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You will usually need to purchase new car insurance before you drive your new car off the dealership lot or before the grace period expires.
Liability Car Insurance Explained
Written by: Daniel Robinson Written by: Daniel Robinson Author Daniel is the Guides Group Editor and has written for numerous automotive news sites and marketing agencies across the US, UK and Australia, specializing in car finance and car maintenance topics. Daniel is the group’s authority on auto insurance, loans, warranty options, auto services, and more.
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Edited by: Rashawn Mitchener Edited by: Rashawn Mitchener Managing Editor Rashawn Mitchener is a Guides staff editor with more than 10 years of experience covering personal finance and insurance topics.
For the most part, getting new car insurance is very similar to purchasing coverage for any other vehicle. However, there are some details, and you may have different needs when it comes to new car insurance than if you were insuring a used car.
At The Guides Group, we take a comprehensive look at how to get car insurance for a new car, from the main types of coverage to how much it might cost you. We also share some recommended providers from our 2023 list of the best car insurance companies and cheapest car insurance companies to help you get started.
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The Advisors Group is committed to providing reliable information to help you make the best possible decision about your car insurance. Because customers depend on us to provide accurate and accurate information, we created a comprehensive rating system to develop our rankings of the best car insurance companies. We collect data on dozens of auto insurance providers to rank companies based on a variety of rating factors. After 800 hours of research, the final result is the overall rating for each provider, with the insurers with the highest number of points at the top of the list.
You should get insurance for a new car as soon as possible because many car dealers require proof of insurance before driving a new car. However, when you need to take out insurance depends on whether the dealer offers a grace period, which gives you time after purchase to obtain a car insurance policy. Even with that in mind, we recommend comparing policies from several car insurance providers before purchasing a new car.
If the company offers a grace period, it usually lasts from seven to 30 days from the date of purchase. This grace period is a specific amount of time that you are allowed to drive your car without starting a new insurance policy. Whether you get a grace period depends on several factors, including:
Since grace periods vary from company to company, it’s best to know exactly what your policy will allow. You can find this information in the printout of your contract, but it may be easier to ask your insurance agent.
How To Get Car Insurance Before You Buy A Car
If you purchase insurance before getting a new car, the policy will start the moment you drive your car out of a parking lot. Dealers often ask for this because it is illegal for anyone to drive without car insurance.
You will need the following information available to start a new car insurance policy before purchasing the vehicle:
Most car insurance providers will be able to start your policy within 24 hours, and you can also find same-day insurance from many car insurance companies.
According to our research, the national average cost of comprehensive auto insurance is $1,730 per year. However, your insurance premium will likely vary based on personal and vehicle-specific factors.
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Technically, whether the car is new or used does not affect your profits. However, you will see new car prices rise if it is more expensive overall than your previous car.
In our research, we found that State Farm tends to be the best overall auto insurance provider because of its affordable rates, coverage options, and customer service. However, there are many other providers that are also worth considering, if you are looking for the best insurance for your new car.
The value of your car is one of several factors professionals use to determine insurance premiums. When insuring any vehicle, new or used, many factors are taken into consideration, such as its age, driving history, and credit score.
Purchasing a new car insurance policy is very similar to obtaining insurance for another car. With many insurance companies, you should be able to find coverage, purchase and start your policy while standing in the store.
What Is Full Coverage Car Insurance?
The process of obtaining new car insurance coverage is simple. All you have to do is follow these steps:
Most of the time, new cars do not require any type of insurance coverage compared to other cars. The types and amounts of coverage you need depend on other factors, such as where you live and whether your lender has additional requirements if you get a new car loan.
Each state has minimum insurance requirements. Typically created by the Department of Motor Vehicles (DMV) or a similar state agency, these standards often vary widely.
You can find your state’s requirements and our recommendations for providers with the cheapest rates by clicking on your state on the map below:
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Minimum requirements always include some variation in the auto insurance coverage options listed below.
Some lenders require borrowers to carry additional new car insurance that covers damage to the car in all circumstances. This is intended to protect the financial interests of the lender. That’s why you may need to choose additional coverage options like these if you get a new car loan:
While the standard options are mostly the same from one provider to another, many insurance companies differentiate themselves through additional options. Many of these add-ons help manage other aspects of owning a new car, such as breakdowns and emergencies.
Most auto professionals offer unique lines of optional new car insurance policies. You can learn about all the available options as well as what each plan covers by speaking with an agent.
Calculate Insurance Rates
It’s best to get new car insurance before you buy it – and in most cases you will need to. Fortunately, you have the ability to quickly get auto insurance quotes online or over the phone with insurance policies that can start the same day, if necessary. We recommend comparing car insurance rates from multiple providers before purchasing a new car.
It is very easy to look for car insurance that can be done while waiting for the finance department or any other delay related to purchasing a car. Our team recommends State Farm and Travelers as good places to start your search.
State Farm is the nation’s largest insurer and received the highest scores among all providers in the 2022 Insurance Survey. Drivers can always find inexpensive new auto insurance through State Farm, and the company offers a wide range of additional coverage options. With a plethora of insurance deductibles to choose from, State Farm plan owners can get the coverage they want at affordable prices.
People looking to cover as many aspects of new cars or motorcycles as possible may want to take a look at Commuters. In our 2022 insurance survey, we found that the company has a broad regional portfolio, with many commuter options that appeal to new car owners. For example, the Premier New Car Alternative® program will cover the replacement cost of a brand-new car of the same make and model in the event of a total loss.
What Are The Minimum Car Insurance Requirements In California?
Purchasing auto insurance for a new car works the same way as it does for any car. With new car insurance, you usually have to purchase it before you actually own the car. Most dealers and brokers need proof of insurance to transfer vehicle ownership to you.
A new car is often more expensive to insure than the car it replaces, but not because you are the first owner of the car. Newer cars are usually more expensive to insure because they are more expensive and the value of the car is a major factor in the cost of car insurance.
By law, you must carry the minimum insurance in your state to buy a new car. However, if you take out a loan for your new car, your lender may require you to carry additional types of insurance.
How often you should add a new car insurance policy depends on your professional. Some companies offer a grace period that usually ranges from seven to 30 days, however this is especially important if you have your previous car insurance policy still in effect. By law, you will need to get car insurance when you take your new car on the road.
Used Car Insurance
Before purchasing an insurance policy for your new car, think
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