Insurance Tips for Purchasing a New Vehicle

Insurance Tips for Purchasing a New Vehicle

Insurance Tips for Buying A Vehicle

There are a lot of factors to consider when purchasing a new vehicle. Between fuel efficiency, safety ratings and that new car smell, it’s easy for considerations like registration and insurance to slip through the cracks.

For the most part, getting a BC vehicle registered into your name is a straightforward process, but occasionally some speedbumps can pop up along the way. 

Read on for our tips to mitigate disaster and get your new vehicle on the road.


Check for Damage

Every vehicle comes with baggage, and the incidents of a car’s past can affect its current safety – not to mention your wallet.  In a worst-case scenario, that vehicle you purchased may not be eligible for on-road licensing, so doing your homework is a must!

How can you know if that hatchback on Craigslist is harbouring any dark secrets?

The first thing to do is ask the seller directly about any accidents or flood damage. Be sure to get their response in writing.  This is especially important to find out for vehicle’s damaged by flooding, as they do not qualify for licensing in BC or Canada.

Purchasing a Used Vehicle

For a more detailed look into a car’s history, consider purchasing a vehicle claims history report online from CARPROOF or ICBC.  For $20 to $40, a potential buyer can see a vehicle’s accident history, view any outstanding inspections, and even determine whether it’s been reported as stolen.

Finally, it never hurts to have a vehicle inspected by professional mechanic.

Get a Quote

It’s important to factor in the costs of registering a vehicle and purchasing insurance into your new vehicle costs – especially if you’re on a budget.  Car insurance isn’t created equally, and rates vary based on a vehicle’s make, model, age, and what it’s being used for. 

Car Insurance Quote

Fortunately, a good insurance broker can easily compare rates between private and public insurance, as well as provide an overview of available coverages and their deductibles.  By taking a few minutes to get a quote, you will have a good idea of what your final costs will be, and how they work within in your budget.

(Carefully) Complete the Transfer/Tax Form

What’s the most common hurdle faced when transferring a vehicle into someone’s name? Answer – an incorrectly filled out Transfer/Tax form!

Completed by both the buyer and seller, the Transfer/Tax Form can be picked up at any Autoplan Broker in BC. (Including SeaFirst!)  Sellers are required to fill in their portion of the document, as well as provide the buyer with a signed copy of the vehicle registration form.

Selling a Vehicle in BC

For vehicles bought at a dealership, a broker is usually on-site to help with the transaction, although taking the signed paperwork to an insurance company of your choice is always an option.

It’s important to confirm all information is properly completed before parting ways with your seller, or you may need to wind up having to track them back down again!  Although not required, the safest course of action is for both parties to visit a broker together.  By having the seller on hand, any form errors can quickly be remedied, ensuring a quick and easy transfer.

Once a vehicle has been registered into your name, it’s finally eligible for insurance!

Ask about New Vehicle Replacement

New Vehicle Replacement Insurance is an optional coverage available for brand new vehicles from many insurers.

 While details vary, in general this coverage is meant to protect the value of brand new vehicle from depreciation in the first year.   If your vehicle is considered a total loss in this period of time, it is eligible to be replaced for its full value, or receive brand new parts from the manufacturer in the event of a partial loss.   

New Vehicle Replacement Insurance

Whatever coverage you choose for your vehicle, our brokers are here to help!  If you’ve got questions relating to auto insurance and you’re in the Southern Vancouver Island region, come see us at SeaFirst Insurance Brokers. We can help you get the best coverage to suit your automotive insurance needs.