I Am Buying a New Car Do I Need a New Auto Insurance Policy?
Reader’s Question:
Edward here from Philadelphia, Pennsylvania. My car’s has been freaking out lately so I’m thinking of retiring it and getting a new one. Will I also have to buy new insurance for the new one or can I just use the current one I have?
Edward
Philadelphia, PA
Hi Edward, that’s a good question. My advise to you is, talk to your automobile insurance provider in Philadelphia, Pennsylvania about it. Different insurance companies will have different rules about this. Here are a few things to note if you want to carry over your current insurance to the new car. Your new car will be covered for the same amount that your old car was covered. If it’s a pretty old car, I’m pretty sure you went the economical route and got just the minimum coverage amount required by law. This exposes you to greater financial risk if something unfortunate does happen. Also, your dealer or financer, (read: loaning agency) will most likely require you to buy additional insurance for the car. This would be your collision insurance to cover repairs for damage to your car if you get in an accident. You will most likely also need comprehensive insurance to cover most anything else that could happen that will cause you to lose your car or for it to be damaged.
The insurance companies have different policies and restrictions on replacing or adding vehicles under an insurance policy. Some extends the coverage of your insurance to the new or added vehicle for a couple days, while some give you more lee way. The main thing is, do update your policy as soon as possible to avoid possible financial blunders caused by little or no insurance coverage.
I Have SR22 Insurance – How To Get Insurance For My Teen Driver?
Q: My teenage son will be getting his license this coming May, so I want to get him a car so that he can drive to work and help pay the insurance. What kind of car is best for a teen who is a first time driver and won’t affect my SR22 rates too badly?
A: The key to getting excellent SR22 rates with a new car is for you to avoid doing just that–buying a new car. Although newer vehicles can be tempting, especially for teenagers who are fascinated with the idea of getting a car for the first time, the more your car is worth, the more you will have to pay to insure it. While you’re financing a car, you’ll need to have collision coverage, so your car insurance company will want to charge you more just in case it will have to pay to replace your car if your teenager should total it. So, the main key to good SR22 rates with a new car is for you to keep it cheap–stay away from new and high priced used cars.
Even though you may be getting a used car in order to save money on your SR22 rates for car insurance, since you are insuring a teenager you don’t want the car to be too old. Teenagers are notoriously dangerous drivers and very high risk, so you should get a car which is new enough to have many of the latest safety features installed. Try to get something which is at most 5-7 years old, so that it will be safe for your son to drive and will last him awhile. He’ll be able to offer you more help making payments the cheaper the car is, too.
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