Everyone loves that new car smell!

It’s exciting – it’s never quite the same as buying your first car, but every time still brings a thrill.

You’ve done your research – you know the car, your financing options, read up on the safety ratings and gas mileage. You’re ready. You’re driving that new vehicle home today.

But wait. Did you call your insurance broker so that your new vehicle is covered when you drive it off the lot?

As part of your research, it’s a good idea to call Secure Insurance Solutions. We can tell you about the savings you can get on your insurance based on what you buy. It’s different if you buy new or used, and the type of car can make a difference too.

  • Do you have the GAP covered?
  • Thinking about a used car to save money?
  • Buying your teen a car?
  • Considering co-signing a loan?

You may be asked to buy GAP coverage

If you’re leasing a vehicle you’ll need GAP insurance. GAP insurance, or Guaranteed Auto Protection,” covers you for what you owe on the car, not the current market value.

Even when you’re buying the car, if you make a small down payment, or none at all, consider GAP insurance.

If you don’t have GAP insurance and your car depreciated in the first year to say $30,000 but you still owe $40,000 there’s a $10,000 gap. So if you’re in an accident without GAP insurance, you’re out $10,000 that you still need to pay out the loan even though there’s no car to drive.

Cars depreciate incredibly fast and you don’t want to get stuck paying the gap. That’s why we believe that you should purchase “gap” or auto loan/lease coverage on every lease!

We recommend that you purchase this coverage through your Auto Insurance company. Insurance companies usually charge a monthly fee while a dealer will ask for a lump sum. This usually gets rolled into your financing so then you’re paying even more interest because the loan is bigger.

And as soon as you owe less than the car is worth, you can drop the GAP coverage. Complicated?

Call your Secure Insurance Solutions team and we’ll make sure you’re set up. But call us before you sign a contract!

If a used car sounds too good to be true, it likely is

You’ve looked through used car lots, you’ve looked online and you’ve finally found a great deal on a used car. Mileage is low and it’s in good condition. After the test drive you’re convinced. But you’re also convinced that they could get more for this car…

With a used car you never really know what happened to it – it could have had more than one owner. By law in Ontario, private sellers of most vehicles must provide a Used Vehicle Information Package. It gives you the buyer all the information about the car:

  • A description
  • Ontario vehicle registration history
  • Odometer information
  • Outstanding debts on the vehicle
  • Wholesale and retail values
  • Retail sales tax requirements
  • Bill of sale
  • Tips on vehicle safety standards inspections

Make sure you ask to see the Used Vehicle Information Package – don’t trust a stranger to tell you everything you need to know. And give your insurance broker at Secure Insurance Solutions a call before you buy.

Buying a car for your teen?

Every kid gets their license and wants a car. You remember the beater you drove (when it would start!) and you want something better for your child.

You may think a new, sporty model is the perfect thing, but have you talked to your insurance agent? You should – because you don’t want to be surprised by the cost of insurance after you buy.

Young drivers and new sporty vehicles are a bad mix for your wallet. Your teen may be a great driver, but the studies show that young drivers are the biggest risk on the road. Without the experience of older drivers, insurance companies will rate all young drivers as high-risk drivers.

Sports cars mean higher insurance rates on their own too. By their nature they encourage speeding (you know you want to as soon as you sit in one!) Some other brands and types like SUV’s and trucks may also trigger higher rates.

We know your teen will likely be disappointed, but we recommend choosing a mid-size, 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 us a call for more advice or sample rate quotes!

Considering co-signing a loan?

We recommend that you don’t.

Your poor daughter. She just got laid off from her job because of budget cuts and then her old car broke down. But she’s got a lead on a new job, which she needs a car for. Without a car she can’t take the job, and even for awhile with the new job a car payment will make things tight for her financially with her rent and other living expenses.

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

Think twice about co-signing your adult child’s new or used vehicle. If you co-sign on a loan for a vehicle that your child’s driving, you’re one of the registered owners. And that means you’re liable too if there’s an accident. That puts your assets in jeopardy for the life of the loan.

But what if you still want to help your child?

To reduce your risk from an insurance standpoint, don’t co-sign a loan but offer financial support for the vehicle. And then have your child register the car in his or her name.

Please note: This only pertains to young adults who no longer live at home and aren’t your dependents. If your child still lives at home and is continuing his or her education, we can help you find the broadest coverage and best insurance rates by keeping registration and insurance in your name.

You can get it all at Secure Insurance Solutions

Before you even head to the dealers or that address you found online, give us a call before you buy. We’ll make sure you get right protection at the best rates, plus all the discounts you deserve. One quick phone call – much less hassle.

Contact Secure Insurance Solutions today.