Best New Car Auto Insurance Policy

Reader’s Question:

I just got a new car, my dealer said that it comes with an auto insurance policy and that I need to choose a package. What does this mean?

George

Atlanta, GA

An auto insurance policy is very similar to other types of insurance policies. Availing of a plan allows you a certain amount of protection in this case from things that could cause either damage or loss to your vehicle. Now of course the remuneration is dependent on the kind of event that led to loss or damage so you shouldn’t assume that just because your vehicle is insured that you are safe from everything.

If your asked to choose packages keep in mind that you are looking at coverage options and premium rates. Review every single package offered including the fine print then remember to look for the most coverage you can get at the lowest amount of premium rates. Auto insurance policy coverage can be very specific so remember to check what the plan actually protects you from and consider the possibility of it really happening to you.

If you can find an auto insurance policy option that can protect you fully and you can afford the premium then by all means go for it. Do not be taken aback just because of a high premium rate because there is an option to amortize the rate monthly so it won’t be too heavy on you.

Cheap Auto Insurance For A New Car

Reader’s Question:

I think one step ahead when it comes to buying a new car here in Georgia. I’m already worried that I’d pay expensive auto insurance. What are the things that can help me lower the payment for my auto insurance?

Carl

Macon, GA

Since you are buying a new car, it’s a good thing that you think one step ahead and already worry about your auto insurance. But you don’t have to worry too much since you can be able to get cheap auto insurance. Here are some tips:

1. Prior to buying your car, you have to make a little research on the make and model of the vehicle so you could choose the model that’s not high profile. An auto insurance broker could tell you the categorization of the vehicle that you would like to purchase so that you have an idea as to how much you would pay on your auto insurance.

2. Be prepared in buying your car by enrolling to a defensive driving course and get a driver certificate. By doing this, it will make you a safe driver thus being seen as lower risk to auto insurance companies.

3. When you already decided and ready to get your own car, there are a lot of steps you can take to get cheaper auto insurance. Installing an anti-theft device must be your priority so that you can truly protect yourself and your vehicle.

4. Be certain to check with your auto insurance provider with the help of an auto insurance broker to verify if you are eligible for some discounts.

5. Ensure that you make a thorough research online to secure yourself the best possible offers on auto insurance. Obtain auto insurance quotes from different insurers so that you have a lot of options. Also, you need to be certain that you compare the auto insurance quotes and the coverage available for you so that you could make the right choice.

The Least Expensive Cars To Insure

Reader’s Question:

What is the cheapest car to insure? My dad will buy my car and I would like to know what vehicles I should avoid getting.

Charles

Cambridge, MA

Car insurance companies refer to statistics from the Insurance Institute for Highway Safety and Highway Loss Data Institute (IIHS-HLDI) to approximate your car insurance rate. The computation done by IIHS-HLDI is based on the following factors:

Type of Car

Insurance rates for muscle and sports car and other luxury SUV’s are higher compared to regular vehicle because their cost of repair is more expensive.

Four-door cars are charged lower rates compared to two-door car because statistics shows that four-door cars have up to 93% lower claims. Car insurance companies, generally, refer to previous claim data for charging new holders.

Full-size family sedans are statistically safer and are, therefore, charged lower. They are also generally cheaper.
If you don’t want to have high insurance rates, you may have to avoid these models:

• Cadillac Escalade
• Chevrolet Corvette Convertible
• Lincoln Navigator
• or any car that has the name Mercedes, Maybach, or Porsche in it.

Level of Risk

Car models that are more prone to theft are given higher rates. Today’s list of most theft-prone cars includes:

• Acura Integra
• Ford F-150
• Honda Accord
• Nissan Sentra
• Toyota Camry
• Toyota Corolla
• Toyota Pickups

Cars that have costly stereos (e.g. Volkswagen) and similar accessories are also charged more.
ON the other hand, the cars which are least prone to and are there given lesser rate for theft coverage are:

• Buick LeSabre
• Buick Park Avenue
• Mercury Grand Marquis four-door
• Volvo V70 Station Wagon

Cost of Repair

More expensive vehicles are, of course, costlier to repair. The list includes:

• Kia Rio 4-door
• Kia Spectra 4-doors
• Mitsubishi Mirage 2-door
• Suzuki Esteem 4-door

(The lists above are based on statistics and similar data. However, you are not discouraged form buying them. You are only informed so you won’t be surprised if you are given greater car insurance rates.)

