Trading in an older vehicle for a brand new car is exciting but expensive. Your new car not only costs more than an older model but insuring it is most likely more expensive as well. This makes sense because if something happens to the new car, your insurance company will have to pay more to have it fixed or repaired. Here area few tips for getting the best deal and coverage when insuring your brand new vehicle:
Choose the Right Car
If you haven't yet decided which car to buy, it's wise to opt for a practical car with a good safety rating. This not only helps keep you safe on the road, but will also help you snag a better insurance rate. Insurance companies consider vehicles with high safety ratings to be less risky to insure, so they typically offer discounted rates for vehicles that are known to be safe.
Follow the Correct Transfer Process
The most important thing is to make sure your new car is insured from the moment you drive it off the lot. Most insurance companies offer short-term policies to cover your new car in between purchasing it and having a chance to sign up for a long-term policy or transfer your old policy to your new car, but these short-term policies only last a few days.
As soon as you know which car you are buying, call your insurance company with the details. They should be able to transfer your old policy to your new car and will also set up the short-term "gap" coverage if needed. Keep in mind that if you had liability-only insurance coverage on an old beater car, you will need to upgrade to comprehensive insurance for your new car. Your rate will increase but you will rest easy knowing that if anything happens to your new vehicle, it will be protected by insurance.
Ask About Discounts
Since it's more expensive to insure a new car, it's wise to be proactive in finding discounts. While some discounts are given automatically, many are not, so it pays to ask. You may receive a discount for taking a defensive driving class, buying a car with safety features, or having a telematics device added to your car which tracks your driving habits and rewards you with discounts for driving safely.
By working closely with your insurance agency, like Martin Insurance Company, and following these tips, you will end up with great coverage at a fair price for your new vehicle.