xoxovain » When Should I Let My Car Insurance Company Know I ...

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Shopping for a new car is one of the coolest parts of being a driver. There’s something thrilling about standing at the edge of a car lot looking over miles of possibilities. (Okay, probably not miles, per se…but it was a nice image, wasn’t it?) Since shopping for a new car is probably one of the most expensive things you’re going to do this year, you want to make sure your car insurance company has you covered.

You’ve probably heard the horror stories, and if you haven’t now’s a good time to start. There have been hundreds of cases where drivers have signed on the bottom line for their new car, picked up the keys and driven off the lot, only to have an accident (for one reason or another) before the car even rolls into their driveway for the first time. Imagine spending $10,000+ on a new vehicle and not even getting it home. It’s times like these that you’re grateful you have car insurance.

Or do you? Car insurance companies all have their own policies when it comes to insuring new cars, so it pays to talk to your insurance agent as soon as you know you’re going to be shopping around. Some companies, particularly if you’re going to be replacing your old car with your new one, will automatically cover the new vehicle with the same coverage you purchased the first time around. That usually leaves a three to four week window to get insurance on your new car, which means you don’t have to stand around the dealership talking on your cell while the salesperson waits for you to leave so they can move on to their next commission.

Not every company offers this, however, so it pays to make sure. A quick call to your auto insurance agent can take care of everything.

The other thing you need to be aware of is the terms of your financing. When you finance your car the lender has a vested interest in making sure you’re going to be able to pay back your loan. The only way they’re going to be able to do that (other than seizing $10,000 worth of assets) is to make sure your car insurance will cover you if you’re in an accident. If you borrowed money to pay for your car you can almost guarantee that you’re going to have to carry comprehensive, collision and uninsured motorist insurance along with your standard liability policy. If your old policy didn’t have those, you’re going to need to add them on before you take your new addition home.

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