Getting a Cheaper Rate on New Automobile Insurance
Unless you’re going to buy a house or a business, the car that you buy is probably going to be the biggest buy you make at the moment, and the automobile insurance rates should have a huge effect on which car you end up choosing to buy. Instead of drowning yourself in car lot deals, look at the aspects of the car that would affect your insurance rate. Is it safe? Does it get stolen a lot? Does it have anti theft devices? How much do its parts cost?
A lot of people go to buy cars, and end up paying way too much. Many times they just need a car and feel they have no choice, but anytime you buy a vehicle you should draw up a budget so you know what you will be able to pay each month, and that budget should include your automobile insurance premium. If you don’t have enough money for a car with a monthly payment of five hundred dollars and a insurance monthly premium of one hundred, then get a different car.
You should shop for your car the same way you shop for your insurance–by comparing prices, features, and makes and models to make sure you get the best deal from the best car dealership. Having livable interest rates on your car loan is also very important.
- How much can I spend?
You need to tally up all of the monthly expenses that will come along with buying a car. If, say, you get a Ford F-150, then not only will you have to a lot for gas each month, but you will also have to pay a high insurance rate because this truck is one of the most stolen cars nationwide. Think about repairs, oil changes, gas costs, car notes, and your insurance premiums when drawing up your budget.
- Who has the best deal?
Just as you should find a car insurance company that has the best discounts, you should also look for the car dealership which will give you the best rebates and other incentives. Remember to take everything together, though, because sometimes the salespeople will pay back the rebate in another way, such as getting you ridiculously high interest rates.
- What are you trading in?
Most people trade in their old car instead of paying a down payment, or they do both. If you do this, though, you have to make sure you are getting the right credit for your trade in. Check your trade in vehicle’s value and see if the car dealership’s price matches that. Remember that there is a difference between the value when traded in to a dealership, and the value when you sell it to an individual.
- Why not drive it first?
Never bypass the test drive, even if you feel sure of the car you want. You might find that you don’t like the feel of the car you had originally chosen, and might want to consider a different one.
- Why be crazy?
Take your time when buying a car, just as you would when buying a insurance policy. Don’t freak out and buy something just because it’s awesome. Do your research.
- How not to limit yourself?
You don’t have to get your car financing through a car dealership. As a matter of fact, many of the best deals can be found through online financiers, and you can get approved for a loan and take your approval straight to the dealership.
- Where are the features?
Getting, say, electronic stability control might be slightly more expensive, but over the years it will save you a lot more money than you originally spent on your automobile insurance premium. If they offer it, get as many safety and anti theft devices as you can.
Why Does My Car Insurance Company Make Payment to the Lienholder Not Me?
As I’ve mentioned several times, I’ve got a 2007 PT Cruiser that I’m making payments on. It’s a six year loan (side note: never get a loan over four years), and I’ve only knocked off a couple of months so far, so I still have a few more years to go. However, if I were to wreck that car in some way, then I would have to deal with the dealership and the bank that I’m getting my car loan for when I make my Anaheim CA car insurance claim, even if the vehicle isn’t totaled.
This will throw a cork in your problems, because if you are still buying a car, then when you wreck it (when it’s your fault), the insurance company is going to mail you your claim check with both your name and that of your lienholder. You can’t cash it with just your signature, so you have two options.
- Mail it to the lienholder, or
- go to them.
Whatever you choose, it might be a little longer than you thought to get your vehicle back, which is why it’s a good idea to get rental car reimbursement coverage on your car insurance policy.
The first thing that you need to do is take your car up to the dealership. They will then have someone from the bank inspect your vehicle. Occasionally they will come straight to where you have your car, but this is rare and unlikely. After that, you will have to send the bank a statement from the repair shop with the bill, as will as photographs of your fixed vehicle and the insurance claim check. They sign the check, and send it back.
So your car might be all fixed and ready in a day, but until that check is signed by the lienholder, you’ll be without.
What Is GAP Automobile Insurance Coverage ?
If you think you have all your coverages straight and you’re ready to choose the best California automobile insurance policy, along I come to throw in something that will send you all out of whack. It’s called gap insurance, and most of those pages on the internet that purport to tell you everything you want to know about automobile insurance leave it out, but for anybody who is purchasing a car, it’s is a must have.
My new, 2007 Chyrsler PT Cruiser is worth about $15,000 right now according to Kelley’s Blue Book. However, I owe slightly more than $18,000 on it, and the more I pay and the less I owe…the less my car is worth! They call this an upside down car loan, because at some point (okay, at most points) during the time you are paying off your car, you will owe more for it than it is worth.
Here’s the catch.
When you total your car, and you file a claim with your automobile insurance company, the amount that they pay you to get another car is what the car is worth, period, not what it’s worth to you. So if I were to completely wreck my car beyond repair right now, my automobile insurance policy (sans the gap insurance coverage) would entitle me to fifteen thousand dollar, leaving me three thousand dollars in the red.
This is not something you want to deal with. Do you want to be without a car, and on top of that have to pay for a car you no longer have?
The way we have to solve this is to add gap insurance to your automobile insurance policy. What gap insurance does is cover the gap between what your car is worth and what you owe, so that you don’t end up paying for something you don’t get to use. A lot of car financing companies and banks that loan you money to get a new car will require you to have gap insurance, but many don’t. Mine, for example, does not require gap insurance, so if I hadn’t already known about it my car might have just gone without.
Sometimes you don’t even have to get gap coverage from your automobile insurance company. Instead, it will be part of the deal with your lease, so you’ll be covered right from the start. Here’s a couple things that you need to think about when getting gap automobile insurance:
- Usually you just get the gap automobile insurance as soon as you get the car, but if you forget or didn’t know about it, almost all automobile insurance companies will let you get at any time.
- If your lease requires gap insurance, you have to get it. No excuses.
- In order to get gap insurance, you have to have full coverage. That means comprehensive and collision coverage.
Remember that just because you have gap insurance doesn’t mean you can default on your loan once your car gets stolen or wrecked. I make my car payments on the 28th, so if I totaled my PT Cruiser tomorrow, I’d still have to make that payment on the 28th. You don’t get to stop paying until you get that gap CA automobile insurance check.
Loading ...