If you've decided to buy a new car, you probably had to work hard to get to the point where you're able to afford it. You wouldn't want to lose all that money, so it's important to have auto insurance to protect your new purchase. Here's how and when to get it.
Do You Need Insurance for a Test Drive?
When you're test-driving a car, the dealer has their own insurance. Auto insurance usually goes with the car rather than the driver. Even if you intend to buy the car, the dealer is still the owner you can do.
If you get into an accident and damage the car or hurt someone, the dealer's insurance company will handle the claim. However, this doesn't mean that you would never be liable to the dealer's insurance company for what they had to pay or to a third party who wasn't paid by insurance. Your existing auto insurance policy will typically fill those gaps, so it's a good idea to keep your policy on you when you're out for a test drive.
When Exactly Do You Buy Auto Insurance for a New Car?
You need to have auto insurance as soon as the car becomes yours. If you get in an accident when you pull out of the dealer's driveway, or even before you pull out of the dealership, you're now financially responsible for the car.
The usual process is to call your insurance company while you're filling out the paperwork to buy your car. You'll need the VIN number and other important information. Tell the insurance company you're buying a new car and need coverage to start right away.
How Do You Know How Much You'll Pay for Auto Insurance?
When you're buying a new car, the cost of auto insurance might factor into your budgeting decisions. Different cars cost different amounts to insure. Once you narrow down your choices, you can request quotes based on the year, make, and model of the car. Save the quote you like the best and call that insurance company when it's time to buy your car. For new cars, you will usually pay that exact amount. For used cars, there could be a little variation in your final cost since each car might have different mileage and other features.
To learn more about how to get insurance for your new car, contact a local auto insurance agency today.Share