When investing in a car, insurance is a critical part of the buying process. It can protect your investment from damages such as theft and vandalism while also ensuring you meet all requirements under liability laws. Buying auto insurance in Pasadena, CA, for a new, used vehicle, takes a bit of careful consideration.
At Reinas Insurance Agency Inc., we work with those who need quality insurance at competitive rates. Here’s what you need to consider.
Auto Coverage to Purchase and Why
In the worst-case scenario, you want to know your auto insurance is enough to cover all of your losses. While you need to meet the requirements for liability insurance required under the law, you also need to consider the following factors:
- Lender requirements. If you have a loan on the car, the lender expects you to maintain full coverage, which includes comprehensive and collision damage coverage in addition to liability. It must be at least enough to pay off the loan balance.
- Car value. To estimate the car’s value, consider more than the selling price. You may also want to factor in extra features or the need to repair hard-to-find parts. Most often, you should insure your car for at least the value you paid for it to protect your investment.
- Depreciation. Consider adding guaranteed asset protection when you first purchase your car. This coverage can help bridge the gap between the car’s actual cash value (ACV) and the remaining loan or lease balance, if the vehicle is totaled or stolen soon after you purchase it.
- Risks and use. Talk to your insurance agent about the options available to you to cover risks you have, especially if you plan to use the car for a part-time job.
To get the right level of auto insurance for your vehicle, turn to our team for a consultation. At Reinas Insurance Agency Inc., we offer auto insurance to those in Pasadena, CA, and the surrounding area who need quality coverage at a competitive price that fits their budget.
