With tax season around the corner, you may already be starting to plan for how you’re going to spend this year’s tax refund. If you anticipate receiving a substantial amount back, it could be the perfect time to get that new car you’ve been dreaming about. However, before heading to the nearest dealership, it’s important to give your upcoming investment careful thought, especially when it comes to the insurance coverage you will need. Here are a few tips for using your refund to make a successful car purchase.

How to Buy a Vehicle With Your Tax Refund

1. Research Your Options

Even if you have a good idea of what kind of car you want, it’s best to do some research before making a final decision. The Internet offers a wealth of information when it comes to vehicle safety and reliability ratings, as well as consumer reviews. You may discover that a different make and model is a better fit for your particular lifestyle and needs.

2. Shop for Car Insurance While Shopping for a Car

Whether buying a new or used car, it’s essential to keep auto insurance in mind as you shop. Certain types of vehicles cost more to insure, which must be factored into your overall budget. This is the only way to know how much you will be able to afford. Understanding how your coverage rates are affected by what you drive can also help narrow down your choices.

3. Consider Upgrading Your Insurance Coverage

Before you drive off the lot, you must show that you carry at least the minimum amount of insurance coverage required. This is a good time to consider applying part of your tax refund towards a policy upgrade. If you didn’t have sufficient protection before your car purchase, it’s likely you will want to change that to ensure your new investment is fully covered.

If you have decided to spend your tax refund on a new vehicle, the agents at Wilson Insurance Agency can help make sure you have adequate insurance coverage. For the last five decades, the agency has been entrusted to help residents in Dalton, GA, and the surrounding areas find affordable auto insurance without compromising on the quality of protection. They will review your current policy to determine if you have any gaps in coverage and go over the most suitable options for your unique needs. Call (706) 278-0549 to schedule an appointment, or visit their website to request a quote.