New Car Insurance for PA Drivers - Plymouth Rock Assurance

Congratulations - you’re the owner of a shiny, new vehicle! But before you put the key in the ignition and drive off the lot, you’ll need to have auto insurance. The finance and insurance professional at the dealership has most likely processed hundreds of transactions, so he or she will be able to walk you through the process and all the paperwork involved. Whether you’re buying a brand new car, or something that’s pre-owned, knowing what to expect will be helpful so you have the information needed when it’s time for you and the dealer’s finance professional to contact your insurance company to obtain the coverage you need .

What to Expect At the Dealership

It might be helpful for you to think of this process as a circle of trust, or a group effort. The parties involved with insuring your new car purchase include the insurance carrier, the representative from the dealership and you. After you’ve done the fun part of picking out your new ride, the dealer and the insurance carrier will do most of the heavy lifting when it comes to exchanging important information. Typically, the finance and insurance professional will fax a copy of the specification sheet on the vehicle to your insurance carrier. This spec sheet will have all the details that the carrier will need to determine the insurance rate, or “premium,” to insure your new purchase. After settling on your coverages and your rate, then binding coverage, your insurance carrier will fax a declaration page (proof of insurance) back to the auto dealer.

If your vehicle transaction involves trading in your current vehicle, you’ll also want to be sure that your insurance carrier is aware of the nature of your transaction, so that the vehicle you’re trading in is removed from your insurance policy. Again, if you’re involved in a transaction with a licensed motor vehicle dealer in Pennsylvania, the dealership representative will help you with paperwork that includes registration and transferring your tags and title.

What about a Private Vehicle Sale in PA?

If you are buying or selling a vehicle privately in the state of Pennsylvania, both you and the other party are required to go to a local PennDOT office in order to complete the transaction. The steps are similar, but vary somewhat depending on whether you are a buyer or a seller. Let’s take a look at what’s involved for each:

• Private Vehicle BUYER: Both you and the party selling the vehicle must meet with a state representative of the Department of Motor Vehicles. As the buyer, you will provide all required information on the back of the title in the presence of the PennDOT agent. This information will include your legal name, home address and your signature. If you’re planning to finance the purchase of the vehicle, you’ll need to provide the lienholder information, as well. Also, you’ll need the Sales and Use Application for Registration (Form MV-4ST). In order to complete the transaction, you’ll need to show proof of insurance and pay title fees and taxes.

• Private Vehicle SELLER: Selling a vehicle in a private transaction is somewhat easier than buying, however you still need to follow some important rules to ensure the sales process is smooth. As the seller, you will need to record the vehicles mileage on the back of the title. You will need to then print and sign your name in front of the PennDOT representative. You will need to obtain a written acknowledgement from the buyer in order to show proof that the title was legally transferred, and the vehicle has been “delivered” to the buyer. When the ownership has been transferred, remember to remove your plate from the vehicle and surrender it to PennDOT. DO NOT give your plate to the new owner of the vehicle!

Whether buying a vehicle from a dealer or a private seller, if you’re starting a new policy altogether, your insurance carrier will usually require some additional information. Let’s take a closer look at some key pieces of information that will most likely be needed.

Driver Information

It’s natural for you to wonder why insurance companies ask for a lot of personal information when providing a quote (known as “premium”) for auto insurance. Extensive historical data is constantly being reviewed, which shows how safe or risky drivers may be to provide the right price for each drivers’ insurance policy. There are many state-approved factors that are taken into account when pricing auto insurance.

Name. The full legal name of all drivers operating the vehicle will be required. This includes aliases and any suffix such as “Sr.” or “Jr.”
Age. The date of birth for each driver will be needed in order to properly rate the risk for the insurance company and to quote a premium that is associated with that risk. It probably won’t come as a surprise to you that there is a greater risk associated with insuring an inexperienced 17-year-old driver in comparison with an experienced 40-year-old driver.
Gender. Most companies consider gender as one of a number of factors that go into calculating an insurance premium.
Marital Status. Single, divorced, widowed or married? Your marital status will factor into how your auto insurance premium is calculated, according to rates approved in the state of Pennsylvania. Statistically speaking, this factor helps predict risk (when combined with various other state-approved rating factors).

Driving Record

Accidents. Your accident history is an important factor in determining your rate, and your personal driving history report will be automatically pulled by the carrier to help determine your premium.

Moving Violations. Examples of moving violations include speeding, running a red light or stop sign, or making an illegal turn. Your violation history (or lack of violations, in the case of a clean record) is an important factor for calculating your premium.

Annual Mileage Driven

Mileage Calculation. Simply determine how many miles you travel for your daily work commute roundtrip. Add in weekend trips to the grocery store, and that family vacation. Odds are you’ll be around 12,000 annual miles, which is average. Keep in mind that if you use your car less than average, this may help reduce your auto insurance premium.

Vehicle Identification Number

VIN. This is the number that is unique to each car. This is a 17-character identifier that consists of both numbers and letters. The VIN is typically found on a metal plate that can be seen on the lower end of the windshield on the driver’s side of the vehicle. The dealer will send the VIN to the insurance carrier with the vehicle specification sheet for your new car.

Year of Vehicle

Many people still believe that a new car is more expensive to insure than a pre-owned car, but it’s simply not true all the time. The year of the car factors into the overall premium you pay, but the make and model are usually far more important to your insurance company than the year your car was manufactured.

Cost of Vehicle

The value of the new car you plan to drive off of the dealer’s lot is important for the insurance company to know. A new luxury vehicle, like a Cadillac is typically going to run you a higher premium compared to a relatively inexpensive Chevy Metro.

Special Equipment

Airbags. Airbags may have become somewhat controversial over the last few years, however, the fact is that airbags have saved more lives since being installed in mass-produced vehicles. Having an airbag in place can reduce the auto premium you pay.

Anti-Theft Devices. If your car has any type of anti-theft device, this bodes well for you with regard to paying a reduced premium.

There you have it: the auto insurance guide for the new car buyer. The information required for the vehicle, such as year, make model, VIN, etc. will be right there at the dealership. You’re already halfway there on the checklist. Be sure to know information detailed earlier for each driver and the estimated mileage you plan to drive in a year. And if you think that you may potentially insure your new ride with a new carrier rather than remaining with your current carrier, you may want to have your current declarations page handy for comparison. You’ll be casually cruising down the road turning heads in no time! If you have questions about the new car buyer’s checklist, contact a Plymouth Rock representative for additional details.

Plymouth Rock Assurance is a marketing name used by a group of separate companies that write and manage property and casualty insurance in multiple states. Insurance in Pennsylvania is underwritten by Palisades Insurance Company, Palisades Property and Casualty Insurance Company and High Point Preferred Insurance Company.

Call 855-993-4470, get a free quote online or find a local independent agent to learn more about new car insurance in Pennsylvania. Visit our contact us page if you’d like to give us a call or send us an email.