10 FAQs when insuring a Brand New Car

In·sur·ance – noun – a coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.

To put it simply, insurance is the assurance of compensation for certain unexpected losses that may happen in the future. We are aware that there are varying types of car insurance designed for different kinds of conditions. But what are those certain “conditions” that you need to know and understand? Here’s a simple checklist.

Insuring Brand New Car

1) When to get insurance quotes?

The best time to look for insurance is prior your buying of a car, especially if you are frugal and practical. If you are not very particular with the brand or make of the car, shopping for insurance may curtail your options and help you decide which car best fits you.

2) Talk to your agent face-to-face.

The Internet is a crazy comfort zone to many. Everything comes with just a few clicks, but some things are better done the old-fashioned way.

3) Know what you are paying (or going to pay) for.

Shop around and find the best deal. Does a high premium already mean better insurance? What are its inclusions? Nobody wants to be surprised in times of peril. It isn’t wise to hope for something that may not be even there to begin with.

4) Inquire about discounts.

Sales agents live on commissions, and whether we like it or not, there are sales agents who place astronomical bucks on top of the regular premium. Inquire for the possible discounts you can acquire. This is most advisable if you are insuring a brand new car.

5) Full amount vs. installment.

Pay upfront the whole amount if you can afford it. Chances are, you are going to pay a much lower amount as compared to amortizing monthly. If the budget is tight, check on the total amount you are going to pay within the tenor. From there, you can compare if you are going to pay too much or just right.

6) Reconsider the policies in your garage.

Purchasing a brand new car feels awesome. But then again, you’d still have your old, trusty car that you refuse to dispose of. Let’s admit the fact that paying the same premium for both cars may be too costly considering that your old car may not need that much insurance. Maybe you can lower the premium for the old car and increase the premium on the new one.

7) Rely on trusted names.

Check client reviews on well-known, competent companies.  They are “well-known” for a reason. Which brings us to the next point.

8) Be careful of too low/too many premium discounts.

Beware of fly-by-night companies. Why are they giving too many discounts on premiums? You don’t want to waste your hard-earned money on suspicious, too-good-to-be-true offers like that.

9) Keep your credit history clean.

Reporting too many road incidences may result in companies declining your application for insurance. If you, as a client, do not want fly-by-night companies, insurance companies also do not want to grant their profits to reckless drivers. At the end of the day, it is still about money and the advantage foes to them in the way that you are the one paying for their service.

10) Drive safely.

Paying for your car’s insurance does not give you the license to drive recklessly. Just because you know that someone is going to pay for whatever damage you may incur does not give you the guarantee that you are also freed of the possible trauma you may suffer. Driving requires more than the skill to navigate around the city and to perfect parallel parking. It entails full responsibility on your actions on the road.

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