WomenWithWheels.com - Questions to Ask Before Your Next Auto Purchase

Questions to Ask Before Your Next Auto Purchase

Susan Frissell

Dream car in mind? Well, before you take even two steps toward buying it, make sure it will have the auto coverage it needs.

As more and more 2003 vehicles become unveiled, consumers will be beating their way to dealership doors, shopping around for new wheels. To ensure they get the "best deal," consumers will do some comparison shopping; reviewing new car guides, asking friends and experts and consulting the Internet.

Just as important is investigating automobile insurance to make sure you have the right coverage for the vehicle you buy. According to Cathy Rein, President and CEO of Metlife Auto & Home, "there are ways to take the sting out of premium increases associated with the purchase of a new car." Making smart decisions, says Rein, includes familiarizing yourself with the out-of-pocket expenses of which many people may not be aware.

The following questions offered by MetLife Auto & Home News, are ones to consider before purchasing a new vehicle:

How important is "image"? Although a car may look great and catch your eye, you may pay more for the "flair." Expensive cars traditionally require expensive repairs, higher theft rates and higher insurance costs. Sport-utility-vehicles and sports cars typically cost more to insure.
How safe is the vehicle? Vehicles considered "crashworthy" are usually the best insurance risks. Take some time to look at safety ratings at www.nhtsa.dot.gov or www.highwaysafety.org to determine how your prospective purchase is rated.
Can certain accessories be used to my advantage? Such accessories as anti-theft/alarm devices and anti-lock brakes may qualify for discounts in your insurance premium.
Are there other discounts for which I qualify? Insurers offer discounts for several factors: driving record, good grades, safe driving courses, number of drivers using the vehicle, low annual mileage, a garaged vehicle, and/or driven for work or pleasure.
What about a raised deductible? The higher the deductible, the lower the premium. For the average auto owner, increasing the deductible from $250 to $500 could reduce the premium by 15 to 30 percent.
What does auto insurance cover? Determine in advance the level of protection actually afforded under the terms of the policy. For example, one important question to ask is if your new car is damaged beyond repair, will your insurer replace the vehicle with a new one, or take a deduction for depreciation. Insurers deduct for depreciation when settling both total and partial loss claims on their brand-new owned vehicles. Because not all consumers are aware of this, it pays to ask the question before the loss. A consumer has the option to either accept limited coverage or secure a more complete policy.

It pays to find out the answer to these and other insurance coverage questions before making that all-important purchase. Do your homework!