There you are, out car shopping on a sunny Saturday morning. Whether it’s your first car or your fifth, you can’t help feeling the bubbles of excitement as you stroll across the lot, coffee in hand, looking at all the different cars.
Of course you know what you want. Kind of. You’ve done your research! You have an idea what type of vehicle you need, looked into your financing options, made up your mind on whether you’ll buy a new or used car, and read up on gas mileage, crash test and safety ratings. You even know what color you’d like.
Today is the day. You are ready to make a move and drive the new ride home.
But did you call your insurance agent to make sure you and your new car are covered as you drive off the lot?
Buying a new car is exciting and nerve-wracking. There are so many things to think about and one of the most important things on your mind is your insurance.
Give us a call at Resource Insurance Group and we will help you determine the coverage you need for your new (or new to you) vehicle.
Car Dealer says you have 30 days to insure your new car? Beware! It’s not always true!
So you’ve found the car that you like and you are sitting down to do the paperwork. As you pick up the pen, it occurs to you that you forgot to call your agent to get insurance for your new car. No! It’s Saturday afternoon, you are exhausted and tired and you just want to drive it home. But along comes your car dealer with some fabulous news: "You have 30 days to add it to your insurance plan," he says.
So there's no need to fret...Right?
Although for many insurance carriers this is true, before you bank on it, make sure that your current auto insurance policy will guarantee coverage for the thirty day gap. Some companies will only cover in certain cases. For example, it might work when you trade a vehicle but not when you buy an additional vehicle. Be sure to know what your policy says before you go shopping.
Better yet, don’t rely on the 30 day coverage and just give us a call before and we can set it up so you will have the coverage you need as you drive off the lot.
Car loan “upside down”? Get the insurance, but not from the dealer.
As you purchase your new car, you may be presented with the option to buy an auto loan/lease or “gap” coverage. “Gap” coverage is needed when you are “upside-down” on your car loan. This can happen if you take on a loan with a zero or low down payment, financing most of the car’s cost. Cars depreciate incredibly fast, and as a result, the amount that you owe on the car may quickly be far greater than its fair market value.
This can become a problem if your car is totaled after an accident or theft. If your car is a ‘total loss’, your insurance company is only obligated to pay for its fair market value. If the amount you owe on the vehicle is more than the market value, you might find that you need to pay additional money (sometimes thousands of dollars) just to pay off the car loan (even though you can’t even drive the car anymore!)
So it is a very good idea to purchase “gap” insurance, but not from the dealer. It is usually a much better deal to go through your current insurance provider. Most insurance companies will charge a monthly fee (for example: maybe $50-70 a month) for gap coverage while a dealer will ask for a lump sum (maybe $600-800 in a comparable scenario). If you purchase it through your insurance provider you will have greater control, dropping the coverage when you are no longer in danger of being upside-down, possibly saving you quite a bit of money.
If you have any questions or concerns, simply call our office and we will help you out in any way we can.
Buying a used car? If it sounds too good to be true, it probably is.
Maybe you did your car-shopping online, and you found a great deal on a used car. Low mileage, good condition, and after the test-drive you find it runs like a charm. The price is good, too. In fact, it's great! They could get much more for this if they wanted to...
Wait. Why don’t they?
The only real danger in buying a used car is that you never really know what has happened to the car. You are totally dependent on the honesty of the previous owner. Or you can get a vehicle history report. While you can get a history report online, just contact our office and we will get it to you for free.
Buying a car for your teen? Read this.
Your son just turned 16 and, of course, he passed his driver’s license test on his birthday. So, down memory lane you go…Remembering how you drove the old beat-up blue pick-up truck to school (Pick-up? They should have named it Hick-up!) and were dreaming about that sleek convertible…
Now your son’s 16, and you want nothing more than make his dreams come true. What parent doesn’t? Since both of you are into cars, you agree on a sporty model. It stretches the budget but it’s affordable.
The surprise comes Monday when you call your agent to add the new car to your insurance plan.
How Much?
A young driver and a new sporty vehicle is often a dangerous and expensive combination. Although many teens are good and responsible drivers (your teen may be one of these), studies indicate that young drivers are at the highest risk on the road. They are considered high-risk drivers by every insurance company simply because they lack the experience of older drivers and are more likely to get it an accident.
If you are looking for a new car for your son or daughter, we recommend that you consider a mid-size vehicle that is slightly older. These cars are shown to be extremely reliable and offer the safety features that your child will need. And older cars are usually less expensive on your insurance policy.
Thinking about co-signing on a loan? We don’t recommend it.
Your grown-up daughter, who’s been living on her own for a couple of years, was just laid off from her job due to ever-present budget cuts. As if that wasn't enough, her trusty old sedan just broke down as well, this time for good. Luckily, she has interviewed for a new position and things are looking pretty good...but if she gets the job, she will need a car to get herself there every day. Without a car, she can’t take the job. And even with the new job, adding a car payment to the budget will make things tight...very tight.
So, you consider helping her out by co-signing a car loan.
Although you want to help your child in every way you can, think twice about co-signing on a car loan with him or her. Liability follows the registered owner so even if you aren’t driving the vehicle or don’t have it listed on your auto policy, you may be held liable in the case of an accident.
The best option may be to give financial support, but let your child put the car in her name only. This will protect you and get her the help that she needs to get back on her feet.
Buying a car is exciting! Give us a call and we will help you out in any way that we can!