Buying a Car
There are actually quite a few aspects to consider when you purchase a new or used car when it comes to insurance.
A quick phone call to us at WHINS Insurance Agency 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!
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 won’t 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 WHINS Insurance Agency 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.
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 need to pay additional money to pay off the car loan.
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” 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.
Buying a used car? If it sounds too good to be true, it probably is.
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. Even better, if you call your trusty insurance agent (818) 233-0825 you can get it for free!
Be smart. Call WHINS Insurance Agency before you buy your car.
Buying a car for your teen? Read this.
Young drivers in combination with new, sporty vehicles make for an expensive mix when it comes to your auto insurance.
This is nothing personal 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 and vehicles like SUVs and 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.
When purchasing and financing a new or used 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.
One-Stop Insurance Shopping
Buying a new car is very exciting! Get yourself cruising right by giving our team at WHINS Insurance Agency a call before you head out to the dealer. We can make sure you get adequate protection at the best rates, plus all the discounts you deserve. One quick phone call – much less hassle. Isn’t that the way to do it?
Contact us today (818) 233-0825. We’re here to help!