Essential Insurance Tips for New Car Owners

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Understanding New Car Insurance Grace Periods

When purchasing a new car, it’s crucial to understand the insurance requirements and grace periods associated with your new vehicle. At O1ne Mortgage, we aim to provide you with the best mortgage services and ensure you have all the information you need. For any mortgage service needs, call us at 213-732-3074.

What Is a New Car Grace Period?

Before driving your new car off the lot, you may need to show proof of insurance, especially if you’re financing the vehicle. However, you might not need to add the new car to your policy immediately. Many auto insurers offer a grace period, typically ranging from seven to 30 days, during which your new vehicle is covered under your existing policy. This period can vary by insurer and state, and different rules may apply to leased vehicles.

If you don’t have existing insurance when buying a new car, there is no grace period, and you’ll need to obtain coverage before driving the vehicle.

Insurance Requirements for New Cars

Most states mandate some form of car insurance, but the specific types and amounts of coverage can vary. If you have an auto loan, your lender may also have specific insurance requirements.

Liability Coverage

Liability insurance is the most commonly required coverage, protecting you if you cause bodily injury or property damage with your vehicle. However, minimum liability coverage may not be sufficient, so consider the right amount of coverage for your needs.

Underinsured and Uninsured Motorist Coverage

This coverage protects you if you’re in an accident with an at-fault driver who lacks sufficient insurance. It covers your vehicle damage and medical bills. Requirements for this coverage vary by state.

Medical Payments Coverage or Personal Injury Protection

Some states require either medical payments coverage or personal injury protection (PIP). Both cover medical bills regardless of fault, but PIP also covers lost wages, child care expenses, and other costs.

Collision and Comprehensive Coverage

While not required by state law, collision and comprehensive coverage are often required by lenders if you finance your vehicle. Collision insurance covers repairs or replacement if you hit another vehicle or object, while comprehensive insurance covers damage from fire, hail, vandalism, theft, natural disasters, and more.

How to Buy Insurance for a New Car

If you already have an insurance policy, you can add your new car by calling your insurer or logging into your online account. This may affect your premium, especially if the new vehicle is more expensive or carries additional risks.

If you’re buying a new policy or switching providers, follow these steps:

Request a Quote

Get an auto insurance quote online, over the phone, or in person. Provide personal information and vehicle details for an accurate assessment.

Review Coverage Options

Examine the suggested coverage options and amounts, and adjust based on your budget and needs. Check for available discounts to save money.

Shop Around

Compare insurance rates from multiple providers, ensuring you enter the same coverage amounts for accurate comparisons.

Finalize Your Policy

Choose the best offer, set your coverage date, select a payment plan, and provide payment information to finalize your policy.

Save Time While Shopping for Coverage

Even if you’re satisfied with your current auto insurance, it’s beneficial to shop around periodically to ensure you’re getting the best rate. With Experian, you can compare quotes from multiple insurers at once, simplifying the process and making it easier to switch providers if needed.

For any mortgage service needs, remember to call O1ne Mortgage at 213-732-3074. We’re here to help you with all your mortgage needs!

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