Has this ever happened to you? You made the decision to purchase a new vehicle, got it home, called and added it to your insurance, and then realized that your monthly insurance premium just did a big jump UP?
This can be stressful if you’re not expecting it! Here are a few things to keep in mind before you sign on the dotted line.
One important thing to remember when purchasing a new vehicle is that the salesperson wants to make a sale.
Unfortunately, they might lead you to believe that this model of car has cheaper insurance than your old one, even if they don’t know for sure! For a long time, there was a myth that red cars cost more than other colors to insure, but it’s just not true.
Some dealerships will offer car insurance at their location and may give you a general “quote” on the cost, but this can be unreliable as well. The information may assume a better credit rating or driving record than you have, leading a rate hike after the sale.
You want to research the vehicle costs on your own first and verify them. Don’t just go by the information you receive at the dealership.
If you’re making a huge jump in vehicles, prepare to pay more for insurance. If you have an older vehicle that currently is insured for liability only, and you’re upgrading to brand new vehicle with a loan on it, you’ll be looking at higher costs.
Some lienholders also require that you carry a $500 deductible on your new vehicle, which can make a difference if you’ve had a higher deductible in the past.
Here’s the best advice we can offer! BEFORE you purchase the vehicle, write down the year, make, model (and even VIN number if available) and call us.
We’ll go into your current policy and put in that vehicle to give you an EXACT cost. If you’re trading in another car, we’ll remove that one too.
We won’t officially make the change until you confirm it, but this will take away any surprises. You’ll know exactly what your pro-rated premium will be and can make an informed decision on if that vehicle is the right choice for you. If you’re comparing several, feel free to call with them all! That’s the benefit of having a local agent!
Zappia Insurance & Financial Group
Du Bois: (814) 371-4901, Pittsburgh: (412) 265-6383