Buying a car is an awesome but excruciating task - the excitement of the new car with the unease of "did I make the right choice"? And, if it is a used car, will it run a week from now! And, you are getting down to the day when you're going to pull the trigger. You are ready to make a move and drive the new ride home.
But did you call your insurance agent to make sure you and your new car are covered as you drive off the lot?
There are actually quite a few aspects to consider when you purchase a new or used car. Some of them are to ensure that you have insurance protection, others can save you quite a bit of money.
A quick phone call to us at Huggins Dreckman Insurance before you go out to buy can give you the head start you need to stay in control.
Car Dealer says you have 30 days to insure your new car? Beware! It’s not always true!
So you’ve found the car that you like, and you are sitting down to do the paperwork. As you pick up the pen, it occurs to you that you forgot to call your agent to get insurance for your new car. No! It’s Saturday afternoon, you are exhausted and tired and you just want to drive it home. But along comes your car dealer with some fabulous news: "You have 30 days to add it to your insurance plan," he says.
So there's no need to fret...Right?
Unfortunately, that’s not quite true. There are indeed situations when you have 30 days to add the new car to your policy. But there are far too many variables to give a simple rule explaining when the 30-day cushion applies and when it does not. For example, it might work when you trade a vehicle but it may not be applicable when you buy an additional vehicle.
Your safest bet: Don’t rely on the 30-day advice. Get your insurance now!
If you are beginning to think about buying a new car, give your insurance team at Huggins Dreckman Insurance a quick call right away and we’ll set you up right. We'll make sure that when you finally go to buy your new car, you don’t have to worry. It’s as easy as that. If you buy a car on impulse, then call us as soon as you can - first thing Monday morning or, if your insurance company is Safeco, call 877-857-9505 to get the car added to your existing policy.
Car loan “upside down”? Get the insurance, but not from the dealer.
As you purchase you new car, you may be presented with the option to buy an auto loan/lease or “gap” coverage. “Gap” coverage is needed when you are “upside-down” on your car loan. This can happen if you take on a loan with a zero or low down payment, financing most of the car’s cost. Cars depreciate incredibly fast, and as a result, the amount that you owe on the car may quickly be far greater than its fair market value.
This can become a problem if your car is totaled after an accident or theft. If your car is a ‘total loss’, your insurance company is only obligated to pay for its fair market value. If the amount you owe on the vehicle is more than the market value, you might find that you need to pay additional money (sometimes thousands of dollars) just to pay off the car loan (even though you can’t even drive the car anymore!)
That’s what “gap” coverage is for. It pays for the difference between the market value of your car and the amount you have left on your loan. We absolutely believe that you should purchase “gap” or auto loan/lease coverage on every lease!
But: We recommend that you purchase this coverage through your auto insurance company. Insurance companies usually charge between $50-70 per year for this protection. If you purchase “gap” coverage through your car dealer, you will usually be charged a lump sum of $600-800. Often, this will be rolled into your financing and you will also be charged interest on it for the entire life of your loan! If you purchase “gap” coverage through your auto insurance, you can drop it when you are no longer “upside down” on your loan.
Complicated? No worries. Call your Huggins Dreckman Insurance reps at 562-594-6541, and we will set it all up for you. As soon as you are ready to buy…call us before you sign the contract!
Buying a used car? If it sounds too good to be true, it probably is.
Maybe you did your car-shopping online, and you found a great deal on a used car. Low mileage, good condition, and after the test-drive you find it runs like a charm. The price is good, too. In fact, it's great! They could get much more for this if they wanted to...
Wait . . . . . Why don’t they?
The caveat with used cars is often that you can never be really sure what has happened to them. So you rely on the honesty of the previous owner…or you get a vehicle history report. Various providers offer these reports online for a fee. And, whenever you have the chance, take the car to a trusted mechanic before you finalize the purchase.
Buying a car for your teen? Read this.
You want to help your children with a car. They now have their licenses, and they have been driving your cars - as occasional operators - on weekends. But, they want the mobility that a car gives to them - and they want it every day. So, on Saturday, you buy the neighbor's older muscle car which always sounds great as it leaves the driveway. And, you read our information about buying cars without talking to us first, so you kept the car in the garage until you added it to your policy. You did good.
The surprise comes Monday when you call your agent to add the new car to your insurance plan.
How Much is this going to Cost???
Young drivers in combination with new, sporty vehicles or older muscle cars make for an expensive mix when it comes to your auto insurance. This is not a personal offense against your teen (who might be a very good driver). But studies have proven again and again that young drivers are the highest risk on the road. And insurance companies will rate young drivers as high-risk drivers, because they simply have not yet gained the experience of older drivers.
Additionally, sports cars by their very nature tend to encourage speeding which makes for increased insurance rates. Brand new models, older high performance cars, and models types like SUVs and 4X4 Trucks may also trigger higher rates.
If you are looking to buy a car for your teen, we recommend that you opt for a midsize, slightly older and reliable car with safety features such as airbags or anti-lock brakes. Older cars are generally less expensive to insure because they are less expensive to repair.
And remember, you can always give us a call for more advice or sample rate quotes!
Thinking about co-signing on a loan? We don’t recommend it.
Your grown-up daughter, who’s been living on her own for a couple of years, was just laid off from her job due to ever-present budget cuts. As if that wasn't enough, her trusty old sedan just broke down as well, this time for good. Luckily, she has interviewed for a new position and things are looking pretty good...but if she gets the job, she will need a car to get herself there every day. Without a car, she can’t take the job. And even with the new job, adding a car payment to the budget will make things tight...very tight.
So, you consider helping her out by co-signing a car loan. DONT DO IT!
When purchasing and financing a car for your adult child, think twice: If you co-sign on a loan for a car that your son or daughter will be driving, you may be held liable if an accident occurs – even if you weren’t driving and even if the car was not listed on your insurance policy.
Why? Because liability follows the registered owner(s) of a car. If you are listed as a registered owner (which you are, if you co-sign), you can be held liable in case of an accident, and your assets are in jeopardy, often for the life of the loan.
So what can you do if you’d like to assist your child by helping him or her buy a car?
From an insurance standpoint, rather than risk your assets by co-signing, the best solution is to give financial support but to register the car in the child’s name only.
Keep in mind: This advice only applies for young adults who are no longer your dependents. If your child is still a dependent, lives in your household, and/or is continuing his or her education, families will often find the broadest coverage and best insurance rates by keeping registration and insurance in the parents’ names.
One-Stop Insurance Shopping
Buying a new car is very exciting! Get on the right road - get going in the right direction - with Huggins Dreckman Insurance and call us before you head out to the dealer or buy a car from a friend or neighbor. We'll ensure that you get great protection at the best rates, plus all the operator and policy discounts you and your teen deserve. It just takes one call - and isn't that a lot less hassle?
Contact us today 562-594-6541. We’re here to help!