Insurance and Finance

4 Auto Insurance Questions to Ask Before Buying a Car

By Staci Parks 3.15.20

Buying a new — or new-to-you — vehicle can be an overwhelming experience with several factors to consider. Before you drive off the lot, there are a few things you need to know to avoid an unexpected premium hike. As with any major purchase, it’s important to keep your Texas Farm Bureau Insurance Agent informed, so they can help guide you through your insurance needs.

Texas Farm Bureau Insurance agency managers Kathy Winters in Clifton and Obie Baker in Marshall shared key questions policyholders should ask their Agents throughout the car-buying process.

1. How much will it cost to add my new vehicle to my policy?

Winters: The premium will depend on the vehicle’s make, model, and year, among other factors. Generally, the more expensive the vehicle, the higher the premium. Knowing what the insurance premium will be can help you make an informed purchasing decision.

Before you buy, give the vehicle’s VIN number to your Texas Farm Bureau Insurance Agent, who can generate a quote for you. This way, you can ensure that the premium falls within your budget. Our agency has had policyholders who didn’t check the premium beforehand return vehicles to the dealership after discovering the monthly insurance premium.

2. How much coverage do I need?

Baker: No matter what type of vehicle you purchase, make sure you have enough coverage — specifically liability and uninsured/underinsured motorists coverage. This proactive step will protect you when you need it most.

3. Do I need gap insurance?

Baker: It’s reasonable for people to think they can buy gap insurance from their Texas Farm Bureau Insurance Agent, as “insurance” is in the name. But this coverage is purchased through the dealership. In many cases, gap insurance is necessary, and in other cases, it may not be necessary. Your Agent should be able to help you make an intelligent decision about whether or not you should purchase gap insurance based on the type, age, and purchase price of the vehicle you’re buying.

4. How much will it cost to add my teen driver to my policy?

Winters: This depends on what type of vehicle your teen will be driving, among other factors. Premium increases vary based on various factors such as vehicle type and coverage level. If you’re putting a 16-year-old kid into a sports car, that could cost a lot more than adding your teen to an average vehicle with comprehensive collision coverage or an old beater truck with liability coverage. Your Agent should be able to walk you through the best options for getting the coverage you need.

Your Texas Farm Bureau Insurance Agent will be there when you need them most — even through the car-buying process. Call your Agent today to get an auto insurance quote.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation. © 2020 Texas Farm Bureau Insurance