Luxurious cars are not only expensive to drive; they are also costlier to insure. But if you have lots of money, go ahead and pick the one that you really want.

Do I Need Comprehensive Insurance If I Finance My New Car?

Reader’s Question:

If I will finance the purchase of my car here in South Carolina, why is it so important for me to get comprehensive and collision coverage for my car insurance?

Danny

Charleston, SC

The required auto liability insurance would only pay for the damages on the other vehicle in an accident that you are at fault. In this case, the damages on your car would not be covered by your own car insurance. For that reason, the finance company who gave you the loan on your car would require you to purchase collision and comprehensive coverage.

Collision coverage would be the one to pay for the damages on your vehicle that are sustained in an accident that is your fault. Comprehensive coverage would pay for the damages that are caused by natural disasters such as fire, hail, etc. In case you hit an animal, the comprehensive coverage would also pay for the damages on your car. If you put together a complete coverage for your car insurance in South Carolina, the collision and comprehensive coverage must not be more than the fair market value of your car and must not be less than what you owe to the finance company. You have to check with the finance company if you owe them more than the fair market value of your car.

If you have figured out how much is the minimum liability coverage that you need and you have figured out the minimum amount of comprehensive and collision coverage that you need as well as your deductible, then you can now go online and search at least three various websites that would allow you to compare the costs of auto insurance policies from different insurers.

Tips For Getting Cheap Car Insurance For Your New Car

Reader’s Question:

I’m going to buy my very first car next month. Can you give me tips on how to choose or what to choose so that I can obtain a cheap car insurance?

Dan

Louisville KY

It’s a good decision to consider how much insurance you will have to pay before buying a car. Insurance costs a lot these days that to get a cheap car insurance is a tricky business. Since the type and model of the car will affect the insurance premium, you must choose a model 1997 or something later than that. While older cars than 1997 are less expensive, they can ultimately cost you more for insurance premiums.

If you want cheap car insurance, later models will be a good choice as they also come with safety features, like an airbag, sidebag and roll stability. Insurance companies are particular on these things. The more safety measures the cars have, the better it will be for the premium computation. Another important thing to remember is on the car’s speed. Fast cars are associated with speeding, and speeding to accidents. In this regard, choose a car that has a 4-cylinder engine with an average horsepower. Making these two important considerations can go a long way into giving you a cheap car insurance. Finally, check with local insurance providers how much will they usually charge a particular model before buying one.

Do I Need More Auto Insurance For My New Car?

Reader’s Question:

I have a loan on my new vehicle and I was told that I will be required by the finance company to purchase extra insurance coverage on my new car, why is that?

Emil

Knoxville, TN

If you have a loan on your vehicle, the finance company would ask you to purchase extra insurance coverage. For instance, aside from the auto liability insurance, the finance company would ask you to buy collision and comprehensive insurance coverage that would provide coverage for the value of the loan that you have taken, and you would likely be asked to buy Uninsured Motorist coverage for the protection of the car against damage by another motorist who doesn’t have auto insurance or who doesn’t have enough insurance to cover the damage to your car.

The finance company would ask you to buy collision and comprehensive coverage since the required auto liability insurance would only provide coverage to other cars in the event of a car crash but would not provide coverage for the repair or replacement of your car. Collision insurance, as the name entails, would pay for the repair or replacement of your car in case it sustains damage from a crash with another car or with still object like a lamp post, especially if you were believed to be the one responsible for the crash. On the other hand, the comprehensive insurance would pay for any damage to your vehicle that is due to natural causes such as flood or storm.