Coverage to consider when buying a new car

Thinking about purchasing a new car? That can be very exciting. However, before you drive the vehicle off the lot, there's one person you should definitely call – your independent insurance agent. Your agent can help ensure you have the right auto coverage to protect your new ride.

Don't leave the lot without them

While these may not sound as cool as heated seats or a moon roof, you'll be glad you have these coverage options should you get in an accident.

  • New car replacement guard – if your new car is totaled within one year or 15,000 miles of purchase, this coverage replaces it without deduction for depreciation. Buy (or lease) with confidence.
  • Original equipment manufacturer (OEM) replacement – this coverage offers original replacement parts for your damaged car, from the manufacturer, for the current and previous two model years of your vehicle. Don't settle for used or lower quality parts.
  • Deductible dividends – now that you are behind the wheel of a new car, you will likely be a little more careful. Many insurance companies, including The Hanover, reward safe drivers with deductible dividends. Each year you're accident free, you receive $100 off your deductible, up to $500.
  • Rental coverage upgrade – rent as nice as you own. If your new car ends up in the garage because of an accident, you'll be able to upgrade your rental car to a luxury or large SUV while your car is being repaired.
  • And don't forget: if you've taken out a loan, your bank will probably require you to upgrade your policy to full coverage if you only have liability.

Get that "new insurance" smell

A new car will probably mean new coverage. When you're ready to shop, contact your independent insurance agent for guidance on the best combination of coverage, value and price.

Want to prep for your call? Explore the Insurance Information Institute's auto insurance terminology guide.

LC 2017-588