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10 Recommendations For New Auto Insurance Coverage
If you’re shopping for car insurance for your new car, here are 10 important things you’ll want to consider:
What kind of coverage are you required to have?
Most states require you to carry liability coverage, which helps cover other drivers’ expenses if you cause an accident. Others also require additional coverage, such as Personal Injury Protection or Underinsured/Uninsured Driver Insurance. Make sure you have the coverage that’s mandated by the state in which you live, or you’ll be breaking the law. Check car insurance laws in your state.
Do you want any additional type of coverage?
You may want additional insurance coverage above and beyond what’s required. Many drivers opt for full coverage, which is a combination of collision and comprehensive coverage.
Do you need gap insurance?
If you have a new car, you may want to purchase gap insurance. This helps cover the difference between what you owe on your car loan and what your insurance company says your vehicle is worth. Some may call this the grace period. Otherwise, you could total your car and still end up owing your bank or finance company money because your insurer would pay less than what you owe.
What coverage limits do you need?
Each state has its own mandated coverage limits. For example, in Georgia, you’re required to carry $25,000 per person for bodily injury liability, $50,000 for multiple people in an accident, and $25,000 for property damage liability. In many instances, you may also want to carry more than the state-mandated minimum. Learn more about all types of coverage.
What kind of discounts might you qualify for?
- It pays to ask if there are any discounts that you can take advantage of. Many insurers offer discounts if you insure multiple cars with them or have your homeowner’s insurance with the same company. Sometimes your occupation or the employer for which you work will also enable you to receive a discount on your auto insurance.
Do you receive any additional benefits, such as roadside assistance or rental car service?
- Some auto insurance policies come with additional perks that may help you save money. For example, you may have roadside assistance coverage that will help you unlock your doors, bring you a can of gas, or tow you to a repair shop.
What size of deductible do you want?
- You may be tempted to get insurance with the lowest deductible that’s offered, but that may be a mistake. If you can afford to cover more out-of-pocket costs, your premiums will be lowered. This will essentially increase or decrease your new car insurance.
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How often will your payments be due?
- You may be able to pay your insurance premiums monthly to help make your bill easier to bear, but you’ll usually pay for the privilege. Insurance companies often tack on an additional charge if you choose this method, so if you can afford it, try to pay your insurance yearly or twice a year.
What will you use your car for?
- Be honest with your insurance company if you use your car for business purposes. Otherwise, if you purchased a personal policy and didn’t disclose the fact that you use your car for work, your insurer could deny a claim.
Will other people be using your car?
- If there are other people who will be driving your car, they can affect your insurance rates. Depending on their age, driving record, and credit history, you could end up paying more to let them drive your car. Particularly if you’re letting a non-family member use your car, you may want to rethink your decision.