Did you just recently trade in your older vehicle for a brand new model, or did you just take advantage of one of those huge Holiday auto sales deals at your local dealership ?
Well, don’t just call your insurance agency and request the same coverage from your older vehicle to be placed on your Brand new vehicle…make sure you ask if your insurance policy offers Full Replacement Cost coverage on your New vehicle.
Most insurance companies offer Full Replacement Cost coverage for vehicles that are less than (2) years old. They may require that the vehicle have less than a certain amount of miles, or that you are the original owner of the vehicle, but this coverage can save you a lot of money if the vehicle is ever damaged or totaled soon after the vehicle is purchased.
You can also ask your insurance agent of your insurance company offers Loan Gap coverage. If you have an accident, your insurance will pay you the current market value of the car, but not the total amount of what you owe the finance company. This leaves a GAP in your coverage, and an amount that you still have to pay. This coverage pays the difference between the market value of the car and the amount you still owe to your finance company.
The dealership will offer this coverage to you when you lease or finance your vehicle, and it could cost you hundreds of dollars if you purchase the coverage through the finance company. Ask your insurance agent to add this coverage to your auto policy if it is offered. The cost of this coverage when adding it to your auto insurance policy is a fraction of the cost you would pay at the dealership.
Remember to contact your insurance agent every time you purchase a new vehicle, and discuss your coverage with your agent so you know that your vehicle is protected.