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Key tips to consider while opting for new car insurance

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A new car definitely needs insurance and just paying for liability insurance wouldn’t do. This is because in most cases car owners have unpaid loans to take care of and any damages are very expensive to repair. On top of that, it is difficult to get spare parts and they are expensive even if available, when your car is from the latest line. The depreciation of an automobile takes place very soon compared to the amounts by which a loan is repaid. That is also the reason why car owners feel more comfortable with insurance protection for collisions, accidents, natural disasters or theft. Here are some tips that you could consider when thinking about new car insurance.

Do lot of shopping

If you are considering new car insurance it isn’t a bad idea to check out auto insurance quotes from various sources, to find out what the best prices available in the market are. This will allow you to negotiate better. Moreover, one car insurance provider could offer a different deal compared to another. Even if the prices are same, the benefits could be different. For example, you could negotiate for a full coverage comprising of comprehensive and collision insurance at a slightly extra price, and ensure that you are covered in all scenarios.

Don’t ignore comprehensive or collision coverage

A lot of car owners go for mandatory liability insurance but don’t go for additional insurance like comprehensive or collision coverage. Collision coverage ensures that you have coverage for damages incurred in an accident irrespective of whether the accident was caused by your fault or the other party. Similarly comprehensive coverage provides protection for damages caused to your car due to unforeseen calamities like earthquakes, cyclones and hurricanes. You will also need coverage against fires, theft or acts of vandalism. In the long run, the cost of the additional insurance is very less compared to the actual cost benefits after an accident.

You can also go for GAP insurance

GAP insurance is another type of policy preferred by owners of new cars. This insurance pays the difference between the unpaid loan amount and the market value of the car provided by other types of insurance, when your car is lost or stolen. This is ideal for those who have expensive cars and large loans that are higher compared to the actual market value due to quick depreciation of cars.