What You Need to Know Before You Buy a Car

Lifehacker covered auto insurance myths we need to stop falling for. One myth not covered is that your insurance will pay off your loan with a total loss.

A total loss within a year of purchase on a new car that is financed could mean leave you paying $3,000 to $10,000 (current value ? loan payoff) for a car you?ll never drive again. Guaranteed Asset Protection (GAP) is available on most new cars and standard on most leases ? the lease acquisition fee pays for the coverage ? to protect the lessor and you. GAP coverage is one of three reasons why leasing is the safest way to pay for a new car. For more check out vinadvisor.net’s FAQs.

• Insurance only pays out for the post-total value of your car. Hopefully you?ll never get into an accident where you total your vehicle, but no, your insurance company won?t just pay you what the vehicle is worth after the wreck (which in many cases, is next to nothing.) They?ll pay out for its value before the crash, but be warned?that?s probably not even close to what you might think it?s worth, or even close at all to Blue Book value.

• Insurance covers mechanical repairs and breakdowns. Again, this is usually something new drivers wind up believing, but no?your auto insurance doesn?t cover mechanical failures, wear and tear, and other breakdowns that are just part of owning a vehicle. It?s why it?s so important to find a mechanic you can trust, keep up on your preventative maintenance, and learn to do some repairs yourself. Even worse, calling your insurance company over and over to claim mechanical failures will lead to higher premiums for you in the long run.

originally published on http://vinadvisor.net; not written by me