Tips for Insuring Your New Car
If you’ve been waiting and saving to buy your new dream car, tax season may be the time that you’re finally able to pull the trigger. Many Americans receive a tax refund each year, and if you’re one of them, you can use your tax refund money toward a down payment on a new vehicle purchase or lease.
But don’t forget the most essential part of owning a car: making sure it’s properly insured. While not as fun as driving away in your new, shiny vehicle, ensuring your car is properly insured can help you save thousands of dollars.
Whether you’re getting ready to buy a new vehicle with your tax refund or have already purchased your new car, keep the following tips in mind to be well on your way to properly insuring your vehicle.
#1: Shop for Coverage Before You Purchase Your Vehicle
If you’re considering buying a new vehicle, you should contact your insurance agent to discuss the implications of adding or dropping a vehicle on your policy. Your new vehicle may cause your premium to increase, depending on the type of vehicle and its value, color, safety features and location. Or it could result in lower premiums. Shopping ahead can help you avoid policy sticker shock and alert your agent to your potential new insurance needs.
#2: Explore Coverage Options
Whether you’re purchasing your new vehicle outright, leasing or getting an auto loan, you may be required to carry certain levels of coverage. Most lienholders or lenders will require you to carry full coverage (i.e., comprehensive coverage and collision coverage) and potentially even guaranteed asset protection (GAP) coverage, which can drive prices if you’re used to only carrying the minimum amount and type of insurance required by North Carolina. Work with an insurance agent to determine what coverage options are available to you and what they may cost.
#3: Take the Cost of Insurance into Consideration
While you may be budgeting for your monthly car payments, you must also consider the costs of insuring a new vehicle. Don’t overextend yourself financially by buying a car you cannot properly insure. Auto insurance premiums continue to climb, so be prudent when shopping.
Let Us Help You!
At ACF Insurance Services, we’re here to help you with your auto insurance needs. Call us today if you plan to buy a new vehicle with your tax refund. We’re happy to help you navigate the auto insurance market.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.