You can get coverage immediately after purchasing the vehicle or put it on hold until the transaction is complete. Either way, you’ll want to consider the grace period, minimum liability coverage, and getting quotes. There are also several ways to add a new car to an existing policy.
Grace period
Before you drive off in your brand-new car, check whether your insurance company offers a grace period for buying a new car. If not, make sure you get in touch with them as soon as possible. It may not be too late to switch insurers, but a brief gap in coverage can negatively affect your insurance rate. Also, you should remember that you cannot add your new car to an existing insurance policy if you’ve lapsed your coverage for a short period.
Minimum liability coverage
It’s not uncommon to see advertisements for cars with the minimum liability coverage required by law. Choosing the right level of coverage can protect you from expensive lawsuits. The following are some of the main types of car insurance you should consider. In some states, the minimum liability coverage is just 25/50/25. However, you may want to bump up to 100/300/50 or higher.
Getting quotes
When you’re buying a new car, you’ll probably want to get quotes from different dealers. The first dealership to offer you a price is at a disadvantage. However, you can get a good deal if you get a dealer’s quote first. This is because it’s easy to walk away from a deal if you’re not happy with it, and dealers don’t like losing customers.
Getting a policy
Getting a policy when buying a brand-new car isn’t as difficult as you think. Most insurers provide a grace period for new cars. This means you can shop around and secure quotes before purchasing the car. Once you have a policy, you can set the start date to the day you purchase the car. In case you forget, there’s always the option of setting the policy to take effect the day you sign the paperwork for the car.
Getting full coverage
If you’re buying a new car, you should consider getting full coverage insurance. In almost every state, you must have insurance on your vehicle, considering increasing your coverage level. It costs a few hundred dollars per year more to have full coverage than not to have it. However, you should avoid going without coverage altogether because you could spend thousands of dollars on repairs if you have an accident or are in an accident.
