Buying Car Insurance for a New Car

There are few things more exciting than buying a car. Although it’s less exciting than buying a car, you must shop around for car insurance. This is a legally required component of buying and operating a vehicle. Now that you have found the perfect vehicle, it is time to ensure it remains protected.

How to get car insurance on a new vehicle

It is illegal to drive without insurance. Every state requires motorists have a minimum amount of coverage. This is why it is important to research your state’s requirements before you start shopping for car insurance.

Dealerships will provide you with their own options for insurance providers and policies when you buy a car. Although it may sound simple, you will not be able to compare quotes and choose the best deal by buying insurance from a dealership. If you want to get the best deal, it is wiser to do your own insurance shopping.

You can get quotes online or by phone if you already know what car you want. After you have selected your insurance provider and chosen the coverage you want, you can purchase the vehicle from the dealer and sign the paperwork. You will then need to contact your insurance company and provide the VIN number of your new vehicle. Then, you will have to pay the policy. After the payment is received, most insurance companies will approve your policy. If everything goes smoothly, you can drive your insured car home immediately.

Why insuring a new vehicle is more expensive

You want to protect your vehicle from any damage when you purchase a new vehicle. It is important to have adequate coverage in this instance. If you want to protect your car from any physical damage, you will need to add collision or comprehensive coverage. Insurance costs will go up when you add collision and comprehensive coverage. A car older than 50 years old may not need the same protection and can be satisfied with only the minimum coverage.

Insurance premiums for newer vehicles are higher than those of older models. Premiums may not be excessive if you have a vehicle with advanced safety features or a low claim rate, however.

Your driving record, your location and the type of vehicle you drive will all impact how much car insurance premiums vary. It is easy to compare quotes from different providers to find out how much you might pay to insure your vehicle.

Recommended and necessary coverage

Your legally required insurance coverages will vary depending on where you live. It is advisable to prioritize certain coverages if you have the funds.

  • Comprehensive: Although comprehensive coverage is not required if you own your vehicle, it may be necessary if the new vehicle is being financed. This coverage covers repairs for damage that is not caused by collisions. Comprehensive coverage is available if your vehicle is damaged by weather or stolen.
  • Collision: This insurance covers the cost of repairs to your vehicle if it is in an accident with another vehicle or object. This coverage may not be necessary if your vehicle has been paid in full. Your lender might require this coverage if you finance your vehicle.
  • Personal Injuries: These personal injury coverages cover those who are injured in an accident. States usually require that $50,000 be paid in personal injury liability per incident and $25,000 per person.
  • Property Damage – Property damage coverage generally covers $5,000-$25,000 per accident.

Some car insurance add-ons can be useful and even advisable. You might consider the following coverages if you recently bought a vehicle, or if you want to reduce the amount that you owe on your car.

  • New Car Replacement Insurance – You’ll be covered if your vehicle is totaled. The insurance company will determine whether your vehicle is eligible for this coverage. Allstate will replace a vehicle that is less than two years old if it meets certain criteria. Liberty Mutual will pay cash for a car if it is less than one year old and has less than 15,000 miles.
  • Gap InsuranceGap insurance aims to close the gap between what you owe and the cash value of your vehicle. This is a great option for people who owe more on their vehicle than it’s worth.

How do you transfer your insurance to a new vehicle?

It’s simple to transfer your existing auto insurance policy to your new vehicle if you have one. To make any changes, contact your insurance company by phone or log in to your account online. You can simply let your insurance agent know that you would like to add a car to your policy and sign off on the required coverages.

Questions frequently asked

What is the minimum time you must wait to get insurance after purchasing a new vehicle?

Most cases will not allow you to drive your car off the lot without proof of insurance. You cannot operate a new car without insurance. Before you think about purchasing a vehicle, contact your insurance provider.

Can you drive a car new without insurance?

You cannot legally drive a new car without having auto insurance.

Is it more costly to insure a brand new vehicle?

The cost of insuring a new car can be higher because it has a higher cash value. You may be eligible for lower premiums if your new car has safety upgrades and other features.

How can I get car insurance at a lower price?

Shopping around for the most affordable insurance options can help you save money on car insurance. You should also consider which coverages you need and whether you qualify for insurance discounts.