Purchasing a new vehicle is generally a very exciting thing to do. There is nothing like that wonderful new car smell and who doesn’t love to drive off in a shiny new vehicle? Well you need to keep in mind that before you do so, you get new vehicle insurance. It is not difficult but here are some important things to keep in mind.
At the time you purchase your new vehicle, you will receive a buyers order. This piece of paper specifies the amount you have paid for the vehicle, any discounts and other taxes and fees associated with the purchase. It will also list specifics of the vehicle such as its model year, brand, model and type. There should also be a long number called vehicle id number listed on the buyers order.
If you have an existing policy, you should contact your insurance company and tell them you want to add a new vehicle to the policy. If you are trading in one of your other vehicles, tell them that you want to remove that vehicle from the policy and add the new one.
At that time, the company representative will ask you for certain information. The first thing he/she will need is information about the vehicle. The vehicle id number is required so make sure you have this information handy. Otherwise you will not be able to get the vehicle added to the policy.
Then the agent will get other information pertaining to the type and amount of coverage desired. If you finance or lease your vehicle, there are usually minimum requirements in terms of the type and amount of coverage. When you sign the purchase documents, you should be provided with this information.
It should be noted that if you lease a vehicle, many leasing companies require that you have at least 100K/300K liability coverage on your policy. This can sometimes raise your premiums if you do not currently carry that amount of coverage.
In addition most finance companies require you to have collision and comprehensive coverage on the vehicle. This covers the vehicle against loss from damage. It will pay for a portion of the cost to repair or replace the vehicle.
For some vehicles the revised cost of your insurance may actually go down. This is especially true if you purchase a vehicle which has an excellent safety rating or if it contains anti theft devices.
Make certain that your agent is aware of all the safety and security devices in your new vehicle so that you can take advantage of all the possible discounts and special rates.
Once complete, your agent will send you a new insurance id card which proves that your new vehicle is properly covered. Once the new coverage is bound you can jump in your new car and enjoy the ride!