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New customer to Sun Coast? You are in the right place. Select a product below to get started.
New customer to Sun Coast? You are in the right place. Select a product below to get started.
Buying your first new car is exciting — that new car smell, the clean interior, and the latest features. But when you’re financing the purchase (meaning you’re making payments and the lender still has a stake in the car), there are important things you need to know about insurance requirements, costs, and responsibilities.
If you’ve never gone through this process before, here’s what to expect from start to finish.
Need help choosing the right policy for your first car? A Sun Coast agent can walk you through your options — fast, friendly, and pressure-free.
When you buy a car outright with cash, you get to decide how much insurance to carry (as long as you meet your state’s minimum requirements).
When you finance a car, the lender still owns the car until you’ve paid off the loan. That means they get a say in how you insure it — and they typically require extended coverage (often called comprehensive and collision coverage).
Why? Because if the car is damaged, stolen, or totaled before you’ve paid it off, they want to make sure their interest in the car is covered.
Required by your state, covers damage or injuries you cause to others in an accident.
Helps pay for damage to your car from an accident, regardless of fault.
Protects your car from non-collision incidents like theft, fire, weather damage, and vandalism.
Covers the difference between what your insurance pays if your car is totaled and what you still owe on your loan. This coverage is generally available through the dealership where the vehicle is purchased.
💡Without gap insurance, you could end up making loan payments on a car you no longer have.
Before you finalize the sale, contact your insurance provider for a quote that includes extended coverage. Lenders will require proof of insurance before handing over the keys.
Choose a deductible that fits your budget. Lower deductibles mean higher monthly premiums, while higher deductibles lower your monthly cost but increase your out-of-pocket expense in a claim.
Even with extended coverage, you may qualify for savings (good driver, multi-policy, etc.).
Your insurer will need to list the lender as a loss payee so they’re notified if there’s a claim payout.
Financing a car — especially a brand-new one — usually means higher premiums than insuring an older car. Factors that affect your cost include:
Once your loan is completely paid, the lender may be removed from your insurance policy. You can then decide if you want to keep extended coverage or reduce to just liability and other optional protections.
⚠️ Reducing coverage can lower your monthly cost, but it also means taking on more risk if something happens to your car.
