Are you wondering how to insure your car? Your current policy will cover your car as soon as you drive it off the lot. This is usually the same coverage level as your previous car. You could end up at the dealership or worse, in violation if your policy doesn’t provide liability or damage protection.
Car insurance when buying a new one
Your insurance doesn’t need to be transferred to your new vehicle right away. Most insurers allow you to update your policy during a grace period. Your dealer will usually only need proof of insurance before they give you the keys. If you have the vehicle identification number, even if your car doesn’t have auto coverage, you can still start a policy.
What is the cost of insurance for a brand new car?
A new car will usually increase your rate as it is more valuable than the one you have. The following factors will affect the cost difference:
- Year model
- Model and make
- History of title and damage
- Coverage purchased
If you are starting a new policy, other factors could impact your rate. Even if your rate rises, there may be discounts available, such as the smart vehicle discount for automated emergency braking (AEB). *Disclaimer: Simply get a quote online, or call us, to find out which discounts you are eligible for.
Do I need to get insurance quotes on a new vehicle before I purchase it?
Yes. It is important to understand how your purchase will impact your insurance rate before you make a decision. Even if you don’t have a policy with us, you can get a quote online or call 1-866-749-7436. We are happy to give you a quote on any car that interests us.
Do I have dealer insurance?
No. No. Dealer insurance covers test drives but not once you purchase the car.
For purchasing a car new, you will need insurance
Vehicle financing
Financers usually require comprehensive and collision coverage. If you are at fault in an accident, your state will require that you have minimum liability coverage. This covers you for any injuries and damages you cause.
Other coverage options: You may also want loan/lease payoff coverage, also known as gap insurance. If your vehicle is totaled, loan/lease payment coverage will cover the difference between the amount you owe and the actual car value.
Leasing vehicle
Leasing companies usually require comprehensive and collision coverages. They may not allow you choose a higher deductible than $1,000. A higher liability coverage amount is required, usually at $100,000 per person and $300,000.
You may also consider loan/lease payment coverage in the event that your vehicle is totaled before your lease expires. You should check whether your lease agreement includes gap insurance before adding it to your auto policy.
Vehicle owned (no lienholder or lender)
Coverage requirements: Your state may require you to have a minimum amount of liability coverage.
You may also consider adding collision and comprehensive coverage to your vehicle. Your insurer won’t pay you any money if your car is damaged, stolen, vandalized or damaged in an accident.
We are available 24 hours a day to add your new vehicle to your existing policy, or to get you started if this is your first customer.
What new cars are the most affordable to insure?
Cars with the smallest and most expensive claims are usually the least expensive to insure. Insurance professionals call claims losses. The number of losses for a car can help you estimate how much it will cost to insure.
The section below lists a few recent model-year SUVs (2015-2017) with the lowest average loss rates for bodily injury claims within their size class, based on data from the Insurance Institute for Highway Safety. A lower percentage of vehicles will be more expensive to insure than ones with a higher percentage. However, it is important to remember that this data does not include actual insurance costs.
Small SUVs
Subaru Forester 4dr 4WD 4WD with EyeSight: 52%
Honda CR-V 4dr/4WD: -50.5%
Subaru Forester 4dr 4WD: -31%
Large SUVs
Ford Expedition 4dr +4WD: -32.5%
GMC Yukon 4dr 4WD – -27%
Toyota Sequoia 4dr 4WD – -25%
Source: Insurance Institute for Highway Safety – Highway Loss Data Institute (IIHS -HLDI).
** Data based on bodily injury claims for all SUVs that are tracked by IIHS/HLDI in the same size class.
Although it is not an exact cost comparison, this information can help you find a car that will save you money on your insurance. When determining your rate, insurers will also consider other factors, like your car’s title or damage history.
What is the minimum time I need to add a car to my policy?
Your insurance company will give you a grace period of seven to thirty days to make any necessary changes to your policy when you buy a new vehicle. Progressive, for example, allows you to update your policy within 30 days if there is a claim. Your new vehicle will still be covered the same as your old car.
Could you provide proof immediately to the dealer?
Yes. Yes! We are available 24/7 to send proof of insurance to your dealership so that you can drive off in your new vehicle. Most dealerships will not allow you to drive away without proof of insurance. Often, your existing insurance will suffice.
What happens if I don’t have the lienholder information?
Ask the salesperson at your dealership. They will almost always have all the information you need. We don’t need this information to begin coverage immediately if it isn’t. However, the lienholder must be notified within two to three working days of buying the policy or adding a new vehicle to the existing one.
If I wreck my car, do you offer a replacement?
Your collision coverage will cover you for the fair market value. You may consider buying gap insurance, also known as loan/lease payment coverage. This will pay the difference between what the car is worth and what your loan owes.
Here are some tips for purchasing insurance for a brand new car
- Know your VIN. Having your Vehicle Identification number handy will speed up the quote process. You won’t be allowed to buy a policy without it.
- Let us know what you use it for. You might need extra coverage if your car is used for ridesharing, business errands, or other similar activities.
- Regular drivers: Add family members to your policy if they will be driving the new car frequently.
