When you purchase a new or used car, you will need to have Automobile Liability insurance in place before you drive it off of the dealers’ lot.
Here are some important things to discuss when seeking advice from your nearest car insurance agent in helping you purchase new car insurance in California:
Finance or Lease the Vehicle
If you finance or lease the vehicle, you will need physical damage to the car to protect the finance agencies’ interest.
Existing Automobile Policy
If you have an auto insurance policy in West Hollywood, CA, you can check with your insurance agent to be sure your existing policy will cover the new car purchase. If you do not have insurance in place, the dealer will be able to help you purchase insurance by contacting or recommending a local reputable insurance agent to handle the transaction. Dealers will not let you take home a new car if it is not insured if they arranged to finance for you.
Coverage Against Physical Damage
If your agent advises you, the new car will be covered. The first thing you need to ascertain is if your policy will ensure the new car for liability only or will it ensure the car against physical (comprehensive and collision) damage. You will want to have this information before you seek a new set of wheels if you are going to purchase on a weekend when most insurance agencies are closed.
If your agent advised you that you would have the coverage for both liability and the physical damage to the vehicle, it is extremely important that you contact the agent the next business day to add the vehicle to your policy.
Many insurance companies have online services, and you can add a car insurance policy in California right from the dealers’ office.
Loan or Lease Gap Coverage
One area often overlooked or unknown to the consumer is the purchase of loan or lease gap coverage, which is generally available on your automobile insurance policy if you carry comprehensive and collision damage. Gap coverage applies to those persons who are financing and those persons who are leasing. It pays the “gap” between what you owe on the car and what it is currently worth. It does not pay for any totaled car regardless of the age of the vehicle or the amount owed to the finance agency.
Additional items to discuss with your agent would be the addition of rental reimbursement, towing, and usually affordable labor coverage.
Visit Makar Insurance Agency at 1130 La Brea Ave, West Hollywood, CA 90038, to get started on tailored car insurance coverage. Our team would like to help you with your insurance needs.