4 Steps For Insuring A New Car
Getting a new car is exciting. Buying car insurance, much less so; but you still have to do it because it’s required by the law. Most dealers won’t let a car leave their parking lot without an insurance in place.
Apart from keeping up with the law, it’s also wise to get insurance in case bad luck decides to get your brand-new car into a fender-bender as soon as you leave the lot. As the old adage goes, better safe than sorry.
So, before you hit the road with your new ride, here’s a short checklist of must-do’s and must-have’s.
- Check State Laws
In the United States, liability car insurance is required in almost all states, except for New Hampshire. This serves as proof that you have the financial capacity to cover all costs if you ever cause an accident.
There’s no universal standard for the minimum liability requirements, but most states go by the 25-50-25 rule. This means that if you find yourself at fault in an accident, your insurance will pay USD$25,000 for every third-party person involved, USD$50,000 for every accident, and USD$25,000 in car repairs and property damages.
- Consider How Much Insurance You Need
Liability insurance can save you from emptying out your finances in case you cause an accident. However, in most cases, the minimum liability requirement isn’t enough to cover serious injuries, car repairs, or complete replacements.
You should buy more coverage than what your state requires, especially if you have assets to protect. It’s the wiser choice than having a third-party take you to court to pay for an accident since the court might decide to take your assets.
- Decide What Type Of Insurance To Get
Remember, liability insurance only covers damages to other vehicles. For coverages that protect your vehicle, there’s collision insurance, comprehensive insurance, and gap insurance.
Collision insurance pays for physical damages to your car regardless of who caused the collision–it could be you or a third-party motorist. Comprehensive insurance, on the other hand, pays for damages from natural accidents or events not caused by driver error. This includes natural disasters, theft, or vandalism.
Gap insurance, also known as lease insurance, is an optional coverage for leaseholders. In case your car gets totaled or stolen, gap insurance will pay the difference between the depreciated value of your car and the remaining balance from your lease.
If you already have an existing coverage for an older car, you can simply inform your insurance carrier so they can extend it to your new car. If you incurred offenses and have been ordered by the state court to get an SR-22 coverage, SR-22 Savings offers the best plans with the lowest insurance rates.
- Title Transfer And Car Registration
Once you’ve decided on what insurance to buy for your new car, you have up to 30 days to transfer the title and register the car. This is what most insurance carriers allow. However, as explained earlier, it’s best to buy coverage before or on the same day you sign all the vehicle’s paperwork.
There’s no doubt that owning a car can be a significant investment. With the large amount of money involved in purchasing one, it’s always a practical solution to get your car insured as early as you can.
Luckily, by following the steps mentioned above, you can streamline the process and get the right insurance coverage your vehicle needs in no time.