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February 19, 2019

Insuring Your Brand-New Car

Couple Buying New Car

If you buy a car in mint-condition, you’ll take possession of an item of significant value. These cars will have the full value they accumulated as they rolled off the assembly line. Thus, you’ll want to protect your investment in this new possession. That will mean insuring the car immediately.

Since it is a new car, you’ll probably need wide-ranging coverage. What is some of the most-critical coverage?

Why You Need High Coverage Limits On New Cars

Sudden damaging occurrences might destroy some or all your investment in a new car. You might have to pay for expensive repairs. You might even lose the vehicle altogether. If this happens, you might lose a lot of money in terms of resale value.

By enrolling in auto insurance, you can get the funds to recover from such incidents. The coverage will give you financial security in the event of an unforeseeable incident down the road.

However, to get adequate protection, you’ll usually need the highest coverage limits from the outset of the policy. That’s because of the significant value behind the vehicle.

Appropriate Coverage

When buying your car, get insurance before you even drive it off the lot. You will likely buy a new policy, though sometimes you can use your old car’s policy on the new car for a limited time.

Some of the coverage you might need includes:

  • Liability Insurance: North Carolina requires all drivers to carry this coverage. It will help you pay for the damage of other parties if you are deemed at-fault for their losses in a wreck. You can often increase your minimum coverage to higher limits.
  • Collision Coverage: This policy will help pay for damage to your vehicle after a wreck.
  • Comprehensive Insurance: Coverage pays for vehicle damage from other incidents — such as storms, fires or theft.
  • Uninsured/Underinsured Coverage: If another driver is found at-fault for your losses, they might not have appropriate liability insurance to repay you. This coverage can help you pay for the losses the other person’s coverage won’t.
  • Gap Coverage: Your car will begin to depreciate as soon as you drive off the lot. However, your loan will remain in place. So, if you lose your car, you could encounter a scenario where the insurer will pay for only the vehicle’s value, rather than the value of the loan. You could still have to pay the cost difference between the loan value and vehicle value. Gap coverage can help you make up for this difference.

Keep in mind, in most cases, your lender will require you to carry certain coverage. Talk to them to see if you have any requirements. Your ACF Insurance agent can likely accommodate these requirements without much hassle.

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