Insurance specialist
Car insurance is a kind that you better have for car buying, but in reality, it is not necessarily scary. You are going to be much better off, either way, whether you’re buying your first automobile or updating it if you know the process. Learning what protection you need and the tricks to find the cheapest one will not only ease you from the hassle of time but will save you money as well. We’ll guide you through the whole sequence, making sure you are comfortable when you drive away with the necessary insurance. So, let’s get into the nitty-gritty of it and let us try to make the process as easy as possible.
When to Buy Insurance for Your New Car?
Insuring a brand-new car when you just bought it is indispensable. However, the period for which you should get the insurance depends on many factors, and in some cases, there could be no need for it. Here it is important to mention that you may not need to buy a new policy if you have any other vehicle insured, and also many companies allow a grace period, which usually lasts for 30 days, during which you can drive away your new car using your own policy.
Still, it is important to state that knowing the grace period is not an excuse, of course, to escape from the obligation to buy a new policy for your new car. In such a case, you would have to inscribe either a new policy or the existing car on your policy within that period. Failing to do that would mean that you are driving the vehicle uninsured, which speaks of a lapse in your coverage. The effect of this is that you will be subject to a higher premium while renewing your insurance coverage.
If you are financing a vehicle, the standard requirement from your lender will be the comprehensive and collision coverages. So, secure your insurance early to prevent any hassle.
Thus, you may have some time allowed before renewal but do not stall too long. Therefore, make sure you properly insure your car to steer clear of the risks and surcharges.
Best Car Insurance Companies in 2024
Required Coverage Types for New Cars
When it comes to insuring a new car, knowing the absolutely required and additional different coverages is the very first thing to be done. Here’s a list of the most common coverages you must acquire and some that you should consider including as well.
Liability Car Insurance
Almost every country has a binding rule that you must have a liability insurance policy. This insurance type compensates for the losses and injuries to other parties if you are guilty of a car accident. Among these are not only the car damages but also the passenger’s medical expenses and the incurred property damage. Most probably, your losses will be covered by the liability insurance of the other driver if he is the one who is guilty of the accident. However, New Hampshire and Virginia are special cases. In New Hampshire, you can avoid buying car insurance if you can prove your financial capacity to cover a major accident. In Virginia, you can skip the car insurance requirement and pay just a $500 fee, but it’s not recommended.
Uninsured Motorist Coverage
An optimized and up-to-date insurance plan includes uninsured motorist coverage to protect the insured in case of an accident with an uninsured driver or in case of a hit-and-run. Though not mandatory in all states, it is an indispensable piece of protection against the risk of coming across uninsured drivers out on the road. –
Personal Injury Protection (PIP) or Medical Payments Coverage
The PIP coverage should be the first consideration since some states require the insured to have one and this coverage will help to cover medical expenses if involved in an accident regardless of who was at fault. PIP can also cover lost wages and funeral costs. Medical payment coverage is similar but typically doesn’t cover lost wages and often doesn’t require a deductible. This coverage is optional in most states where it’s offered.
Comprehensive Coverage
Usually, it is the requirement of car financing or leasing the vehicle of the comprehensive coverage and thus would be the ideal choice in this case. Besides the protection of comprehensive coverage, which protects your vehicle against non-collision-related incidents like car theft or vandalism, you can also select the deductible, which is the amount of money you must pay before the insurance coverage kicks in.
Collision Coverage
If you’re financing your car, you must buy collision coverage, which pays for accidents when you hit another vehicle or object. This, as well as the comprehensive cover, always has a deductible amount, which is deducted from the paid amount.
Gap Insurance
Gap insurance is mandatory if you finance a brand-new car. It bridges the gap between the loan amount you owe and the car’s actual value if it is totaled. Cars can lose value quickly, so gap insurance relieves the customer of having to pay for an undrivable car.
If you know these insurance types, then you can make your new vehicle safe from different dangers by obeying the rules and keeping your safety.
