Despite what commercials try to tell us, giving a car as a gift for Christmas is a rare thing. After all, cars are a large commitment. Not only is there the upfront expense, but they come with on-going costs such as repairs, insurance, monthly payments, etc. In fact, Saturday Night Live recently parodied the idea of surprising someone with a new car for the holiday season.
Still, it’s not impossible to give a car as a Christmas gift, especially if you’re giving one to a child who recently got their license.
If you are purchasing a car this holiday season, whether it’s for someone else or yourself, it’s important that you pair it with the right car insurance. Here are a few suggestions to make sure you get the coverage you need as we head into the new year.
Determining Your Car Insurance Needs
Auto insurance policies are very customizable. The most basic policies (which you’re required by law to have) cover damages done to other vehicles and property, as well as injuries that other parties might sustain. However, this type of policy doesn’t cover damages that your own vehicle sustains. For that, you’ll need collision and comprehensive coverage.
If the car is worth $1500 or more, it’s a good idea to include collision coverage on the policy. This will cover the cost of car repairs should it become damaged in a collision with another vehicle (after you’ve paid your deductible, of course). If the damages exceed the worth of the car, then you will instead be reimbursed for the value, and the car will be declared totaled.
Comprehensive coverage is very similar, except it covers situations outside of collisions. This includes things such as fire, wind, hail, theft, etc.
If you’re leasing a vehicle, you’ll probably be required to have both collision and comprehensive coverage. You’ll also likely need gap coverage. This covers depreciation of the car’s value, protecting you from becoming upside down on a car. Let’s say you total your car, but its current value is less than what you still owe. Gap coverage is applied to make up the difference.
There are other add-ons you can include with your car insurance such as glass and windshield, roadside assistance, etc. Additionally, there are options for saving on car insurance such as bundling it with other insurance policies.
Getting the Best Deal on Car Insurance
The best (and easiest) way to get the auto coverage you need at a price you can afford is with a trustworthy insurance agent. At Link Hellmuth Insurance, we work with our customers to understand their needs so that we can put together a policy that provides for them. From there, we shop their policy around to get the best price possible.
In the end, you receive better coverage for a lower price with little-to-no effort on your part. For quality auto insurance in the Springfield, Ohio area, contact Link-Hellmuth today!