Auto dealers are usually one of the biggest users of insurance, so buying from a dealer will usually get you more bang for your buck. However, even though you may be paying lower premiums because you are dealing with an auto dealer, you may be leaving yourself out in the proverbial cold when it comes to car accident coverage. Before you decide to drive a car that has been insured through a dealer, consider taking a few minutes to read over the auto dealer's insurance policy and maybe even call a lawyer or two just to make sure you know exactly what you're getting into.The first thing you should do is understand the basics of auto liability. In case of an accident, the damage to the other car and injury to you is covered by the auto dealer's liability insurance. This type of coverage is typically called PIP (passive interlock device) and is usually an option on a new car loan. If you've chosen to finance the car, the dealer will probably require you to have PIP coverage, as most lenders require it under the terms of their financing agreement. However, this coverage may not be automatically added to your loan; check with the lender before you finalize your financing.Liability insurance pays for property damage and bodily injury resulting from a car accident. Your coverage will depend on a number of factors including the deductibles you have chosen for your insurance, the value of the vehicle you are driving, your personal driving history, and the age and volume of autos on your policy. Liability insurance is the primary insurance coverage in the event of a lawsuit. Check the details of your dealer's policy for specific requirements and limits.Collision insurance pays for repairs to your vehicle after an accident if the auto dealer's insurance does not pay for the repairs. You will likely have your own policy, but it's wise to ask for a collision quote at the time of your auto purchase. Generally speaking, a smaller auto insurance company may quote a lower price on a collision policy than a larger provider. The deductible that your auto insurance company requires you to pay out of pocket in the event of a claim will also lower your quote. Keep in mind that the deductible amount that you choose will need to be paid by you, which could make it difficult to do comparison shopping. When cheap car insurance in alabama shopping for your auto dealer coverage keep these factors in mind.Comprehensive auto dealer coverage covers a broad range of damages and liabilities that can occur from a car accident. This type of coverage varies widely from one provider to the next. Some providers require the vehicle to be in pristine condition at the time of the claim, while others prefer to take a risk and pay to repair or replace the auto after an accident. If cheap car insurance in mobile al is required by your auto dealer, keep in mind that you may not always get the best possible quote. In addition, you should compare prices across multiple auto dealerships to ensure you get the best overall value and price for your coverage.A lot of auto dealers offer liability and collision auto insurance that are sold separately. These policies are usually very similar, but they differ because their individual coverage amounts may vary. Liability auto dealer insurance provides the bare-bones minimum level of protection for injuries and property damage. Collision auto dealer insurance provides coverage for both vehicles involved in the collision. If you only need liability auto dealer insurance, you should shop for the lowest cost auto dealer coverage available to you.With so many different types of auto dealer insurance available to you, there is no reason to pay more than you have to. Shopping around will allow you to discover the best value for your money. It will also allow you to find the most competitive rates. Many people often think that they have to pay too much for auto dealer insurance, but the truth is that they actually don't have to pay as much as they think. They are paying too much because of a misconception about auto dealer insurance.There are many different factors that can affect the value of an auto dealer's insurance policy, such as the location of the auto dealer, the amount of cars that the auto dealer is selling, and even the age of the drivers. Some of these factors are outside of your control, but others such as the location of the auto dealership can be controlled. If you live in a safe area, it may not be profitable for your auto dealer to sell all of its cars through a local auto dealer network. However, if you drive from point A to point B, you can benefit from a national auto dealer network.
