Dostal & Kirk is an independent insurance agency dating back to 1875. We have offices in Bucyrus, Galion and Powell, Ohio. Dostal & Kirk can service all of your personal insurance, commercial insurance, life insurance and financial services needs. Follow our blog to stay up to date on agency and industry news. Our Mission is to build client relationships that are based upon three fundamental principles: trust, value, and service.
Thursday, April 16, 2015
What to know before you shop for a car
What “options” are you legally
required to buy?
Confused about what is and isn’t required when
buying or leasing a vehicle? Ohio law requires drivers to meet financial
responsibility requirements, which can be done by purchasing liability
insurance. In addition, when leasing or financing a vehicle, those contracts
require you to have physical damage insurance coverage.
Beyond that, here are answers to common questions
asked about dealer options.*
Is my “new” car automatically
covered by my current auto insurance policy?
Usually yes, but the length of time coverage is provided
on a newly acquired auto (typically 4 to 14 days**) varies based on the types
of coverage and whether the vehicle is a replacement or additional vehicle. To
be safe, call us about your policy.
newly acquired auto will receive the broadest coverage provided for vehicles
already on the policy. However, if your current policy does not have Collision
or Other Than Collision coverage, the automatic extension of these coverages to
the new auto is usually limited to 4 days.** Though not legally required, you
may want to take your insurance policy or ID card with you.
What about loan/lease GAP insurance?
an accident, your auto policy pays you the current market value of the car, but
you could still owe much more to the finance company. That gap, or amount you
still owe, is covered by loan lease Guaranteed Auto Protection (GAP) insurance.
Though not legally required, some new car leases have GAP coverage built into
the contract. Ask the
dealer if you have the option of deleting the coverage from the lease and purchasing it as an endorsement to your
existing auto insurance. Doing so could save you a few dollars to a couple hundred
dollars. We can get you estimates now.
Is an extended warranty mandatory?
and you don’t have to buy an extended warranty before you leave the dealer. A
warranty may not be necessary for you, so call us. But if you are intent on
getting a warranty, know that purchasing from the dealer is not your only
What about credit life and disability?
life and disability policies sold by auto dealers are not required. They
protect the lender if you cannot make monthly payments due to death or
disability. You are insuring the unpaid balance of the loan. If that’s all you
need, the dealer’s policy will suffice. However, it may be wiser to use that
money to increase coverage on your own life or disability policy instead of
tying it to the lease or purchase of a vehicle.
you carshop, call us. We’ll help you get prepared and informed so you don’t
end up paying extra for something you neither want nor need.
these same principles apply for purchasing a boat, RV, travel trailer or
** Information from Insurance Services Office,
Personal Auto Policy, 2005 edition.
This information brought to you by Dostal & Kirk, Inc., a proud member of Professional Independent Agents Association of Ohio,