Tuesday, September 29, 2009

How Soon Should I Let My Auto Insurance Company Know I Bought a New Car?

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How Soon Should I Let My Auto Insurance Company Know I Bought a New Car?
By Michael F. McDonough

There's nothing quite like the thrill you get from smelling that sweet, new car scent. Something about knowing that gleaming new beast sitting in the dealer lot is going to be going home with you is enough to send tingles up your spine. Before you grab those keys and do your best Transformers impression, however, take a second to figure out what you need to do with your auto insurance.

It's definitely the exception rather than the rule, but there have been cases of cars getting into accidents the minute they drive off the dealer lot. The last thing you want is to become one of those statistics-but if you do, wouldn't it be nice to know that your auto insurance provider is standing right behind you to pick up the slack?

Before you start panicking too much about driving uninsured, take a second to check out the terms of your car insurance policy. Auto insurance companies know that you're going to be driving the car home the day you buy it. They also know that without the car and its detailed little packet full o' feature information you're going to have a very hard time giving them the kind of run-down they need to accurately price your insurance. That's why many companies give you a certain number of days to report a new vehicle. Until then, it's automatically covered by the same policy terms as your old clunker.

Wait! Before you kick back in the driver's seat and cruise on home without a worry in the world there are a couple of things you need to look into. First and foremost, make sure your insurance company actually follows that policy. Most isn't all, and the last thing you want to do is find out after the fact that you're a sitting duck. Secondly, consider how you're going to be paying for your car!

What does your payment have to do with anything? With today's stretched economy not a lot of people are plunking down cash for new cars. They're choosing to be sensible and finance them, trading out months of interest in exchange for a car payment that isn't going to have them living on Ramen for the rest of their lives. The thing is, most lenders are a little bit...twitchy about making sure they're going to get their investment back. The last thing they want to do is lend you the money for a car only to have you total it a few months down the road, then decide not to keep paying on it because you've just added a new car payment to the mix.

That's why most lenders are going to make you put comprehensive, collision and uninsured motorist insurance along with your liability auto insurance. That way, no matter what happens to the car you're still going to get a hefty payment to at least put a dent in your loan before you go shopping around for another one. If your current policy only carries liability you're going to want to make sure you call whichever of the hundreds of auto insurance companies you're currently doing business with and add the newest addition to the family to your policy before Murphy's Law has the chance to strike.

You know it's just lying in wait. Why give it the opportunity?

Michael McDonough is a National Account Executive for QuoteScout.com. Since its launch in 1996 the company has specialized in matching consumers' requests for insurance quotes with multiple insurance quotes from both local agents and national insurance carriers. To find out more about buying auto insurance for your new car, visit them on the web at http://www.QuoteScout.com

Article Source: http://EzineArticles.com/?expert=Michael_F._McDonough




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