Ah, there’s nothing like that new car feeling when you buy a car — that distinct new car smell and the lush interior. The techy gadgets and the sweet sound system. But after you finish selecting all the options you want, there’s one more you might consider. And that’s a small add-on to your auto insurance policy.
Let’s say you get into an accident a week after buying your new ride. Cars do depreciate the minute they’re driven off the lot. According to Carfax.com, new vehicles lose value at an average decline of 15-25 percent each year during the first five years. That means if your new ride gets totaled, your insurance payout could be much less than what you paid for the car (or what you owe on your loan, for that matter). Read more from Erie: https://www.erieinsurance.com/blog/new-auto-security-add-on