When you purchase a new or used car you will need to have Auto & Speciality Insurance in place before you drive it off of the dealers’ lot. If you finance or lease the vehicle you will need physical damage on the vehicle to protect the interest of the finance company. If you have an existing automobile policy check with your 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. This is especially true if the dealer arranged to finance for you.
If your agent advises you the new car will be covered the first thing you need to verify is if your policy will insure the new car for liability only or will it insure the car against physical (comprehensive and collision) damage. You will want to have this information before you go seeking a new set of wheels if you are going to make the 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.
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 company.
Additional items to discuss with your agent would be the addition of rental reimbursement, towing, and labor coverage which is usually affordable.
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.