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New Car Purchase and Auto Insurance

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California Insurance
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New Car Purchase and Auto Insurance – What You Need To Know in California

After you have found the car of your dreams, it is time to find the best insurance. When buying a new car, you should have certain types of coverage. The best way to find out what kind of coverage will work for your vehicle is by talking to an insurance agent or visiting your local dealership.

The more expensive the car, the more it will cost to insure. Like many other things in life, you get what you pay for when it comes to auto insurance companies. Before making your final selection on vehicle insurance, make sure to consider each company’s reputation and service record. After all, having enough coverage may go a long way toward safeguarding your family and income in an accident on the road!

Types Of Auto Insurance You Need To Consider

When you buy a new car, you need to consider the auto insurance you want. Here are the basics:

  • Liability Coverage: If you get into an accident and someone gets hurt or their property is damaged, liability coverage pays for their medical expenses and repairs to their car. If you cause an accident that causes serious bodily injury or death, this coverage protects you from being sued.
  • Collision Coverage: This covers damage to your vehicle if it collides with another car or an item. Collision coverage is not needed by law in every state, but it is strongly advised since it may save you money on repairs.
  • Comprehensive Coverage: This covers damages to your car caused by something other than a collision (like theft or vandalism). In most jurisdictions, comprehensive coverage is optional. Still, it can assist protect against damages that aren’t covered by collision insurance (for example, if someone steals your hubcaps).

If you’re not sure what sort of vehicle insurance coverage is right for you, go to a local agent who can explain all of your options and help you discover one that matches your budget and lifestyle!

Most states require drivers to have at least liability coverage. However, some states may allow drivers to pay a lump sum fee instead of purchasing insurance.

You Don’t Have To Buy Auto Insurance Immediately After Purchasing A Car.

You may be able to wait until you get your plates before getting auto insurance. However, if you’re taking out an auto loan and the lender holds the title before it’s paid off, they’ll likely require that you purchase full coverage until the loan is paid off.

It’s important to carefully read the terms of any loan agreement before agreeing to it. In some cases, lenders may not require that you purchase insurance immediately after buying a vehicle if paying cash or via another method.

Suppose you’re financing your new car purchase. In that case, your lender will most likely require that you purchase a full coverage policy (comprehensive and collision) for the loan length. If you are leasing your vehicle, most lease agreements require that you have full coverage for the entire term of the lease. Suppose you drop these coverages before paying off the loan or returning it to the dealership. In that case, your lender will likely add these costs onto your monthly payment until they are paid off in full.

It is essential to know that it is illegal to drive without insurance in most states in America. You will be penalized if you are caught driving without insurance. Penalties for not having insurance include fines, loss of license and registration, and even jail time. Driving without insurance can result in a suspended license and registration.

Benefits Of Having Insurance Policy Add-Ons When Filing An Auto Accident Claim

If you buy add-on coverage for your vehicle, the extra money that you pay is well spent. You will have better protection, and other people in your car can also be protected. Policyholders who have additional coverage will have more options when filing a claim.

You have more protection with an add-on policy because it is easier to get compensation if there is damage or injury while you are in an accident. The add-on policy can help pay for the medical bills incurred by injuries to passengers and other drivers on the road.

With this additional protection, you will not be held responsible for the costs of another person’s medical bills if they are injured while riding in your vehicle. Insurance agents recommend buying add-on coverage so that you don’t have to worry about paying massive amounts out of pocket if something happens while someone is in your car. They need to file a claim against you.

In addition to helping cover damages caused by accidents or theft and protecting yourself as a driver from financial liability if someone else gets hurt due to negligence on your part (such as not having adequate insurance), adding extra features to a basic plan gives additional benefits like roadside assistance which comes in handy during times like broken down cars or flat tires!

Minimum Insurance Requirements In California

There are some specific minimum insurance requirements in California. These include:

  • Minimum liability insurance – covers damage you cause to another vehicle or property. This will not cover your car if it is damaged, and it will not cover your medical expenses if you are injured. However, most experts recommend purchasing more than the minimum liability coverage because the minimum amount is unlikely to provide enough protection for you.

What Are Insurance Add-Ons Available To Drivers In California?

Auto insurance is a crucial part of any car owner’s plan. This is especially important to protect drivers who get into accidents while driving without proper auto insurance. In California, drivers can take out two types of coverage: bodily injury liability and property damage liability. The former covers the driver if they injure another person in an accident. Suppose the other party is covered under the policy. In that case, you will be liable for their medical bills, lost wages, and compensation for pain and suffering. Property damage liability covers the cost of the damaged property you cause in an accident with your vehicle.

