The Importance Of New Car Insurance
Insurance for your new car is a very important financial decision, and shouldn’t be organised in a rush. All financial decisions should be made only after appropriate research and consultation. Start investigating your new car insurance options long before you finalise the purchase of your new car.
Insuring a new car can be the last thing on your mind when you are taking test drives, but it new car insurance is a major cost, and you really need to plan for it. Consider all the costs of getting your new car on the road, budget accordingly, and don’t be pressured into exceeding your budget for the car itself by any pushy salesman.
Factors Affecting Your New Car Insurance
The cost of your new car insurance may vary quite a bit. Different insurers will give different weighting to some of the factors, which means that shopping around can be a very good idea indeed.
Your new car insurance premium will vary based on factors such as where your new car will be garaged, whether your new vehicle has ABS brakes or other safety features, and the ages of the people who will be driving your new auto.
The deductible – the amount you pay in case of an accident – can sometimes be varied to your discretion. If you choose to take a higher deductible in the case of an accident, you will then pay a lower monthly or annual premium for your new car insurance.
Some makes and models are more likely to be stolen or damaged, which means that the insurance cost for these cars will be higher.
Your previous driving record, and sometimes even your credit score can be taken into consideration.
How To Get New Car Insurance
In many cases, you can get temporary insurance cover when you buy a new car. This temporary insurance is called a “cover note”. Most major insurers will issue a cover note over the phone. You then have anything from three days to 30 days to complete the paperwork required for your proper new car insurance.
It is important to shop around for your new car insurance. Make sure you read the fine print on your new car insurance policy before signing. Some insurers lower their premiums by excluding certain things, like fire and flood damage, which you would expect them to cover.
In the state of California, a citizen-initiated referendum put a ceiling on car insurance premiums. The result of this was that many insurers cut back dramatically on what is covered, to keep costs down. If you move to California from another state, you can’t assume that new car insurance will be anything like what it was back home.
You will have to live with your new car insurance for along time. Usually, you won’t discover any problems until you try to make a claim. By properly reading the fine print, you protect yourself from unpleasant and expensive surprises.
This article is an extract from Mark Bennett’s comprehensive guide on getting new car insurance, which is available from AllFinanceAdvice.com.
Mark Bennett is a staff writer for AllFinanceAdvice.com, and is a guest writer contributing to other reputable financial websites and publications.
