Buying a Car and Insurance

Before you purchase your new car, one of the most important calls you'll need to make is to your car insurance company. The dealer won't let you leave without proof of insurance, and it's another bit of paperwork you need to make sure you have in hand. A salesman I know had to send a poor couple away because they showed up for an evening delivery unprepared with an insurance company they couldn't call until the next morning. Not tragic, but annoying for both parties. Being prepared is the best bet, and a phone call is the best way to do that.

1.      Tell your insurance what you're buying, with all the details, and find out what it will cost to insure. Not surprisingly, this comes as a surprise to many car buyers when they realize that adding a car payment won't be the only budget change.

2.      Find out when you'll need to notify them to start covering the new car. Some insurers tell you to call them after you pick up the new car, others want you to add the new car a bit sooner. The dealer may have an idea of this timing, but ultimately, it's your responsibility to make sure you have talked to your company, you are following their policy, and you are covered as soon as you drive off the lot.

3.      Take your old car off the insurance. Call AGAIN once the car is no longer in your possession and make sure it's been done. This seems like a no brainer, but my husband and I were the idiots who didn't realize they'd been paying to insure three cars, one of which they no longer owned, for months. (Don't judge too hard, it was an old car with a really low monthly premium, and since the new car changed our amount, we weren't as aware that things didn't seem right). Thankfully our company, who we've been with for a long time, was great about it and we got most of those premiums back as a credit, but that's not a given.

Insurance is something you hope you'll never need, but with a brand new car, you want to make sure you're totally covered!


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