Is there anything more exciting than driving off a car lot with a brand-new car? You’ve got the new car smell, all the new controls to explore, and a smooth ride to show all your friends.
In those first months of new car ownership you may park in the farthest spot of the parking lot to keep your new car safe, and that’s okay. Even with this and the other extra precautions you may take, a new car purchase is a great time to review your current auto insurance policy. A new set of wheels could warrant a few changes to your policy. Here are a few things to keep in mind when you review insurance for a new car:
1. New Car Replacement Coverage
New car replacement coverage can give you some peace of mind when you hit the road with a brand-new car. If something happens and your car gets totaled in an accident, you won’t have to settle for anything less than a new, similarly equipped vehicle. To qualify for Say’s New Car Replacement Coverage, the following would have to hold true:
- The damage was caused by an accident covered under the Collision or Comprehensive coverage.
- You (the insured) are the original owner of the vehicle.
- The vehicle was purchased within 12 months of the accident.
- The vehicle had less than 15,000 miles at the time of the accident.
At Say, we include New Car Replacement with both our Comprehensive and Collision coverages, but not all companies do. So check with your provider about this coverage to see if it is included, or if it is something you can add on when you get that shiny new car.
2. Comprehensive Coverage
If you don’t already have Comprehensive coverage, you’ll want to look into it for your new car insurance coverage. The coverage protects your new car against vandalism, theft, and acts of God (like hail). While acts of God can happen to any car, you’ll want to have some extra protection against the vandalism and theft aspects when driving the new ride around town.
In 2016, FBI reports estimate that there were 765,484 auto thefts nationwide. And, there was an uptick in thefts by 6.6 percent in 2016. Comprehensive coverage can help provide some extra protection for your wallet in case something does happen.
3. Collision Coverage
Collision coverage will help to fix or replace your car after an accident, regardless of who is at fault. Keep in mind that Collision is an optional coverage, but many times lenders will require it if you are financing your new car.
To determine if Collision is worth the cost, we suggest looking at the numbers. If you have an accident, you would only pay the deductible to repair or replace your vehicle. At Say, we offer deductibles ranging from $250-2000 for new car insurance policies. So a deductible at any of those ranges wouldn’t seem so bad to fix or replace a brand new vehicle.
4. Uninsured Motorist Property Damage
Uninsured Motorist Property Damage coverage (UMPD) is important to have with any car, but can be especially useful for a brand new car. UMPD will help you pay for damages to your car if the at-fault driver or owner of the car that caused the accident is without insurance (or without enough insurance). And since 13% of motorists were uninsured in 2015, the odds of getting hit by an uninsured motorist are higher than we’d like.
If you have Collision coverage with Say, you should be covered if someone driving without insurance hits your car, but if you don’t have Say’s Collision coverage, you’ll want to look into UMPD and potentially add it onto your policy for some extra protection. The deductibles for UMPD are on the lower end of things, so it is a low-cost option for your ease of mind.
Diving into details around insurance for a new car may not be the most fun way to spend your time, but you’ll be thanking yourself if you do get into an accident in your shiny new car. We want you to be back on the road in no time if that happens, and these coverages will help make that happen.
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Posted July 18, 2018 in insurance know-how.