When purchasing a brand-new vehicle with an auto loan, it's important to have the right type of car insurance coverage to protect your investment. With so many different types of coverage available, choosing the right options for your needs can be overwhelming. That's where a car insurance agent can help.
This blog post will discuss the types of insurance you should carry and how to choose the right agent for your brand-new vehicle.
Types of Insurance You Should Carry
1. Liability Insurance: This is the most basic type of car insurance coverage required by law in most states. It covers bodily injury and property damage that you may cause to others in an accident. However, it does not cover damage to your own vehicle.
2. Collision Insurance: This coverage pays for damage to your own vehicle if you are involved in a collision, regardless of who is at fault.
3. Comprehensive Insurance: This coverage pays for damage to your vehicle caused by theft, vandalism, or natural disasters.
4. Gap Insurance: This coverage pays the difference between what you owe on your auto loan and the actual value of your vehicle if it is totaled or stolen. You should carry this until you pay off the auto loan on your vehicle.
5. Roadside Assistance: If you are not part of an independent roadside assistance program, consider enrolling in the one offered by your insurance provider. Flat tires and lockouts are still possible, even with a new car.
Many auto loan providers require you to carry collision and comprehensive insurance until you pay off the loan.
Choosing the Right Car Insurance Agent
1. Look for Experience: When choosing a car insurance agent for your brand-new vehicle, look for someone with experience in the industry. They should be able to answer your questions and provide guidance on the types of coverage you need.
2. Check for Licensing: Make sure your agent is licensed in your state. You can check with your state's insurance department to verify their license.
3. Compare Rates: Don't just go with the first agent you come across. Shop around and compare rates from different agents to ensure you're getting the best deal.
4. Ask for Recommendations: Ask friends and family members for recommendations on car insurance agents they trust.
In conclusion, purchasing a brand-new vehicle with an auto loan requires the right type of car insurance coverage to protect your investment. Be sure that your insurance coverage fulfills all state insurance requirements and the insurance requirements that are included in your loan.
Contact a car insurance agent to learn more.