Tag Archives: buying a new car

How Long Do I Have to Purchase Car Insurance After Buying a Car?

Car insurance can be complicated if a person does not have a good agent to help them through the process. How much do you need?  When do you need to buy it?   Can it be added to an existing policy? This article won’t answer all your questions.  It will, however, help answer the question of how soon you need to buy insurance after you purchase a car.  The answer can depend on where you purchase your car, your state laws and the existence of any other car insurance policies you may have.

Driving off the lot
Many car lots will not even allow you to drive off the lot with a car until you have insurance.  This is more to protect them than protect you. They want to make sure the car is covered until it is paid in full. There is also likely to be a requirement as to how much insurance you need.

From a private owner
A private owner will most likely not care whether you have insurance or not since you will be taking title of the car right away.  In this case, you may have two weeks or so, depending on when the temporary tags expire.  It is then likely that you will be required to show proof of insurance before you will be issued permanent tags. This is definitely the case in states that require all drivers be covered under some kind of car insurance.

Existing policies
Car owners who have existing insurance policies will need to talk to their insurance agent. Some policies have a grace period during which the new car is covered under the existing policy. These grace periods vary in terms of their duration, so it is important to carefully review your policy. Other policies do not allow this at all. Your insurance agent can help you determine whether you are covered or not and how long you have before you need to get the additional car covered.

State laws
Most states have some type of car insurance regulations in place and they may differ from the requirements of the dealer where you purchase your car. In all cases, it is better to check in advance with your state Department of Motor Vehicles to find out their requirements. Once you know the State’s requirements, you will be in a better position to comply with them. Unless the dealer requires insurance before allowing you to take possession, state law is the standard, and that will likely mean you need to secure car insurance before you can be issued permanent tags for your car.

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4 Tips for Purchasing a New Vehicle

Changing your car can seem like a daunting process with so many factors to take into account and countless options to consider before you find what’s right for you. While it may seem like a tricky task, a new addition to the family and the need for an extra seat or the unwelcome sound of a rattling engine can ensure it is a necessary change to make. MC900440349

It’s important to know how to approach the whole car change process, particularly from an auto insurance point of view, as insurance can often become the deciding factor in any deal. Whether you’ve been through it before or you’re buying your first car, here are 4 tips that can help you ensure a pain-free car change:

1) Requirements: – The first question you need to ask yourself when setting out to change your car is: “What do I need?” It might seem like a simple question, but there’s plenty of answers.

Consider the location where you’re most likely to use your car. If you’re going to spend most of your driving time in the city, then there’s probably no need for a large 4×4 for off-road travel. Similarly, if you’re going to be doing a lot of country driving, a 1.2l hatchback may not be the mopst suitable choice of vehicle.

Location can determine a lot but knowing how long you’ll need the car for, how many days a week you’ll need it, the average daily/weekly distance you’ll be travelling and the number of passengers you’ll have to carry are all determining factors that should get you thinking before you take a trip to the local dealership.

2) Budget: – Everything we own depends on our budget. From the size of our house to the shoes on our feet, spending depends on budget and changing your car or buying your first car is no different. Before you start browsing, be sure to know how much you can afford to spend on a new car – or if you can’t afford a new car, why not consider a second-hand car?

Once you’ve settled on your budget, you can begin to consider your options, however the cost won’t end there. How much will your car insurance coverage cost? How many people will your car insurance cover? How much will it cost you to tax the vehicle? What about maintenance costs? The price of petrol/diesel? These are all financial factors you have to consider before you commit to a new car. It may require thinking ahead but it will be worth it in the long run.

3) Dependability: – Once you know what you need and what you can afford, you can start to look at reasonable options. Consult your local dealership or if your considering online car trade, source highly-rated classified ads sites and start from there. There will be thousands of options of both new and old cars that may fit your requirements and suit your budget, but there is one other factor to consider which can help whittle the mass down to a number of frontrunners.

Dependability is something we all look for when making an investment. It’s a crucial part of the risk management process that helps you to assess the potential value of a decision. If you’re setting out to invest in a new car, you have to think about its dependability and how well the model serves both your requirements and your budget. If you’re after a car for country driving and long-distance travel, think about the mileage and how dependable your car will be after 6 months on the road. If you’re looking for something for recreational travel that you won’t use that often, why spend more than you need to on a car with low mileage? Other comparative factors such as handling, appearance and the motor condition of the car can help you narrow down your options.

4) Trade-in Vale: – The final thing to consider before you sign on the dotted line is the trade-in value of the car. This comes back to assessing your requirements and what you need. How long are you planning to use the care for? 3 years? longer? Determining the potential use of the car can go a long way in helping you equate its trade-in value. If you want to buy a car that offers good trade-in value then the newer the model and the lower the mileage the better. Whereas, if you have little or no intention of trading the car and and maybe intend on passing it on to a friend or another family member or even selling it privately, trade-in potential shouldn’t be your biggest worry.

While buying a new car can seem like quite a demanding venture, a comprehensive risk management strategy taking into consideration your requirements, budget, car dependability and its trade-in value can greatly help you make the right decision. Once you’re happy and you’ve settled on your chosen vehicle, you’ll have to think about car insurance and what sort of plan best suits you.

If you’re considering upgrading your car and have a question about your car insurance policy, ask an expert for free.

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