It’s time to take your old jalopy to the scrapyard and get yourself a new car to drive. You find the perfect one, fill out all the financing information, and drive it off the dealership lot. Life is wonderful for the first month until another driver backs into your car.
When you try to make a claim with your insurance company, they are only willing to pay for certain things and not for the amount that will cover the cost of repairs for your new vehicle. Why? You never contacted them to update your policy after buying the new car. So the same insurance coverage transferred from your old rust bucket of a vehicle to your new expensive car. In addition, certain types of coverage became canceled because you forgot to contact the insurance company about the new vehicle purchase in a timely manner. This situation can leave you as an uninsured driver.
To avoid being without coverage or having minimum coverage, you should contact your insurance company as soon as possible to update your insurance policy. You can make sure to have the right amount of coverage for the value of your new car purchase.
You should also look into gap coverage or new model insurance coverage for your newly leased vehicle. While the insurance company may pay for the car if it is a total loss, you may still have to pay off the lender from your own pocket because the car is worth less than you originally paid for it due to the depreciation and lender financing. Gap coverage or new model insurance covers the cost disparity between the amount of financing you obtained to pay for the car and what the car is now worth.
For more information about auto insurance, please contact us at Lou Aggetta Insurance at 925-945-6161 to get a quote today!