How to Insure Your New Car
If you are thinking of buying a new car, it is important that you get it fully covered by an insurance policy. You don’t want your brand new purchase to go to waste in the case of an accident. This blog post will walk you through the process of getting the right auto insurance for your new car:
1. Talk to Your Insurance Broker
If you are buying a new car and want to add it to your existing auto insurance policy, then you can just call your insurance broker and they will add the new car to your policy. However, if you want and/or need a new auto insurance policy for your new car, you can contact one of our licensed brokers who would be happy to help you get an auto insurance policy.
2. Add Endorsement 43 to Your Policy
Endorsement 43 is an optional coverage that can be added to your auto insurance policy. Even though it is optional, we highly recommended you add it to your policy, especially if you have just bought a new car. This is because endorsement 43 removes the depreciation from your new car. For example, when you drive your new car home from the dealership, your car depreciates in value, which means it loses almost half of its value. As a result, if you were to get into an accident and crash your new car, your insurance policy would only cover the depreciated value of the car if you did not have endorsement 43 on your policy. So, even though you just bought the car, you would only get the depreciated value of the car back if you did not have that specific coverage. That is why adding endorsement 43 to your auto insurance policy is highly recommended when you buy a new car. Also, endorsement 43 covers the value of your new car for up to 2 years with some insurance companies covering the value for up to 5 years. To get this coverage, just talk to your insurance broker and they can add it to your policy. Just remember to have the bill of sale for your new car, so the insurance broker can document and record the value of the car that they are covering.
3. Full Coverage vs. One Way Coverage
Another aspect you must consider is how much coverage to get for your insurance policy. There are two main coverages: full coverage vs. one way coverage. Full coverage is recommended for new cars because it covers the damages to your car, the other person’s car, and any injuries you and/or the other driver incur. Full coverage covers these damages in both at-fault and not-at-fault claims. Full coverage also covers your car in the case of theft and fire as well. One way coverage is different. In at-fault claims one way coverage only covers the other driver’s car damages, their injuries, and your injuries. One way coverage does not cover the cost of your car’s damages. One way coverage is only recommended for people who have cars that are not of much value anymore. One way coverage would only be beneficial for a driver if the insurance premium would cost more than the value of the car. For example, one way coverage could be of use for a driver with a used, old car worth only a few hundred dollars. Also, one way coverage does not cover the car in the case of theft or fire. As a result, if you have purchased a new car, then full coverage is the way to go in terms of your auto insurance policy.
Buying a new car is a big purchase, so to make sure your investment is protected, you should make sure your insurance policy has the right coverage for your new car. By following these few steps, you can have peace of mind knowing that your new car can be protected by your insurance policy.
Getting insurance can seem overwhelming sometimes, but with the help of an insurance broker, it doesn’t have to be. You can contact any one of our licensed insurance brokers anytime and they would be happy to help you through the process of getting an auto insurance policy.