When you purchase your new vehicle, you need to be sure that you take new car coverage into consideration. While the car dealership will be able to give you a general idea of which vehicles cost more to insure, they will not provide specifics on general auto insurance coverage. The dealership will, however, be knowledgeable regarding special insurance, such as GAP insurance. GAP car insurance is a separate type of insurance and can usually be obtained on new or even on many used vehicles at the time of purchase. The decision to buy this additional insurance is usually a different matter from finding out about changes to your car insurance.
One of the first things that you should do if you are at the dealership and have decided to purchase a new vehicle is to call your current insurance agent. You need to let your insurance agent know that you are purchasing a new vehicle, and let them know if you will either be keeping your old car or trading it in. At this point, your insurance agent will need to give you a car insurance quote over the phone. You can often have your new vehicle covered by your current auto insurance company before you even leave the car dealership.
The type of new car coverage that the car dealership is likely to be quite well versed in is GAP car insurance. GAP is the type of insurance that will be a good purchase for many new car buyers, since it covers you if your car is stolen or is totaled in a major accident. If, for example, your car is involved in a serious accident resulting in the car being totaled, your car insurance will pay the current blue book value of the car. However, this is rarely enough to cover what you will still owe. If you have just purchased the car, it is highly likely that you will be thousands of dollars in debt on a car that can no longer be used if this were to happen. GAP insurance will then fill in that void. If your car insurance will cover $10,000, and you still owe $13,000 on your vehicle, GAP will pay the difference.
Many new car dealers will offer you this type of insurance at the time you purchase your car, and sometimes it is even possible to add the insurance into your purchase contract. By including it as part of your new car purchase price, the GAP insurance can be paid over a period of time, just as with your new vehicle.