Will insurance cover a new car automatically, and should you look for a new rate?
After purchasing a new car, the car insurance policy that people currently have for their old cars will cover their new vehicles. The problem is that this will only be temporary; these drivers will need to inform their auto insurance companies that they have a new vehicle or they can seek auto insurance from another company if it will be more advantageous for them to do that.
Remember to Call the Insurance Agent
It’s highly important for policyholders to call their insurance agents, if not before they purchase a new vehicle then at least after they have chosen the model they want. Their current insurance policy has the old car listed as the insured vehicle. If policyholders change one car for another and never tell their insurance agents about it, temporary coverage will expire and the new car will be unprotected. Furthermore, they will be paying for auto insurance for a car that they no longer own.
Extra Insurance Coverage May Be Needed
When people have older cars, they keep their insurance rates low by not purchasing collision and comprehensive coverage. The new car will, undoubtedly, be worth more than the old car and after people have purchased a new car, they will want to add this coverage to their policies. They will need to contact their insurance agents in order to obtain a quote for this extra coverage.
Seek Quotes from Other Insurance Companies
When people seek to add coverage for a new car, their rates are going to be raised. The quotes they receive from their insurance companies may even be too high for them to consider. In that case, they can do a comparison quote search to discover if another insurance company can offer them auto insurance for their new cars that’s better than their old companies’ quotes.
Use Comparison Quotes as Bargaining Chips
These policyholders can also use their quotes as a bargaining chip with their current auto insurance companies. These people may be satisfied with their current companies and not want to switch. Insurance companies also like to retain their clients as often as they can. If these policyholders receive better quotes from other companies, they may be able to convince their current companies to match those prices.
It’s advantageous to policyholders to seek a new rate for their auto insurance before their temporary insurance coverage ends. It would be even better to seek these lower rates before they purchase a new vehicle to make sure that they buy the car that entitles them to the lowest rates. If they can’t receive these lower rates from their current auto insurance companies, they have the option of seeking quotes from the several other auto insurance companies in existence. With careful planning, people can receive great insurance rates for their new vehicles.
Miles Walker is a freelance writer and blogger who usually looks at car insurance quotes over at CarinsuranceComparison.Org. His most recent review looked at the best Illinois car insurance.