Somehow, summer always seems to fly by! Labor Day is right around the corner, and with it comes some of the best car sales of the year. Before you go to buy or lease a new car though, take a minute to brush up on our car buying insurance tips to make sure you’re taking full advantage of the seasonal sales.
What your insurance agent needs to know when you buy a new car
One of the most important steps in the car buying process is informing your insurance agent about your new purchase. In Massachusetts, approved dealerships are able to process your vehicle transaction and title application through the Electronic Vehicle Registration (EVR). With this process, your information is directly sent from an approved dealership to your insurance agent to speed up the registration and title application process for everyone. Here is some of the information that your insurance agent will need to help you when you buy a new car:
- Is the vehicle new or pre-owned?
- Are you buying or leasing the vehicle?
- What make, model and year is the car?
- Will you be transferring over an existing plate or will you need a new one?
- What is the contact information for the dealership where you are purchasing or leasing the vehicle?
Additional auto insurance coverages for your new car
There are some new coverages available that may not have been around the last time you purchased a car. Make sure to familiarize yourself with them before heading to the dealership. In addition to the auto insurance coverages required by Massachusetts law, drivers should consider purchasing the following insurance options to ensure they have the coverage they need while they are on the road. For a full list, visit the auto insurance page on our website.
- Lease Gap/Auto Loan Coverage: Unfortunately, from the moment you drive your new car off the lot, its value decreases. Luckily, Gap Coverage helps cover the difference between what you owe on your vehicle and its actual cash value in case you get into an accident.
- New Auto Replacement Cost Coverage: This coverage will help you if your car is totaled in an accident; your insurance will pay to replace your car with a new vehicle of the same make and model.
- Accident Forgiveness: Accidents are a part of life. If you qualify for this coverage, though, you can avoid rate increases related to an at-fault accident.
- Substitute Transportation: This coverage will come in handy if your car is in the shop due to an accident. It will help cover rental car fees during this period of time, as specified by your policy.
- Optional Bodily Injury to Others: Extend the standard liability protection on a standard MA Auto Insurance Policy, which only provides a basic limit of $20,000 per person and $40,000 per accident, with this additional coverage. In many cases, this basic limit is not adequate to cover expenses related to an accident.
Auto insurance discounts you should be aware of
We understand that purchasing a new vehicle, along with upkeep and maintenance, can be expensive. Which is why we always recommend looking into available discounts to help lower your insurance costs. While you may know about some of the discounts available, such as bundle insurance discounts for auto and homeowners or renters insurance policies, there are many newer discount options to take advantage of. Here are some that you should consider when purchasing your new car.
- Multi Car Discounts
- Good Student/Student Away at School Discounts
- Disappearing Deductible Discounts
- Energy Saving Hybrids or Electric Car Discounts
- Advanced Driver Training Discounts
- Military Away Discounts
Remember that insurance coverages may vary from company to company, so always make sure to do your research before committing to an agent.
Here at HIG, our goal is to make your life easier while letting you rest easy knowing that you’re always protected. Give us a call today at (508) 676-5949 or visit our website at higinsuranceagency.com to learn more about how we can help with your auto insurance needs.