3 Insurance Tips For Buying a New Car

Buying a new car and have questions about insurance?

It’s probably the last thing you want to worry about when shopping around for a new toy, so here are 3 auto insurance quick-tips to get you through the car-buying process.

Tip #1: Younger drivers + Sporty models = Scary rates

Choose your new car wisely; vehicles valued at over $80,000 almost always equal higher premiums for the policyholder. These rates aren’t restricted to luxury cars, either.

In the insurance world, higher incidences of risky driving behavior (and the accidents that commonly follow) are associated with younger drivers, making rates for those under 25 notoriously pricey. So, beware if you’re checking out sports utility vehicles (SUVs) for a newer, younger driver… That end-of-the-year deal could come at a price on your auto insurance.

According to the Insurance Information Institute, younger drivers may be able to save on premiums by:

  • Keeping at least a B average in school
  • Graduating from a recognized driver training course
  • Attending college at least 100 miles away from home and leaving a car off campus
  • Joining certain nationally-recognized honors or professional organizations

Offers and pricing can vary by the insurer — even for younger drivers.

Be sure to do your homework before settling on your preferred model, or let us walk you through it.

 

Tip #2: Know where the responsibilities lie

“I thought that was the dealership’s job!” Surprisingly, this is one we hear quite a bit from the excited owners of new cars.

Yes, any current full-coverage auto insurance policy transfers to any newly-acquired vehicle, but that’s something only the policyholder can handle… not the dealership salesperson nor anyone else. Access your policy account online, or call your agent for help with adding a new car to an existing policy.

When buying your shiny new toy, the grace period for adding a new vehicle to a policy is 30 days. So don’t forget exactly whose responsibility it is to tie up any loose insurance ends.

 

Tip #3: Financing? Get your ducks in a row…

Most people can’t just waltz into a dealership and buy a car in cash… If you can, we definitely applaud you!

If not, you’ll likely need to prepare a bit more and that’s perfectly okay. Keep in mind a few things you’ll need for insurance purposes if you’re financing a new vehicle:

  • Give to your TGS Insurance agent the name and address of your lienholder, (the company through which you’re financing). This will ensure the financing company receives your proof of insurance.
  • For leased vehicles, your insurance must have the legally minimum required limits of $100,000/ $300,000 for liability coverage and $50,000 for property damage.

2018 is almost here, and so are the latest offerings from automakers. Don’t get caught in a bind when you should be enjoying your new ride! Find your match made in new-car heaven and make the insurance transition simple with these 3 tips.

Source(s):

“Auto insurance for teen drivers.” III.org, Insurance Information Institute, Inc., www.iii.org/article/auto-insurance-teen-drivers.