If I Buy a New Car Do I Need to Add to it to my Car Insurance Policy?

Every single car you own and drive needs to be insured with adequate car insurance. This does not matter if you hardly ever drive the vehicle, if the car is 20 years old or if you just brought it home from the dealership. When you purchase car insurance you are purchasing it for the car, not the driver, which means you need to purchase more than one insurance policy for each car you drive. If you would prefer to keep all your cars insured under the same policy, then you can also choose to add your new car to your old policy through a multi policy option. This is one of the many things to consider when looking into car insurance for a new car.

Insuring a New Car

When you buy a new car you will need to purchase car liability policy insurance for it before you drive out of the dealership. Most car dealerships will work directly with a certain insurance company that can offer you a quote and insure your vehicle on the spot. While there is nothing wrong with using this option, many drivers prefer to look around and do their own comparison before settling in on the first policy offered. When you do shop around you are almost guaranteed to find a better price than what is offered through the dealership.

Multiple Vehicle Policies

Many drivers will prefer to insure their older vehicle and their brand new car together with the same provider on the same policy. This is a good option for a number of reasons. First of all, it will save you money as you are bundling your premium. You may pay $1000 for your old car and $1100 for your new car individually; however, with a bundling package you may only pay $1800 in total per year. Another thing about insuring your new car on your existing policy is that you will only need to work with one provider and deal with one policy. If you do need to make a claim this can make the process much easier as you know exactly who to call and what is included on the policy.

However, using the same provider and the same policy for two or more of your cars is not for everyone; you may find that you prefer to keep each car separately. If your older vehicle only requires basic coverage or if you want to use it as a commercial or business car, then perhaps it is better to keep this policy separate from your recreational and new vehicle which should have more coverage.

When you buy a new car you will probably be putting your older vehicle in the back seat, so to speak. You may use your older car only occasionally or you may use it as a teenage vehicle if you have children. Whatever the case, you may want to re-evaluate the insurance policy to reflect these changes. You could qualify for a low mileage discount or you may need to add your children to the policy.

Whether you choose to add new cars to policies or take out an existing plan is entirely up to you; however, take this opportunity to shop around and compare your options. Speak to your current provider to see what they can offer you in terms of a multi vehicle discount. Compare their quotes with other quotes you find online to ensure you are getting the most adequate and affordable coverage for all your vehicles.

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