New Year, New Car: Understand Your Insurance Costs
Now that it is 2018, it may be time to trade in your car for a new set of wheels. Many auto dealerships offer sales and other discounts at the start of the year.
However, once you buy a car, you need to protect it. Your state will likely require you to carry auto insurance. If you are about to insure a new car, the coverage options available to you may be confusing.
Why You Need Auto Insurance
Accidents may cause vehicle damage or property damage. They might cause injuries to the driver or to others. These damages might result in medical bills, lawsuits and repair costs. In severe cases, these costs might financially ruin an affected driver. That’s where auto insurance can help. It can provide funds for drivers’ financial obligations following an accident.
Getting the Right Coverage
When you get a new car, you will want your auto policy to reflect the value of your car and your own financial needs. You want to have enough coverage to afford repairs and compensation for your losses.
Auto policies are not one-size-fits-all insurance protection. Each policy specifically targets your vehicle and the risks you encounter while driving. Therefore, your auto policy on your old car will not adequately protect the new car. Drivers should scrutinize the coverage they need for the new vehicle. Getting coverage will require careful research between you and your insurance agent. With a new car, you usually need to buy:
- Collision Coverage: Can help the driver pay for damage to their own vehicle after a wreck.
- Comprehensive Protection: Hazards like fire, theft, storms, vandalism or other forces might damage a vehicle. This protection can help drivers obtain insurance for non-accident damages.
- Liability Protection: Vehicle accidents might harm other drivers and their own property. If the accident is your fault, you might have a responsibility for the losses of the other driver. That driver might have the right to file a claim against your own insurance to help them pay for their losses.
- Medical Payments Coverage: Such protection can help drivers pay for their own medical needs following an accident.
- Umbrella Coverage: Can add extra liability protection on top of your existing coverage. It might help drivers in the event of severe liability claims.
- Gap Insurance: Even if you total a car, you might still have to pay off the car’s loan. Some auto policies might only provide funds for the value of the car, not necessarily the loan. Often, the loan value is more than the actual value of the car. Gap insurance can help you get funds to meet the loan payments.
Ask your insurer about the proper limits to protect the value associated with your car. Remember, you might need higher coverage limits early on because of the high value of a new car. This can help you protect your new vehicle as effectively as possible.
Call us for a new car insurance quote in Dublin at 925.737.1560.