Over time, no car is immune from normal wear and tear, and, unfortunately, some vehicles might sustain damage in an accident, or need to have key systems replaced, like a transmission, radiator, or even an engine. As cars and trucks get older, their owners may look to trade them in to a used car dealer. Whatever the purpose of a trade in, it will certainly impact a policyholder’s auto insurance coverage, and it can have other financial consequences. This is why people considering selling or trading in their vehicle should speak to an independent insurance agent who will help them assess their car’s trade-in value, and the impact of a sale on their car insurance coverage.
An independent insurance agent in the area is familiar with common methods used in calculating trade-in value, such as utilizing Kelley Blue Book, Edmunds, and other similar resources. While these may prove useful, an independent agent will use his own experience and knowledge to personally assist car owners in determining the most likely value that will be given to their car in a trade in with a dealer.
Primarily, an independent insurance agent will probably ask an owner to thoroughly describe the vehicle they are looking to trade in. He will want a detailed overview of its condition, and will also need to know its year, make, and model. He will ask about whether it has two or four doors, an alarm or other anti-theft devices, and leather or fabric seats. He might ask whether a car has a four or six cylinder, or V-8 engine, and will inquire about accidents involving the car, and any damage sustained. An independent car insurance agent has worked with many people interested in trading in a car, and he may recommend that an owner get a vehicle washed and detailed before bringing it into a dealer. He might mention that a car with high mileage or obvious damage, but with a brand new suspension, radiator, or steering system, might still have a reasonable trade-in value, despite what its owner might think.
While an independent insurance agent cannot actually make a trade in for a car owner himself, he can guide a person through evaluating the trade-in value of their car so that they can work toward negotiating a reasonable deal when they visit a local used car dealership. He can talk about how trading in a car will affect a person’s auto insurance policy, along with the impact of buying another new or used car, or adding on additional kinds of car insurance coverage, like insurance for driving outside of the country, or for a newly acquired antique or collector car, or umbrella coverage.
An independent car insurance agent is familiar with resources to assess what dealers and individual buyers have paid for cars that are similar to the vehicle that an insured wants to trade in. He can take a look at a car owner’s vehicle to give them a realistic idea of what cosmetic elements a dealer will consider in determining its value, including things like stains on the seats, or peeling coating on the steering wheel, dents or dings on the body, and automatic locks or windows that do not work. And, an independent insurance agent will probably advise owners that factors like whether a car has been painted, or has had extensive restoration work can decrease its value, but will also mention that certain repairs may be worthwhile since they can ultimately increase a vehicle’s value in a trade in.
An independent insurance agent can go over how dealers take into account things like taxes, and, importantly, their ability to resell a car. These and other aspects of trading in a car are things that an ordinary person might not know, which is why it is helpful to talk with a trusted independent insurance agent. Working with an independent insurance agent in examining the trade-in value of a car or truck, and how a trade in can change an insured’s coverage needs, can permit a owner to maintain the appropriate auto insurance and make informed decisions during the process of trading in their vehicle.
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