How to Get Auto Insurance for a New Car

If you’re buying a new car, you need to get insurance. It’s a legal requirement in most states, and dealerships may require you to have coverage before letting you drive off the lot. Before you buy, gather the necessary information to start getting quotes. It includes the year, make and model of your vehicle and the ages and driver’s license numbers for all drivers.

Shop for Coverage

When shopping for car insurance, matching the coverage with your driving needs is important. It may mean adding ridesharing coverage or roadside assistance or increasing liability protection limits. Having the right coverage can help reduce the risk of medical costs, property damage or even vehicle repossession in the event of an accident. While getting quotes through a captive agent is one option, many shoppers prefer to shop independently for better prices and coverage flexibility. Online tools like can make this easier by comparing several providers’ personalized rates and policy options. You’ll need basic information for everyone on the policy to get a quote.

Review Your Policy

Buying a new car can be an exciting experience. From the pristine interior to the single-digit odometer, there’s something about driving off the dealership lot that makes you feel confident. Before you drive off the lot, however, you should take time to find auto insurance for your new vehicle. It ensures proper coverage and is one of the best ways to save money on your premium. While the type of car you’re driving will play a major role in your policy cost, other factors also affect your rate, including your location and marital status. The best way to keep costs down is by shopping with multiple insurers before choosing a policy. Some policies include a grace period that allows you to add a new car to your existing policy for a limited time. If you’re not using an approach that provides this feature, add your new vehicle as soon as possible.

Make Payments

Typically, the type of car you drive and your state’s minimum requirements determine the coverages you need. However, you may want (and your lender might require) extra coverages like collision and comprehensive insurance.  Be sure to get quotes on the car model you’re buying to compare prices. And remember that your credit is one of the biggest factors in determining your rates, so it’s important to check your credit report before applying for any new car insurance. Purchasing your insurance before or on the same day you buy your new car will give you proof of coverage when you go to the dealership. Most insurers can provide this service quickly and easily online or over the phone.

Determine Your Needs

Car insurance isn’t just a legal requirement; it protects one of your biggest assets. And while the minimum amount required by your state and lenders may be sufficient, most people should consider supplementing their policies with additional coverage to help pay for expensive repairs or a total loss. Start with medical payments, or “med pay,” which covers reasonable medical expenses for you and your passengers after a crash, regardless of who was at fault. Consider uninsured/underinsured motorist coverage (UM/UIM), which pays for your losses if you’re injured by a driver who doesn’t have enough or no liability insurance. Finally, comprehensive coverage pays to repair or replace your vehicle if an event outside of a collision damages it—think theft, fire, a natural disaster or a piano falling on your car from a rooftop concert. However, a high deductible will increase your premium, so consider the tradeoffs carefully. Adding gap coverage to your policy is also wise because new vehicles depreciate quickly.

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