We often get the question “If I’m financing a vehicle do I need Full Coverage?” So we thought we would share some tips when it comes to new vehicle insurance.
- In most cases yes, usually every lienholder will require collision and comprehensive coverage but always make sure with your finance company to verify their requirements.
- Make sure you know your VIN (Vehicle Identification Number): Most insurers offer a grace period for updating your policy with a new vehicle and oftentimes you need proof of insurance before you’re handed the keys. You can start a policy with the vehicle identification number before you buy your car if you don’t have auto insurance.
- The rate of your car insurance typically goes up when you purchase a new car but some factors that will affect the price are model year, make and model, title and damage history and the amount of coverage you purchase. The factors will impact your rate for a brand new policy.
- When purchasing insurance, discuss with your agent what you will use the car for. If you use your car for business or ridesharing, you may need additional coverage.
- Add regular drivers if you have family members who use your car regularly.
If you’re planning on purchasing a vehicle soon, make sure you have this information when you contact an insurance agency:
- Lienholder’s name and address. At least two to three days of purchasing the policy or adding a new car to your existing policy.
- The VIN (Vehicle Identification Number)
If you’re currently insured with another company, you can start a new policy with us for a new vehicle when you purchase a new one. You can reach us at email@example.com or submit a request for a quote here.