Taking out an auto loan is the most common way to finance a new vehicle purchase. This option provides drivers with a realistic path to full ownership through a monthly payment plan. In addition, responsible auto loan payments can be an indicator to credit bureaus that you can finance much larger life milestones (like a home).
Thank you for reading this post, don't forget to subscribe!Choosing a reliable loan provider is the first step to securing a new vehicle – however, there are other areas to address before you can take the wheel. All reliable auto insurance agencies will have requirements for the types of insurance you need to procure to cover your vehicle. Here is everything you need to know about getting auto insurance for a financed vehicle in Pennsylvania.
The basics: coverage required by most lenders
Most loan distributors have minimum requirements put in place as to the types of insurance their customers must secure to get a loan:
- Collision: This coverage comes into effect when you have been in an auto accident involving another driver (whether they remain present immediately following the accident or drive off). Your insurance company will assist in paying repairs or other losses that result from this unfortunate situation after you pay your selected deductible.
- Comprehensive: Of course, there are plenty of vehicle damages not caused by an accident with another driver that require financial support – such as fire, theft, vandalism, flooding, and accidents involving wildlife. Comprehensive auto insurance covers the repairs needed following these accidents.
- Liability: The minimum liability limits needed for car insurance are different in each state. In Pennsylvania, vehicle owners are required to access bodily liability insurance of no less than $15,000 per person or $30,000 per accident, and property damage liability of no less than $5,000.
What is “full” auto coverage?
Most auto lenders will tout full auto coverage as the smartest option for securing a vehicle. For most insurance providers, “full” coverage constitutes all three required policy types: collision, comprehensive, and liability. You may be able to secure all three for a lower overall rate under a full coverage plan.
Additional coverage options
In addition to the three main coverage requirements, lenders recommend obtaining a GAP (guaranteed auto protection) insurance policy as well. GAP insurance offers a financial cushion if your vehicle is totaled before you can pay it off in full. Other additional coverage options include roadside assistance and personal injury protection (PIP) insurance.
Fairly priced auto insurance coverage in Pennsylvania
Looking to secure an auto loan? Already financed your new vehicle, and in need of auto insurance to provide to the lender before the thirty-day grace period is over? PA Auto Insurance Outlet is here to help! We pride ourselves on providing comprehensive vehicle insurance to individuals in need of a reasonable price point, or those who have been turned down in the past. All are welcome at our in-person location right outside Philadelphia proper. While you’re with us, investigate securing auto tags for your vehicle, and talk to an agent about life and/or homeowner’s insurance. Give us a call today to learn more!