Buying your first brand new car is a financial achievement that many people long for. It’s very exciting to be the first and only own of a shiny new car. There’s nothing better than that new-car smell which you can never get back so enjoy it while it lasts. It’s normal for people who’ve just purchased a new car to be super anxious and cautious about driving and parking their vehicles. It’s important to have the right coverage to protect this huge financial investment, and your insurance broker can help Claremont, Oklahoma residents select the perfect policy.
Your choices for auto insurance will be greatly affected by how you purchased your car. If you paid for the car “in cash,” meaning you paid out of pocket for the entire cost, then you have the greatest control over how you insure your car. You’ll have to take out the state minimum liability policy but the rest is up to you. If you used a lender to finance the car, then you will most likely be obligated to purchase a full suite of coverage to protect that bank’s investment as well as your own. These insurance policy types are:
- Liability - This coverage is required by law in almost all 50 states. It covers the other driver’s damages should you cause an accident with your car. It will have a minimum coverage set by the state and you can purchase additional insurance if you’d like for property damage and medical costs.
- Collision - This coverage helps to cover damage to your car caused by colliding with another car or object. Collision insurance is especially helpful when there is no other driver involved in your accident such as single-car collisions.
- Comprehensive - Comprehensive coverage protects you from unexpected auto damage from natural weather events or from theft.
- Underinsured/Uninsured Motorist Insurance - Not required in all states, but this policy protects you in the event you are hit-and-run or are hit by an uninsured driver.
- Gap Coverage - Once you drive your brand new car off the lot it starts depreciating in value quickly. Gap coverage helps protect you from financial loss if your car is totaled and isn’t worth the amount of money you still owe the bank. Let’s say you owe the bank $30,000 on your car loan and you get in a devastating accident for which insurance totals the car and pays you the current value of $20,000. You’ll be on the hook for that remaining $10,000 cost yourself if you don’t have gap insurance.
Having the right amount of car insurance is critical to protect you from lawsuits and from draining your bank account in the event of an accident. Cars are an expensive investment and insurance is the best way to eliminate or lessen the risk of driving and owning an automobile. Your insurance broker can help you find the best coverage for the lowest monthly payments that you can afford.