Buying a Car? Car Buying 101
The car buying venture is mentally stimulating, physically exhilarating, and at the end something new is found. Where else can one use all the skills within their personal arsenal - persuasion, prose, mathematics - wait this isn’t a college course schedule, or is it, this is auto buying 101.
When you purchase a vehicle you’ve got to do the research, review, review, review; vehicle make, gas mileage, warranties, and the looks (we all want good looks and a good ride). In all this fun the focus of insurance is usually minimal, just a blip on the radar until you’re cruising off the lot in your questionably insured new car.
Any car salesman will tell you that your vehicle will be insured on your current policy for thirty days, or that you have thirty days to get full coverage on your vehicle. But use some sense, don’t let your education go out the window - this is car buying 101 and you must focus. First off there are a couple factors that affect car coverage status: is the car for you or being purchased for another driver, are you upside down with your car loan, and do you want an umbrella insurance policy for cars and home.
Auto buying 101-The Facts
So now what, with all these new ideas weaving through your head, it’s easy to panic, don’t panic get the facts. If the vehicle is for you and of approximate equal worth of a prior vehicle it is likely covered however to be sure, and you want to be sure with any vehicle purchase you should call your insurance agent or call us at Killingbeck Insurance & Tax Preparation 765-452-8000.
If you are purchasing the vehicle for another driver, someone who lives with you; a partner or dare I say a brand new teen driver it makes the call to Killingbeck Insurance & Tax Preparation all the more necessary. Teens are expensive to insure due to their statistically high rates of accidents, even the best teenage driver just doesn’t have the driving experience of us veteran drivers. Because of this insurance rates may be more costly for a teen driver, so if you were planning on getting your teen a sporty, red little thing, maybe a midsize middle age vehicle is best-anyone up for a 2008 Toyota Camry?
It’s easy to be immediately upside down in a vehicle purchase, especially with lower down payments and 100% financing options that dealers offer. A dealer may try to persuade you to purchase “gap coverage,” which covers the difference between the blue book or “market value” of your vehicle and how much is owed on the loan. And if you haven’t put much or anything down and your vehicle gets totaled or stolen then the difference between the vehicle’s market worth and what you owe will be your responsibility to pay out of pocket. Depending on your financing this may be thousands of dollars. So gap coverage is imperative to cover the market value and loan differences if you’re going to be upside down right out the door, to prevent you (new vehicle buyer) from paying out on a car that no longer exists. But beware this purchase from the dealer is close to 1,000 dollars, when purchased from a reputable insurance company like Killingbeck Insurance & Tax Preparation, gap coverage costs can be reduced by hundreds of dollars.
With “umbrella policies” multiple insurance coverages are combined, so instead of paying separately on home/apartment and multiple car insurance policies all can be placed under one. The benefit of this, ease of paying, instead of paying on several policies you can pay on one and of course, cost. Cost, the ultimate dividing factor with umbrella policies costs significantly be reduced by combining home/apartment insurance and placing all cars owed by the policyholder under one policy. And this is where once again Killingbeck Insurance & Tax Preparation comes in once again we can quickly and efficiently get an umbrella policy plan set up for you. So when you are ready to purchase that car and save money call Killingbeck Insurance & Tax Preparation at 765-452-8000.
Happy car buying!