Getting car insurance for a new car is no different from getting car insurance for any other vehicle. However, you may have different needs when insuring a new car.
Buying car insurance for a new car is sometimes done even before you purchase the car as most car dealers would need proof of insurance before you drive off with the new vehicle.
Regardless, some car dealers offer a period of grace which gives you time to get your car insurance policy after purchasing the car.
The grace period usually lasts from about seven to thirty days and it begins from the date of purchasing the car.
You will only be given a grace period if you are rolling over your previous insurance policy into a new one and the period of grace varies from company to company.
What You Need to Insure Your New Vehicle
It is important to buy car insurance before paying for the car itself then the policy can begin immediately after you drive off the car dealer’s lot.
You can also buy car insurance after buying the car if you are offered a period of grace, however, there are some requirements you must submit to the car insurance company when you go insurance shopping, below are some of them:
- Purchase Price
- Vehicle identification number
- Your contact information
Your car insurance policy can begin 24 hours from purchase depending on the car insurance company.
How to Get Car Insurance for a New Car
The process involved in getting new car insurance is easy, follow the steps below to begin:
- Prepare the information you need as instructed earlier, your purchase price, VIN, and contact information.
- Begin shopping for quotes from car insurance companies. Take note that it is usually free.
- Make your choice and choose the best insurance provider
- Choose your coverage, limits, and deductibles
- Choose your payment plan and start your coverage policy
- Give the car dealers your new insurance card
Factors Affecting the Price of New Car Insurance
The insurance price for new cars may vary depending on some personal factors and car factors. Below are some of the factors.
- Age: a young driver will have it more expensive
- Driving history: a highly risky driver will have it more expensive
- Credit score: drivers with poor credit score will have it more expensive
- Location: drivers in urban areas will have it more expensive
- Marital status: unmarried drivers will have it more expensive
- Types of coverage: drivers who choose coverages above the minimum will have more expensive
- Coverage limits: drivers with high coverage limits will have it more expensive
- Deductible: drivers with low deductibles will have it more expensive
- Discounts: drivers without discounts will have it more expensive
- Vehicle: drivers with expensive and hard-to-repair cars will have it more expensive.
The Price for New Car Insurance
According to research, the national average cost of car insurance for new cars is approximately $1,730 per year.
While the cost per year may be $1,730 the premium price will be influenced by the factors discussed earlier such as the personal and car factors.
You are not being charged a premium based on the newness or oldness of your car, insurers are more concerned about how much they will spend on the car in case of an accident which can influence or reduce the rates.
Best and Cheapest Car Insurance Providers
Car insurance providers offer good and affordable rates, amazing coverage options, and excellent customer service, however, some providers go above and beyond to give their customers the best, below are some of them:
- State Farm with an annual cost estimate of $1,481
- USAA with an annual cost estimate of $1,054
- Geico with an annual cost estimate of $1, 308
- Erie Insurance with an annual cost of $1, 238
- Travelers with an annual cost of $1, 669
- Auto-Owners with an annual cost of $1,337
- Progressive with an annual cost of $1, 611
- Nationwide with an annual cost of $1, 281
With USAA as the cheapest, take note that they only attend to military and veteran personnel alongside their family members.
Geico has good reviews and can be considered, State Farm is a little pricey but it also offers good quality service to its customers.
Are New Cars Expensive to Insure?
A new car is usually expensive to insure because they are worth a lot of money and in the case of a replacement, it will be expensive to replace.
The cost of a car is a major factor in the cost of car insurance and thus influences the price of insurance for new cars.
To be on the safe side, ensure you buy your car insurance before you get the car especially if you are planning to buy the car with a loan.
What are the Minimum Requirement coverage options for a new car?
Each state has its insurance requirements, you can check the map to find out the requirements of your state, however below are the standard insurance coverage options you should have:
- Bodily injury liability insurance
- Property damage liability coverage
- Personal injury protection
- Medical payment
- Underinsured/uninsured car insurance
What if I took Out a Loan to Get my New Car?
If you took out a loan to get a new car, you may have to get additional coverage options to protect the lender’s financial interest.
Below are some of the insurance types you should have:
- Collison coverage
- Comprehensive coverage
- Gap insurance
- Loan or lease payoff