You've just bought a new car and need to transfer your old coverage over. How does it work?
We cover the basics of insuring your new car.
Can I Transfer My Old Policy Over to My New Car?
When it comes to insuring your new car, yes, you can generally transfer your old policy over. Notify your insurance agent of your intentions to purchase a new car before the actual purchase is made. Your premiums may change with the purchase of a new car depending on the safety rating of the car and the total cost of your car; if you are concerned about your premiums increasing, get quotes before making a new automobile purchase. If you are purchasing your car from a dealership, inquire whether insuring your new car can be handled during the purchase. Dealerships will often prepare any paperwork and call your insurance agency with all the information needed, from VIN number to make and model type.
Discounts Available on New Cars
When purchasing your new car, find out the typical injury claims, theft rates by vehicle model and collision repair costs. These factors will help determine how much insuring your new car will cost. A car with a high theft rate will cost more to insure than a car with an extremely low theft rate, while a car with air bags and anti-theft devices installed will cost even less than one without those features. These features may cost more to install now, but when you factor in the additional insurance costs of not having them, adding them now seems worth the cost.
Insuring your new car may cost less if it is an economy car, compared to a luxury automobile. Purchasing the most expensive car on the lot, the one with all of the latest and greatest in features and technology, will generally cost you more in auto insurance compared to an economy car. Reason being is that an expensive car with all the frills will cost more to repair and is more likely to be stolen or vandalized than an economy car. Consider these factors when making your purchase.
If you've decided on your car and have chose to transfer your old policy over, make sure to review your old policy first. If you had an older car previously, you may have opted for lesser coverage. If you're now leasing or financing your car, however, you'll want to reconsider the types of coverage you opt for. If you are leasing your car, the company loaning the car out to you will typically require that you have GAP, Guaranteed Auto Protection, Coverage. GAP Coverage generally covers the difference between what your insurance company pays on repairs and what you still owe on the vehicle. GAP Coverage is often included in leasing agreements, but make sure to discuss this lease car insurance coverage with your insurance agent as well.
Purchasing a new car can be an exciting adventure, but make sure that you have all bases covered when it comes to insuring your new car.