When you check out late-model cars for sale, you might want to stroll through the car lots and look at all the wonderful cars that you can own. However, before you sign the papers, don’t forget about insurance. In fact, here are some important things to know about insuring your next car.
If your last car was old, you might only have liability and uninsured motorist coverage on it. This is all you need in South Carolina. However, that changes as soon as you take out a loan on your next vehicle. You need full coverage because technically, the car is not yours until you pay off the loan. You’ll need to carry collision and comprehensive insurance also.
Talk to Your Insurance Agent
Before you check out cars for sale, contact your insurance agent. Let him, or her know that you plan to trade-in the old car and you’re buying another one. Most insurance companies cover you as soon as you drive the car off the lot, but you may need to contact them first.
Here is another good reason to check out auto insurance before buying. Some cars are more expensive to insure. Here is an example.
You plan to help your teenage son buy a car. You’ll co-sign the loan and take out the auto insurance for him. However, if the car is a sports or performance car, the insurance could be terribly expensive, and you could break your budget. This is why you need to know about insurance rates before you go looking at cars for sale.
Check Your Liability Coverage
In South Carolina, you only need 25K/50K accident coverage. However, serious accidents can result in medical bills and damages over $100, 000 and you’d have to make up the difference. Ask your agent about 100/300 coverage. It’s affordable and a sound decision.
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