If you’re in the market for a new car, there are a few things you should know about the dealership’s insurance requirements. In this article, we’ll provide an overview of what you should expect from dealerships when it comes to insurance, and how you can best prepare yourself.
What to Expect From Car Dealership Insurance
When you purchase a car from a dealership, there are typically many different types of warranties and protection plans offered. It is important to understand what each one covers before signing anything. Below is a list of some common coverage that you may need when purchasing or leasing a car from a dealership:
- The manufacturer’s warranty – This provides coverage for any defects in the car that occur within the first few years of ownership.
- The dealer’s warranty – This is an extension of the manufacturer’s warranty and covers problems that occur after the car has been purchased.
- The customer’s warranty – This is an additional layer of protection that provides coverage for problems with the car that occur after it has been purchased but prior to its first service date.
- Collision insurance – This protects you if you are involved in a collision while driving the car.
- Comprehensive insurance – This covers damage to the car beyond normal wear and tear, such as theft or vandalism.
How Much Coverage Do Dealerships Typically Require?
Most car dealerships require policyholders to have liability insurance in the event of an accident. The amount of coverage a dealership requires can vary, but is typically in the hundreds of thousands of dollars. Dealerships may also require vehicle insurance, which covers the car and its owner in the event of an accident.
What Happens if You Don’t Have the Required Insurance?
If you don’t have the required insurance, your car dealership may not be able to sell you a car. Car dealerships are required by law to sell cars to customers who have the required liability insurance. Without this insurance, the car may be seized by the state or federal government.
What Should You Do if You Have a Claim?
Some things you should do if you have a car accident and are injured: Make a list of your injuries, including descriptions of the physical pain, numbness, tingling, etc. Get medical records from your doctor, as well as any x-rays or other Imaging from your accident. Write down the make, model, and license plate of the car that hit you and any witnesses to the collision. Take pictures or video of the scene of your accident with your phone. Inform your insurance company as soon as possible of the collision. They will need to be notified in order to begin the claim process. Get a copy of your driver’s license and vehicle registration in order to have these items displayed at the scene of your accident. Make a list of expenses associated with your injuries, such as medical bills, lost wages, etc. Collect any evidence that was left at the scene of the accident, such as broken glass or skid marks.
Conclusion
Buying a car is an important decision, and it’s one that you shouldn’t take lightly. That’s why it’s important to know what insurance requirements dealerships typically have in place. Some things you should expect to find covered under the dealership’s policy include comprehensive liability insurance, collision coverage, and uninsured motorist coverage. Make sure you read the fine print so that you understand exactly what is being covered before signing on the dotted line.
