According to the Insurance Information Institute, August 2013 was the best sales month for U.S. auto makers in nearly five years! That’s not really surprising. With the economy improving and consumer confidence getting a stronger foothold, folks who delayed the purchase of a new car or truck are now making their move.
It’s also no surprise that new cars can’t leave the showroom without proof of insurance. While your existing auto policy provides temporary coverage, that’s only for a limited time. (The time period varies by insurance company.) Also, during any transition time between the old policy and new policy, the coverage for your new vehicle is identical to the old car. So in order to make sure your new car is adequately protected, we recommend that you let us know in advance of the purchase. Here are a few good reasons why:
- We can give you an estimate of what your new insurance premium will be. With that you will have a total picture of the new car ownership cost.
- Since the amount of time you have to transfer your coverage varies by insurance company, you’ll know that window in advance and avoid the risk of being with proper coverage.
- If you’re trading in an old clunker that had bare-bones protection and you’re financing a new car, you will need to add Comprehensive and Collision coverage to your policy. (Collision coverage damage from a car crash; Comprehensive covers almost everything else, such as damage from fire, falling objects, theft, etc.)
- Letting us know your plans in advance means you can drive home in your new vehicle with the proper coverage for your new car. And that means you drive home worry free from day one.
You’ve probably heard that a new vehicle depreciates the minute you drive it off the dealership’s lot. That’s absolutely true. And Edmunds (provider of auto data) estimates that a vehicle’s value depreciates roughly 20% in the first year of ownership. So if you’re financing your new vehicle, you need to keep in mind that car insurance is designed to cover only the car’s current value. Talk with your Cushman Insurance Group insurance agent about gap insurance; it fills the gap between what the car is worth and what you owe on it if your new car is totaled in a crash.
If you’d like a quick quote on auto insurance, click here.
|For more tips and advice, plus local updates: LIKE us on facebook!|