California also offers a few different auto insurance coverages that should not be overlooked when purchasing a car or new vehicle.

  • Collision insurance covers repair costs if you hit another car with your own during an accident;
  • Comprehensive coverage covers damages to your car from collisions that don’t involve another driver;
  • Rental reimbursement covers expenses for moving your vehicle to a safe place following an accident;
  • Uninsured motorist coverage protects you from paying out-of-pocket expenses if someone else’s negligence caused your accident. They aren’t covered by auto insurance (it doesn’t cover injuries).

Also, note that Arizona doesn’t require collision coverage unless you’re leasing the car. So it may not be worthwhile having it added on there as well (although collision coverage is worth having here regardless, just so that you’re prepared if/when something happens).

Uninsured/Underinsured Motorist (UM/UIM)

With uninsured/underinsured motorist coverage, you are protected if you are involved in an accident with a driver who has no auto insurance or has too little to cover the damages. While UM only covers accidents caused by uninsured drivers, UIM extends coverage to underinsured drivers. If you have this type of coverage, it is essential to know that your policy will pay for any damages beyond your state minimum requirements and what the other driver’s insurance pays out. This includes your medical bills and property damage expenses.

If another driver causes an accident, their liability insurance should cover your bodily injury and property damage expenses. Unfortunately, many states have very low state minimums for auto insurance. Some drivers choose not to purchase any coverage, meaning they may not be able to pay all of the costs associated with a severe accident.

Guaranteed Auto Protection (GAP) Insurance

GAP insurance is an optional type of coverage that will pay the difference between your car’s actual cash value (ACV) and what you still owe on your car loan. It covers the financial loss if your new or used vehicle is totaled or stolen and you owe more than the ACV. The ACV is what your insurance company would pay for the car after a total loss, minus any applicable deductible. A total loss occurs when it costs more to fix a vehicle than the vehicle’s ACV.

For example, suppose your brand new car costs $20,000 but gets totaled in an accident six months later. In that case, it may only be worth $15,000 due to depreciation. If you financed your purchase with a loan or lease agreement, the chances are that you still owe $17,000 on loan. That leaves you with a gap of $2,000 between what was paid out by insurance and what you still owe on your loan (the $15,000 replacement value minus the $17,000 remaining balance).

Collision Coverage

Collision coverage: If you are in an accident with another vehicle or object, collision insurance covers the repair or replacement of your car. This coverage is optional and expensive, but it might be worth considering if you have a higher-end car. Even if you don’t have such a car, collision coverage may be a good idea if you live in an area where accidents are frequent or there’s a high rate of theft or vandalism.

Buying auto insurance can be as straightforward or complicated as you make it if you know what questions to ask before signing on the dotted line!

By keeping a few things in mind, you can make your purchase of a new car and all of the insurances that go along with it into an exciting time.

Here are some suggestions for buying a car:

  • Do your research. What kind of car do you want? What’s your budget? Are you looking for an SUV, minivan, sports car, or eco-friendly hybrid? Will this new vehicle be used by one driver or multiple drivers? These questions will help determine the type of policy needed to cover either just yourself or numerous family members using that vehicle.
  • Shop around. Look at different insurance companies to determine who offers the best coverage at the best price. Some companies offer significant discounts depending on your driving history, credit score, and more! If you already have an auto insurance policy in place but are interested in switching providers, check out our tips for choosing between insurers! A tip is to get quotes before purchasing a new vehicle so that there are no surprises when it comes time to ensure your new purchase.
  • Don’t be afraid to ask questions! If something doesn’t make sense – then ask to clear out any confusion so we can focus on ensuring you’re satisfied. Please don’t hesitate to ask us if there’s anything else we can do or answer any other questions about auto insurance coverage options available through us today!

Need Help Filing A Claim? Call Us Today

You’ve been in an accident and suffered injuries, but the insurance company refuses to pay for the damage. Whom can you trust to get you back on your feet again?

Turn to the experts at Phoong Law. We are here for you and ready to help 24/7 with a FREE consultation. If we don’t recover compensation for you, our services come at no cost! We know how to handle complicated cases with years of experience in getting people like you back on their feet again. Call us today or message us if you want to discuss your options or need financial assistance while waiting on your case resolution. Let us help you get your life back—we have a 98% success rate in helping clients like you!

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