Used car sticker shock? Here's how to prepare

Bob and Mary are sending their daughter, Grace, to college this fall and want her to find the perfect car to get around town in and to, of course, return home to see mom and dad! When they went car shopping, they found a shortage of new cars and eye-popping sticker prices on both new and used vehicles.

Bob and Mary aren’t alone.

The pandemic has had a major impact on the auto industry, and the ripple effects are still being felt today. Supply chain issues and production delays have left dealers short on new cars, and rising inflation has become another reason car buyers are now looking at used car options to avoid the months-long wait and higher sticker prices on new cars. 

While it may be difficult to avoid the sticker shock on pre-owned vehicles these days, car buyers today still should ensure they’re protected with an auto insurance policy that fits their needs.

“We’ve seen the trends our clients are seeing at new and used car lots, and we’re advising our clients to make sure they have the right coverage in place to cover the actual cost of replacing their vehicle, should it become damaged or considered a total loss,” said Darlene Cropp, a personalized casualty claims supervisor with Rockingham Insurance.

Darlene recommends adding both comprehensive and collision coverage to your auto insurance policy. Comprehensive covers damage to your vehicle not caused by a collision, such as contact with an animal, theft, fire, and vandalism. Collision coverage pays for damage to your vehicle colliding with another vehicle or object.

“Having the right coverage in place is always important, but with inflation and rising car values, a car that was valued at $3,000 could now be valued at $6,000,” Cropp said. 

Your local Rockingham Insurance agent is standing by to make sure you have the right coverage for your new or used car and can also discuss other coverage options such as roadside assistance and full safety glass coverage. And if you’re buying a car for your student like Bob and Mary, your agent can help you take advantage of savings that might be available to you, such as youthful driver discounts.