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Buying a Car

What to do when Buying a Car

There you are, out buying a car on a sunny Saturday morning. Whether it’s your first car or your fifth, you can’t help feeling the bubbles of excitement as you stroll across the lot, coffee in hand, looking at all the different cars.

Of course you know what you want. Kind of. You’ve done your research! You have an idea what type of vehicle you need, looked into your financing options, made up your mind on whether you’ll buy a new or used car, and read up on gas mileage, crash test and safety ratings. You even know what color you’d like.

Today is the day. You are ready to make a move and drive the new ride home.

But did you call your insurance agent to make sure you and your new car are covered as you drive off the lot?

There are actually quite a few aspects to consider when you purchase a new or used car. Some of them are to ensure that you have the right car insurance protection, others can save you quite a bit of money.  Did you know that bundling your auto insurance with your home insurance could save you up to 25% on the total bundle cost?

A quick phone call to us at Huff Insurance before you go out to buy can give you the head start you need to stay in control.

Car Dealer says you have 30 days to insure your new car? Beware! It’s not always true!

So you’ve found the car that you like and you are sitting down to do the paperwork. As you pick up the pen, it occurs to you that you forgot to call your agent to get insurance for your new car. No! It’s Saturday afternoon, you are exhausted and tired and you just want to drive it home. But along comes your car dealer with some fabulous news: “You have 30 days to add it to your insurance plan,” he says.

So there’s no need to fret…Right?

Unfortunately, that’s not quite true. This varies from company to company/.  There are indeed situations when you have 30 days to add the new car to your policy. But there are far too many variables to give a simple rule explaining when the 30-day cushion applies and when it does not. For example, it might work when you trade a vehicle but it won’t be applicable when you buy an additional vehicle.

Your safest bet: Don’t rely on the 30-day advice. Get your insurance now!

If you are beginning to think about buying a new car, give your insurance team at Huff Insurance a quick call right away and we’ll set you up right. We’ll make sure that when you finally go to buy your new car, you don’t have to worry. It’s as easy as that.

Car Dealer says they will take care of calling your insurance agent to add your new care to your car insurance policy.

As you are finishing the deal, you realize that you need to call and add your new vehicle to your auto insurance policy.  That’s where your friendly dealer steps in and says no worries, they will take care of calling your agent and making sure the car is added to your insurance policy.

Again, no need to worry, right?

Wrong!  The main issue with this is that the car dealer is not a party to your insurance contract, therefore, has no right to request changes to your auto insurance policy.

Another issue is that sometimes they simply forget to call.  If this happens, you may not realize that your new car is not insured until it is too late.  This could leave you holding the ball should you have an accident that is not covered due to the fact that nobody called your auto insurance agent or company to add the vehicle.

We at Huff Insurance do not want to see you in this situation.  So please take the time to call and makesure that the new car is added as soon as practically possible.

Car loan “upside down”? Get the GAP insurance, but not from the dealer.

As you purchase you new car, you may be presented with the option to buy an auto loan/lease or gap insurance coverage. Gap insurance coverage is needed when you are “upside-down” on your car loan. This can happen if you take on a loan with a zero or low down payment, financing most of the car’s cost, or taking a six or seven year loan, which most auto dealers are offering today.  Cars depreciate incredibly fast, and as a result, the amount that you owe on the car may quickly be far greater than its fair market value.

This can become a problem if your car is totaled after an accident or stolen. If your car is a ‘total loss’, your auto insurance company is only obligated to pay for its fair market value. If the amount you owe on the vehicle is more than the market value, you might find that you need to pay additional money (sometimes thousands of dollars) just to pay off the car loan (even though you can’t even drive the car anymore!)

That’s what gap insurance coverage is for. It pays for the difference between the market value of your car and the amount you have left on your loan. We absolutely believe that you should purchase gap insurance or auto loan/lease insurance coverage on every lease!

But,  Huff Insurance recommends that you purchase this coverage through your auto insurance company. Insurance companies usually charge between $50-70 per year for this protection. If you purchase “gap” coverage through your car dealer, you will usually be charged a lump sum of $600-800. Often, this will be rolled into your financing and you will also be charged interest on it for the entire life of your loan! If you purchase gap insurance coverage through your auto insurance, you can drop it when you are no longer “upside down” on your loan.

