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How to Apply for New Car Insurance and Why You Need It


Buying a new car is not an impulsive thing. It is not like you woke up from your sleep and decided to visit your car dealer the same day. Partnered with a new car purchase is, of course, shopping for new car insurance. Most banks which will finance your acquisition of a new vehicle will require that you also buy a comprehensive insurance. It is actually for you and their security in case something happens on the road.

Comprehensive new car insurance normally has three parts: third-party liability, personal injury and collision coverage. Getting covered by all three may be expensive, yet it is advisable for your own sanity and to avoid many sleepless nights. These three are defined as the following.

1.    Third-party Liability – coverage that is required by law. It will pay for damages to property and medical expenses inflicted upon someone else other than yourself and your passengers.

2.    Personal Injury – this will cover medical expenses and reimbursements when you and/or your passengers get hurt in an accident.

3.    Collision Coverage – the insurance company will pay for the damages to your car regardless of who caused the mishap and how bad the damage is. It may be head-on collision with another car or as simple as a little dent on the fender after hitting a fence. The insurer may even pay for a new car if the vehicle is beyond repair.

When you apply for new car insurance, you will be quoted based on a number of things. One thing is for sure; your credit score and rating will be considered. A good credit standing is always a good thing and your insurer will deem you able and responsible to pay for your premium. Your previous road records will count too. A clean record, with no traffic violations and apprehensions, will most likely yield a lower rate for you. The community where you live in will also be checked. Insurance claims history of your neighbors also play a role in your premium rate. These are just some of the qualities that insurers check before they provide you with a policy proposal.

Not all companies are the same when selling new car insurance. You will be surprised to find out that some offers are much better than the others. Be wary and do not just sign up with the first proposal that comes along. Do your research, ask for quotes and review. The internet is a great resource for quotes, but be aware of fraudulent sites, too. By doing this, you will also save precious money.