Carrying a car insurance policy
It is helpful to have a car insurance policy in place before you start shopping for a new car, since dealerships typically ask for an auto insurance ID card in order to test drive cars. Having auto insurance beforehand also reduces the time at the dealership because the dealer will often allow the car to be taken home without receiving evidence of insurance.
Auto insurance premium for a new car
Whether starting a new policy, or adding a car to an existing policy, it can be beneficial to get a quote first. There are many factors that impact auto insurance premiums, and some cars are more expensive to insure than others. Provide the years, makes and models, or better yet, the vehicle identification numbers, to your insurance carrier or agent, and they should be able to provide proposals for the vehicles you are considering.
What information will I need to give to my insurance provider?
Your insurance carrier or agency will need:
- The vehicle identification number (VIN).
- Whether it is an addition, and you are keeping your existing vehicles, or it is a replacement, and you have sold or traded in a vehicle, in which case you should provide a description of the vehicle you sold or traded in.
- If there is a lease or a loan, and if there is a loan, the name of the lender so the required evidence of insurance can be sent. Providers can determine the name and address of lease companies, since there is only one for each manufacturer, but for loans they will need at least the name of the lender (they can usually determine the address.)
How long do I have to add a car to an existing car insurance policy?
It is understood that you cannot always add a vehicle to a policy immediately, so in general, if you have an in force policy, you will have 30 days to add the new car to that policy. When you add the car, you are expected to add it effective the date of purchase. Keep in mind that the sooner the car is added, the sooner the insurer can send the required evidence of insurance to your lender.
What coverage should I select for the new car?
If you are getting a loan or a lease, you will be required to carry comprehensive and collision coverage. Either way, these coverages are a good idea for newer or more valuable vehicles. Leases in particular require liability limits of $100,000 per person, $300,000 per occurrence, and $50,000 property damage. Underinsured Motorist Property Damage coverage may need to be increased to cover the value of the value of the new vehicle. The bottom line is that if you carry great coverage now, you may not need to increase coverage, but if coverage is lacking, it may need to be increased.
Buying a new car and shopping your auto insurance? Contact Chris Elliott Insurance Agency!
Our Seattle insurance agency insures cars, vans, trucks, classics, antiques, and exotics. Tickets, accidents, teens, or an SR22? No problem. To offer the most competitive premiums, we offer several discounts, including good student, defensive driver, usage, and discounts based on occupation, college degree, and military service. Contact our team today!
