Choosing the right new car insurance policy can be a frustrating and confusing process. Once you understand the specific requirements for your region, state, and personal circumstances, soliciting a quote also becomes an important part of the equation. Here, you'll discover a few tips that will help make shopping for new car insurance much easier.
Anatomy of a New Car Insurance Policy
Choosing the right insurance policy for your new car can be a frustrating and confusing process. Once you understand the specific requirements for your region, state, and personal circumstances, soliciting a quote also becomes an important part of the equation. Here, you'll discover a few tips that will help make shopping for new car insurance much easier.
Your New Car and the Cost of Insurance
The process of buying a new car, although sometimes filled with a little trepidation, is exciting, nonetheless. When calculating the cost of a new car, you add in sticker price, taxes, maintenance, and cost of gas. Somehow insurance costs get lost in the mix. A good rule of thumb is the more you pay for your car, the more you are likely to pay for insurance. A top-of-the-line, fully loaded luxury car will cost more to insure than the no-frill economy car for two reasons: the luxury vehicle is more likely to be targeted for theft and the luxury vehicles parts are much more expensive to repair and/or replace. Now, there are exceptions to this rule. For example, Volvos receive more insurance discounts because they, on average, inflict and receive less damage in collisions. Volvos also have lower rates of theft and do a better job protecting passengers than most other car brands.
Liability Insurance for New Cars
Liability refers to bodily injury and property or vehicular damage when you cause an accident. You will want to carry a recommended $100,000 for the former and $300,000 for the latter, per collision. You can choose the amounts, but it is often wise to go with the highest levels you can afford. State laws regulate lowest-end amounts for leased or purchased vehicles.
Collision and Comprehensive Coverage for New Cars
Collision and comprehensive coverage are determined by the Blue Book value of your car plus repair cost estimates. If you are involved in an accident, collision coverage will pay for repairs or replacement. Comprehensive coverage is also effective in the case of acts of vandalism or damages incurred from natural disasters, including weather-related damages.
Personal Injury Protection and Uninsured Motorist Coverage for New Cars
Personal Injury Protection (PIP) will cover medical expenses in accidents involving a vehicle. Protection extends to you or covered family members even as passengers in other vehicles. If a vehicle strikes you while walking, you are also eligible for coverage.
Uninsured and underinsured motorist coverage fills the gap when the other person cannot or will not pay. If you are the victim of a hit-and-run or your vehicle receives damage by someone else, this portion of the policy covers you.
Tips to Save on New Car Insurance
Always shop around, both locally and through Internet resources. Obtain at least three quotes to make an informed decision and consider these tips:
Source: http://www.autoinsurancetips.com
Anatomy of a New Car Insurance Policy
Choosing the right insurance policy for your new car can be a frustrating and confusing process. Once you understand the specific requirements for your region, state, and personal circumstances, soliciting a quote also becomes an important part of the equation. Here, you'll discover a few tips that will help make shopping for new car insurance much easier.
Your New Car and the Cost of Insurance
The process of buying a new car, although sometimes filled with a little trepidation, is exciting, nonetheless. When calculating the cost of a new car, you add in sticker price, taxes, maintenance, and cost of gas. Somehow insurance costs get lost in the mix. A good rule of thumb is the more you pay for your car, the more you are likely to pay for insurance. A top-of-the-line, fully loaded luxury car will cost more to insure than the no-frill economy car for two reasons: the luxury vehicle is more likely to be targeted for theft and the luxury vehicles parts are much more expensive to repair and/or replace. Now, there are exceptions to this rule. For example, Volvos receive more insurance discounts because they, on average, inflict and receive less damage in collisions. Volvos also have lower rates of theft and do a better job protecting passengers than most other car brands.
Liability Insurance for New Cars
Liability refers to bodily injury and property or vehicular damage when you cause an accident. You will want to carry a recommended $100,000 for the former and $300,000 for the latter, per collision. You can choose the amounts, but it is often wise to go with the highest levels you can afford. State laws regulate lowest-end amounts for leased or purchased vehicles.
Collision and Comprehensive Coverage for New Cars
Collision and comprehensive coverage are determined by the Blue Book value of your car plus repair cost estimates. If you are involved in an accident, collision coverage will pay for repairs or replacement. Comprehensive coverage is also effective in the case of acts of vandalism or damages incurred from natural disasters, including weather-related damages.
Personal Injury Protection and Uninsured Motorist Coverage for New Cars
Personal Injury Protection (PIP) will cover medical expenses in accidents involving a vehicle. Protection extends to you or covered family members even as passengers in other vehicles. If a vehicle strikes you while walking, you are also eligible for coverage.
Uninsured and underinsured motorist coverage fills the gap when the other person cannot or will not pay. If you are the victim of a hit-and-run or your vehicle receives damage by someone else, this portion of the policy covers you.
Tips to Save on New Car Insurance
Always shop around, both locally and through Internet resources. Obtain at least three quotes to make an informed decision and consider these tips:
- Consider safety add-ons that protect occupants, including side-impact restrains, collapsible steering columns, and interior padding
- Consider safety add-ons that help collision avoidance, including anti-lock brakes.
- Look for companies that offer replacements for total losses. Some companies are now offering a service that replaces a new car that is totaled with another new car (same make and model), without charging or deducting for depreciation. “New” is usually defined as having less than 15,000 or within the first year of purchase (whichever comes first).
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