Buying the car is only part of the decision. Before you sign the paperwork on a used vehicle, take a few minutes to find out how it will affect your insurance [source].
A quick call before the purchase can uncover issues that are easy to miss at the dealership, including a coverage change, a lender requirement, a new driver assignment, or a vehicle that costs more to insure than you expected.
Start with the exact vehicle
Ask for the vehicle identification number, or VIN, and use the exact year, make, model, trim, and safety equipment when asking for a quote. Two versions of the same model can have different repair costs, theft histories, safety features, or replacement values.
Do not rely on a salesperson’s description alone. Confirm what you are actually buying, especially if the vehicle has been rebuilt, modified, imported, or fitted with expensive equipment.
Check how the car will be used
Will it be a daily commuter, a weekend vehicle, a vehicle for a teen driver, or a work vehicle? The answer matters because the people who drive the car and the way it is used are part of the coverage conversation.
Be direct about regular drivers and the address where the vehicle will be kept. Leaving out a regular driver or misrepresenting how the vehicle is used can create trouble when you need to file a claim.
Ask about the lender’s requirements
If you finance the vehicle, the lender may require comprehensive and collision coverage. The lender’s requirements are separate from the coverage you may want for your own protection, so ask what must be in place before the car leaves the lot.
You should also ask whether your deductible is realistic for your budget. A lower premium does not help much if the deductible would be difficult to pay after a loss.
Look beyond the monthly premium
Compare the coverage, not just the price. Ask about liability limits, uninsured or underinsured motorist coverage, rental reimbursement, roadside assistance, and the deductibles for comprehensive and collision coverage.
Those options are not interchangeable, and some may not be included in the quote you first receive. Your agent can explain what each one does and where the gaps would be without it.
Before you drive away
Have the policy change or new policy confirmed in writing. Keep the purchase documents, inspection records, photos, and any list of included equipment. If the vehicle has custom wheels, electronics, a lift, or other additions, mention them before a loss rather than after one.
A used car can be a smart purchase. The insurance part should be just as deliberate as the financing and inspection.
Ashford note: Coverage, eligibility, deductibles, and lender requirements vary by policy and carrier. Ask Ashford to review the vehicle before you finalize the purchase.