Insuring New Car

New car insurance is really no different from used car insurance. As long as the vehicle is driven upon any public road in the United States, there will always be a minimum amount of liability insurance that is required. This standard liability minimum varies from state to state. Auto insurance carriers can only sell insurance in the states that they are licensed to do so in, so they should be knowledgeable and familiar with the latest state insurance regulations. A good resource to check is the local DMV website. For example, here is the California DMV’s posted minimum liability insurance for vehicles.

GAP insurance is a program is offered by some insurance companies. This optional insurance coverage is limited to new cars. Essentially it protects the vehicle owner from losing money in the event of a total loss or vehicle theft. This GAP insurance will cover the difference between what is owed on the car and what the car is worth in the event of a total or theft. This insurance can be a good option for those with bad luck!

Shopping around for auto insurance is always a smart move. Car insurances discounts abound, and insurance companies are free to determine what discounts they would like to offer at any given time. This gives them the ability to balance out their customer base with the proper mix of customers. These customers can rage from those that may need DUI insurance and may have received a suspended license to “perfect drivers” that have never had a car accident or auto insurance claim. Comparing car insurance rates can also be addictive. Once one knows that they can save HUNDREDS of dollars per year then they are sometimes more inclined to gather some free quotes online when it comes time for the next renewal.

6 Month Policy or 12 Month Insurance Policy?
Some insurance companies offer 6 month policies while others may only offer 1 year policies.
Advantages of 6 month insurance policy:

• Since the policy is technically half the life of a one year policy, the cost should be much less than a 12 month policy. This can enable the purchaser to pay off the entire amount up front, thus eliminating any potential monthly installment fees.
• Additional opportunities to shop around again. Since the policy only lasts 6 months, the insured will have the opportunity to shop for lower car insurance rate more frequently.

Advantages of a 1 year auto insurance policy:

• Car insurance premium is locked in for an entire year. If the policy holder or any other drivers on the policy receives a traffic ticket or traffic violation of any sort then the insurance rates should not go up mid term. Drivers that receive tickets often can benefit from 1 year policies.
• No need to shop around as often. This can actually be detrimental since it allows policy holder to become complacent and it may result in paying more for insurance if the person does not shop around when it comes time for the insurance renewal.

Driving without insurance in California
In short, don’t even think about it.

1. The vehicle can be towed. Towing fees and storage fees are extremely expensive. Expect to spend a minimum of 300 bucks to get the car or truck out. Some tow yards even charge for “storage” by the hour.
2. Traffic Ticket cost can range between $100 and $500 dollars. Repeat offenders can rack up higher costs. Good for them!
3. The DMV can cancel your vehicle registration. Here is the info straight from the CA DMV website: