How to Get Insurance for a New Car

Purchasing a new car is exciting, but getting it properly insured is essential. This comprehensive guide will walk you through everything you need to know about insuring a new vehicle, including:

When to get insurance
Comparing insurance quotes
Full coverage vs liability-only
Add-on policy options to consider
How to lower premium costs
Switching insurance to a new car
Filing claims for a new car
Mistakes to avoid

Follow our tips to make sure your new car is covered from all angles, while still finding an affordable policy.

When Should I Get Insurance on a New Car?

Ideally, you'll want active insurance that kicks in as soon as you drive your new car off the dealer's lot. Here's when to secure a policy:

1-2 Weeks Before Purchase

Start shopping for quotes early so you can consider options and secure coverage to go into effect on your ownership date.

Before Signing Sales Paperwork

Inform your insurer of the exact purchase date so they can issue a new policy effective that day. Avoid gaps between shipping and delivery.

Immediately After Purchase

If still uninsured, contact insurers immediately after purchase and get emergency same day coverage until a standard policy can be issued.

Before Driving Off the Lot

Verify you have active coverage by receiving policy documents or contacting your agent before driving away. Don't drive uninsured!

Give yourself plenty of lead time in case quotes need to be revised or compared. You want your new vehicle insured the minute the sale is complete.

How to Get Quotes for Insuring a New Car

Getting multiple quotes ensures you find affordable insurance tailored for a new vehicle:

Research trim levels, prices, safety ratings

Insurers will want detailed data on the make, model, sub-model, and safety tech. Quotes are more accurate with complete info.

Provide the VIN number

The Vehicle Identification Number confirms all key details of your specific vehicle being insured, not just average data on the model.

Indicate policy start date

Make sure quotes reflect the precise date you are taking ownership of the new vehicle and need coverage to initiate.

Adjust limits and deductibles

Rate comparisons should be based on identical liability limits, deductibles, and coverage types.

Compare quotes from multiple insurers

Get quotes from direct insurers, brokers, and local agents to find the best price. Rates can vary significantly.

Review discounts

Make sure any discounts like safe driver, good student, defensive driving, etc. are applied to new policy quotes where eligible.

With some legwork, you can get multiple precise quotes for adequate coverage on your new car at the lowest available rates from a reputable insurer.

Should I Get Full Coverage or Liability Only?

A key decision when insuring a new vehicle is whether to get full coverage or liability only. Considerations include:

New Car Loan Requirements

If financing, most lenders require you carry comprehensive and collision to protect their investment until paid off.

Asset Protection

Full coverage provides peace of mind against damage or theft losses. Especially important on a valuable new car.

Out-of-Pocket Costs

With liability-only insurance, you must pay all repair costs to your own car after accidents. Collision coverage helps pay for repairs.

Local Weather Risks

In regions prone to major storms, glass damage, or deer collisions, full coverage is advisable to mitigate high claim repair expenses.

Driving Habits

More exposure from a long commute or high mileage use increases chances of an accident, making full coverage worthwhile.

Full coverage does cost more, but provides greater protection on a significant new vehicle investment. We generally recommend full coverage policies for all new cars if affordable.

Key Add-On Options to Include

Beyond basic liability, collision and comprehensive, key add-ons to potentially include are:

Gap Insurance

Covers the "gap" between what your car is worth and what you owe if totaled early on. Prevents upside down loans.

Rental Car Reimbursement

Pays for a rental car out of pocket while your vehicle is in the shop after an accident.

Roadside Assistance Coverage

Covers cost of on-demand towing and roadside help if you break down.

Glass Coverage

Provides full glass replacement from any cause. Prevents paying deductible for simple glass chips and cracks.

New Car Replacement

Pays to replace with new car of same make/model if totaled very early on, instead of paying out used value only.

While adding some options raises your premiums slightly, they provide valuable extra protections on a new car.

How to Get the Lowest Insurance on a New Car

To get max value insuring a new vehicle, follow these tips to reduce premiums:

Increase deductibles on collision/comprehensive to $500 or $1000 to save significantly.
Ask all insurers for discounts - multi-policy, new car, safe driver, defensive driving, etc.
Inquire about financing through insurer to earn additional rate discounts.
Optimize liability limits to your needs to avoid overpaying.
Bundle home or renters insurance with same provider for multi-policy discounts.
Join alumni or affinity associations with discounted group rates.
Consider usage-based programs to get very customized rates if low mileage driver.
Drop collision coverage after paying off car if over 8-10 years old.

Finding the right balance between risk coverage and premium costs takes a bit of work, but pays off over the life of your new car.

How to Switch Insurance to a Different Car

Already have insurance but buying a new car? Switching covered vehicles is easy:

1. Inform Your Agent Early

Alert your insurer of the new car purchase a few weeks ahead of delivery so they can prepare needed policy changes.

2. Provide New Car Details

Supply the VIN, model specs, safety features and usage details so your agent can accurately rate the new car.

3. Discuss Coverage Needs

Review liability limits, deductibles and add-ons to ensure appropriate protection levels for the new vehicle and how it's used.

4. Request New Policy Documents

Have your agent issue revised policy paperwork listing your new car that takes effect on the purchase date. Destroy old docs.

5. Verify New Premium Costs

Review the updated premium quote for the new vehicle and coverage and confirm it fits your budget.

6. Pay Any Additional Amounts

If premium increases with new car, pay any pro-rated additional amount to continue uninterrupted coverage at switch.

With advance planning, you can seamlessly transition insurance to your new vehicle quickly and efficiently.

How to File an Insurance Claim on a New Car

If the unfortunate occurs and your new vehicle is damaged, here are some tips for filing your first claim:

Document details - Note facts, take photos, get other driver and witness info. Provide police reports if applicable.
Contact your insurer promptly - Alert them within hours or days, provide details, ask about preferred repair shops.
Take it to an approved shop - Insurer will send an appraiser to inspect damage and prepare an estimate.
Send any bills related to accident - Forward medical bills, rental receipts, etc. to insurer quickly for timely reimbursement.
Follow up on claim status - Check in with your adjuster periodically for updates and to provide any additional details requested.
Review repair costs - Thoroughly review provided estimates for accuracy on listed damaged parts and time estimates.
Sign payment docs - When repairs near completion, review and sign any required insurer docs before they release payments to shop.

While some back and forth is common, proactively providing details speeds resolution of a new car claim.

Mistakes to Avoid When Insuring a New Car

Some key missteps to steer clear of with new vehicle policies:

Letting existing insurance lapse before new policy takes effect - avoid coverage gaps.
Forgetting to list lienholder if financing - they require evidence of coverage.
Being unclear on policy start date and delays - plan for seamless transition.
Not reading policy documents carefully later - verify accuracy of all details.
Making modifications before informing insurer - report upgrades that change value/risk.
Assuming cheapest insurance provides sufficient coverage - review limits needed.
Not shopping extensively for best rates - compare multiple quotes.
Skimping on liability coverage to save money - lawsuits can exceed minimums.
Delaying filing claims - timely reporting provides maximum coverage.

With vigilance, you can avoid common mistakes and get properly insured on your new car while maximizing savings.

FAQs

How soon must I insure a new car after purchase?

You should have active insurance in place the moment you drive the new car off the dealer lot. Avoid any lapse between taking ownership and having coverage.

Can I insure a car I don't own yet?

Most standard insurers require proof of ownership before issuing a policy. But specialty insurers can provide short term quotes and coverage for cars not yet purchased.

Is full coverage required for a financed car?

Nearly all lenders require you carry comprehensive and collision coverage for the duration of an auto loan, to protect their security interest in the financed vehicle.

What discounts apply to new car insurance?

Common new car-related discounts include multiple policy, new car safety equipment, new vehicle, safe driver/accident-free, and anti-theft discounts. Ask about all possible savings.

Does my old insurance transfer to a new car?

No, you will need to officially update your policy to change the covered vehicle. Your agent can make this switch quickly once you have purchase details ready.

Purchasing a new car is exciting, but be sure to immediately focus on getting proper insurance at the best available rates. Following these in-depth guidelines makes the process smooth and worry-free.

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