Optional Coverage Types to Consider
When you are getting insurance for your new car, basic coverage is necessary, and optional add-ons can provide extra protection and peace of mind. Here are some optional coverage types you should think about:
New Car Replacement Coverage
Given, if you are ever in a position where your car is beyond repair, the new car replacement coverage ensures that you are given the proper claim amount for a new car instead of the depreciated value of your car. It is much more practical and advantageous to have new car replacement coverage during the initial year when the car reduces its value rapidly, which may result in the absence of the full amount you had to pay for that vehicle. Nevertheless, this coverage is frequently available only for newer cars. For example, some insurers provide coverage if your car is below a year old or has low mileage.
Rental Car Reimbursement
Suppose the workshop takes your car for repairs after an accident; in that case, rental car reimbursement secures a car to be rented while yours is being fixed. This is a real lifesaver and preventer, which means you’ll still be able to get on with your day without having to be stranded on the road if the car is being serviced. The standard limit of this coverage is per day, so you need to be aware of what is covered in your policy.
Roadside Assistance
New cars are not often vehicles that can just break down unexpectedly, too. Some of the services that come under roadside assistance are towing, battery jump-start, replacing the tire, and lockout assistance. You can include this coverage to your policy to ensure that you pay nothing when your car suddenly breaks down. And, thereafter, you get stranded on the side of the road without any money to pay for the parking meter.
Umbrella Insurance
When a serious accident happens, your liability might be only on paper, and it may not be enough to cover all the damages, especially in cases where there are multiple vehicles along with you. Umbrella insurance permits you extra liability coverage exceeding the limits of your auto insurance standard policy. You mostly need this type of insurance when you have a lot to lose financially. Note: Insurers might want you to have a certain level of auto liability coverage before they let you have an umbrella policy.
You can improve your insurance policy with these optional covers, giving you additional protection according to your needs and lifestyle.
Cost Of New Car Insurance
The cost of a new car in 2024 and the coverage cost involve the make and model of the vehicle, your driving record, your location, and the relevant coverage possibilities. The new car insurance premium can normally range from $1,200 to $1,800 per year on average, but the cost could be higher or lower based on personal circumstances.
Average Premiums in 2024:
Typically, the average monthly premium for a new car is anywhere in the range of $100 to $150, depending on the listed factors. Nevertheless, luxury or sports cars could attract premiums above $200 per month.
Steps to Get Insurance for Your New Car
Follow these steps to get the right car insurance.
Gathering Necessary Information
Collect the make, model, year, and VIN of your new vehicle. Also, gather your name, address, and driver’s license number. You need to know the accidents or violations you had in the last 3-5 years. If you had insurance before, keep that info in mind.
Comparing Quotes from Multiple Providers
Get quotes from several insurance companies online. Ask an agent for personal advice. They may tell you about discounts. You can also ask your current insurance for a rate on your new car. Gather 3-5 quotes to compare them all.
Evaluating Coverage Options
When comparing quotes, check the limits of coverage. Higher limits give better protection but cost more. Look for the deductible amount. A higher one lowers the premium, but you’ll pay more for claims. Think about extras like roadside assistance or car rental help.
Making Your Decision
Compare prices and plans. Choose the best coverage for your costs. Ensure the policy fulfills your state’s insurance needs. If you have loans, check lender requirements. Ask for discounts like multi-policy or safe driving.
Finalizing Your Policy
After selecting the policy, offer extra information to the insurer. Before signing anything, review the specifics of the policy. Get proof of insurance to drive legally with the new car.
Finding a great deal is vital. But the cheapest option isn’t always the ideal choice. Try to acquire sufficient coverage for your new investment.
Get Quote Now
Finding car insurance can be hard. Insurancheck makes it easy by showing you different car insurance quotes from many companies all at once. This way, you can get the coverage you need at a good price. If it’s your first car or you’re getting a new one, we help you through the whole thing. You will feel sure about the choice you make. Get a quote now to protect your new car.
