6 Financial Decisions to Make After Purchasing a New Car in Florida

After you've found the perfect car and signed on the dotted line, there are a few more financial decisions to make. One of the most important is choosing the right insurance policy. For some that is the cheapest car insurance Florida has to offer, for others they may need to fine tune the details with an agent. 

Delaying this task or choosing a policy that doesn't fit your needs can be a substantial financial risk. Here are six things to keep in mind when buying and insuring your new ride in Florida:

1. You must adequately insure your car at all times.

It would be best if you figured this cost into your financial planning, monthly car payment, and fuel budget. Florida law requires all drivers to have a minimum of $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL).

If you're caught driving without car insurance in Florida, you could face several penalties, including:

• – A fine of up to $500
• – A six-month license suspension
• – A requirement to file an SR-22 form
• An SR-22 certificate of financial responsibility proves you have the minimum required insurance coverage. This form is filed with the state by your insurance company and typically requires a higher premium.
• You may need more than the minimum car insurance required by Florida law.
• While the state minimums will technically fulfill your legal obligation to insure your vehicle, they may not be enough to protect you financially in the event of an accident.

2. Insurance requirements – Financing

If you're financing your car, your lender will require that you have comprehensive collision coverage. The combination of these two additional forms of coverage can be expensive, depending on the type of car and the amount you're financing.

3. Insurance requirements – Leasing

If you're leasing your car, your lease agreement will require that you have comprehensive collision coverage. You may also be required to purchase gap insurance, which protects you if your car is totaled and you owe more on the lease than the car is worth.

4. Premium discounts.

You may be able to get a discount on your insurance premium if you have a clean driving record, are a good student, or belong to specific professional organizations. Further, you may qualify for additional discounts on your insurance premiums if you're a military veteran, a first responder, or a teacher. It can't hurt to ask your agent, and every penny saved counts.

5. Don't forget your deductible. 

Put a regular payment back to deal with minor repairs and to pay the deductible when you are in a collision, or you need to file a claim. The deductible is the amount you must pay out of pocket before the insurance covers the rest. The higher the deductible, the lower your monthly payments will be.

Choose a deductible you can afford if you're in an accident, but remember that a higher deductible could mean having to pay for more repairs out of pocket if you're involved in a minor fender bender.

6. Shopping around for the cheapest car insurance in Florida is a smart move. 

Be sure to compare rates from at least three different insurers. Remember that the most affordable policy isn't always the best. Ensure you're getting the coverage you need at a price you can afford.

Saving Money with Quality Insurance

The process of insuring your new car doesn't have to be complicated or expensive. Keep these six tips in mind, and you'll be on your way to finding the right policy for you.

Ideas to Help You Save

• Reassess your insurance needs at every renewal. If you've been married, had a baby, moved out of your current age group, moved to a new house, or changed jobs, your agent may need to adjust your coverage.
• Take a safe driving course to learn how to drive defensively and safely in dangerous environmental conditions.
• Agree to the GPS driving habits tracker apps your insurance agency offers. You'll earn further discounts as you prove your ability to drive safely.
• Driving a car with added security features will also help lower your premium rates. Pay attention to your credit score.
• Good credit history will help you save money on insurance.
• Bundle your home, life, and car insurance policies with the same insurer for the best savings.
  

What Will You Do with All that Extra Cash?

Once you've got that car budget in hand, you can start thinking about what you'll do with all the money you're saving. You could plan a vacation or an adventure with your family or work on paying down further debt and working on that credit score. Paying off that new car early will help your budget too.