new car insuranceBuying a new car can be an exciting experience, or it can be very stressful. To make sure it is a positive experience you can spend some time looking at the different options that are available to you. Making sure you get the best possible cheap car insurance for your new car is simply a matter of understanding the process ahead of time so you can pick the best options for your personal situation. For insurance purposes, a “new” car is defined as one that has no previous owner, meaning you will be the original owner of the car. Some insurance companies will also specify that the car be no more than 2 or 3 years old. There are three important things to consider when buying a new car; the type of car, whether you are buying or leasing, and cost considerations regarding how much coverage you want.

Type of New Car

new car insurance 2There are a few important things to know about before you head into the dealership. The type of car you choose will have an effect on the cost of your insurance. Believe it or not, color is not one of them, but these are:

Buying or Leasing A New Car

new car insurance 3Whether you are leasing or buying your new car, you will have to provide proof of liability coverage before you can drive away from the dealership. If you already have insurance, you probably have a clause in your policy granting a 30-day window to report a new purchase. If you are leasing, you will most likely have to have more than just the minimum required liability insurance. Adding comprehensive and collision will help to ensure your lender is sufficiently covered. You can easily arrange for coverage in advance of your purchase by calling your agent and adding the car to your policy. Make sure to read the fine print on your lease so you are aware of any time sensitive conditions

New Car Cost Considerations

You may be able to purchase three key insurance coverages that will help protect your new car if it’s accidentally damaged beyond repair. These coverages are: new car replacement coverage, repair provision coverage and loan or lease gap protection coverage. To make it easier, some insurance companies will roll these coverages into one package, called new car expanded car insurance 4

new car insurance 5In conclusion, when you buy a new car, it’s up to you to inform your insurance company of the purchase and modify your policy to match. The type of vehicle you want to cover will affect your rate, and researching new car insurance can also help you decide which car to buy. Comparing quotes from multiple providers will help you be able to find cheap car insurance coverage that meets your needs.