Complicated? No worries. Call your Huff Insurance team at 410-647-1111 and we will set it all up for you. As soon as you are ready to buy…call us before you sign the contract!

Buying a used car? If it sounds too good to be true, it probably is.

Maybe you did your car-shopping online, and you found a great deal on a used car. Low mileage, good condition, and after the test-drive you find it runs like a charm. The price is good, too. In fact, it’s great! They could get much more for this if they wanted to…

Wait. Why don’t they?  If the deal sounds too good to be true, it probably is.  With all of the flooding events that have occurred over the past few years (Hurricane Irene, Nashville Flooding, Superstorm Sandy, etc) there are thousands of vehicles being put on the market that have been previously flooded out.

That;s the main caveat with used cars.  Often, you can never be really sure what has happened to them. So you rely on the honesty of the previous owner…or you get a vehicle history report, such as Carfax. Various providers offer these reports online for a fee. Even better, if you call your Trusted Choice insurance agent at  410-647-1111, to see if you can get it for free!

Be smart. Call Huff Insurance before you buy your car.

Buying a car for your teen? Read this.

Your son just turned 16 and, of course, he passed his driver’s license test on his birthday. So, down memory lane you go…Remembering how you drove the old beat-up blue pick-up truck to school (Pick-up? They should have named it Hick-up!) and were dreaming about that sleek convertible…

Now your son’s 16, and you want nothing more than make his dreams come true. What parent doesn’t? Since both of you are into cars, you agree on a sporty model. It stretches the budget but it’s affordable.

The surprise comes Monday when you call your agent to add the new car to your insurance plan.

How Much?

Young drivers in combination with new, sporty vehicles make for an expensive mix when it comes to your auto insurance. This is not a personal offense against your teen (who might be a very good driver). But studies have proven again and again that young drivers are the highest risk on the road. And insurance companies will rate young drivers as high-risk drivers, because they simply have not yet gained the experience of older drivers. Additionally, sports cars by their very nature tend to encourage speeding which makes for increased insurance rates. Brand new models and types like SUVs and Trucks may also trigger higher rates.

If you are looking to buy a car for your teen, we recommend that you opt for a midsize, slightly older and reliable car with safety features such as airbags or anti-lock brakes. Older cars are generally less expensive to insure because they are less expensive to repair.

And remember, you can always give Huff Insurance a call for more advice or sample rate quotes!

Thinking about co-signing on a loan? We don’t recommend it.

Your grown-up daughter, who’s been living on her own for a couple of years, was just laid off from her job due to ever-present budget cuts. As if that wasn’t enough, her trusty old sedan just broke down as well, this time for good. Luckily, she has interviewed for a new position and things are looking pretty good…but if she gets the job, she will need a car to get herself there every day. Without a car, she can’t take the job. And even with the new job, adding a car payment to the budget will make things tight…very tight.

So, you consider helping her out by co-signing a car loan.

When purchasing and financing a new or used car for your adult child, think twice: If you co-sign on a loan for a car that your son or daughter will be driving, you could be held liable if an accident occurs – even if you weren’t driving, and even if the car was not listed on your insurance policy.

Why? Because liability follows the registered owner(s) of a car. If you are listed as a registered owner (which you are, if you co-sign), you can be held liable in case of an accident, and your assets are in jeopardy, often for the life of the loan.

So what can you do if you’d like to assist your child by helping him or her buy a car?

From an insurance standpoint, rather than risk your assets by co-signing, the best solution is to give financial support but to register the car in the child’s name only.

Keep in mind: This advice only applies for young adults who are no longer your dependents. If your child is still a dependent, lives in your household, and/or is continuing his or her education, families will often find the broadest coverage and best insurance rates by keeping registration and insurance in the parents’ names.

One-Stop Insurance Shopping at Huff Insurance

Buying a new car is very exciting! Get yourself cruising right by giving our team at Huff Insurance a call before you head out to the dealer. We can make sure you get adequate protection at the best rates, plus all the discounts you deserve. One quick phone call – much less hassle. Isn’t that the way to do it?

Contact us today 410-647-1111. We’re here to help!