Buying a New Car? What Kind of Insurance Do You Need?

Considering the cost of new cars today, it only makes sense to get adequate insurance coverage to protect your new investment. You may not be able to prevent an accident from happening, but you can be prepared for any eventuality. The right car insurance coverage from General Insurance Agency in Clovis, NM will ensure your new vehicle has the protection it needs. As the proud owner of a brand new vehicle, here are a few coverage options you should consider: 

New Vehicle Replacement Coverage

Even if you’re a careful driver, there’s no guarantee you will never have an accident. A major accident could result in totaling your new vehicle. New vehicle replacement coverage helps cover the cost of replacing your totaled vehicle with a similar make and model, despite depreciation costs. Depending on the cost of the vehicle you just bought, this coverage could save you time and money in getting a replacement vehicle for the one you lost. New vehicle replacement coverage goes beyond what collision and comprehensive coverage have to offer in protecting you from financial loss.

GAP Coverage

New vehicles depreciate quickly, starting immediately from the time they’re driven off the lot. If you’ve taken out a loan to purchase a new vehicle, you may want to consider GAP insurance coverage to protect your assets in the event of an accident that results in the total loss of your new car.

GAP insurance will cover the difference between your vehicle’s cash value (after depreciation) and the amount of your loan. This gives you the cash you need to pay off your car loan so you’re not left with a huge debt to cover out of pocket.   

Learn more about new car insurance options and costs by contacting General Insurance Agency, Clovis, NM.