Buying New Car Insurance: Everything You Need to Know

When buying a new car, getting insurance should be one of the first things you think about. You can buy the car, but you can't drive it off the lot without proof of insurance. Whether you're updating an existing policy or buying a completely new one, your coverage needs will change. Factors such as the value, make, and model of your new vehicle will influence the cost of your premiums. Shop around to find the car insurance provider with coverage that meets your new needs for the right price.

You have a few options to get coverage for your new car. You can add the car to your current insurance policy, transfer your existing insurance to the new car, or buy a completely new policy. When it comes to getting insurance for a new car, the process varies depending on whether you have an existing policy or not.

If you already have a policy, you can simply update it to include your new car or transfer your insurance to your new car without canceling the current one. If you don't have an existing policy, estimate the coverage you need for your budget, legal requirements, and vehicle value, choose the right insurance company and obtain quotes from multiple insurers.

If you have a current car insurance policy, there are two ways you can quickly get coverage for your new car. You can add a new vehicle to your insurance policy or you can transfer your insurance to your new car

In either case, you don’t need to cancel your current policy and can be done with just a phone call or a few clicks on the customer portal. At any time during your contract, you can update your policy — remove or add coverage based on your new needs.

Whether updating a current policy or buying a policy for a new car, your coverage needs will likely change. You'll need to go through the process as if you're getting a completely new policy. Review your current policy and decide if the same coverages apply. Shop around and decide if you’re better off switching car insurance companies.

The cost of your premiums depends on the value, make, and model of your car. If you get a new vehicle, the premium will be different from insuring your old car. Doing your research will help you get the best car insurance that meets your needs.

Examining the table below, the average cost of a new car insurance policy for a Toyota Camry is $1,569 for full coverage and $617 for state minimum coverage. These figures give you an idea of what you can expect to pay, allowing you to make an informed decision that suits your needs and budget.

The driver's age and gender, driving history, location of residence, and the make and model of the new car influence the cost of car insurance. Credit score, annual mileage driven, previous insurance history, discount eligibility, and the chosen deductible amount further contribute to the premium.

• Driver's Age and Gender: Younger drivers, especially males, are often considered higher risk, leading to higher premiums.
• Driving Record: A history of accidents, traffic violations, or DUIs can increase the cost of insurance.
• Location: Where you live, and drive can impact costs, with urban areas having higher rates due to increased risk of accidents and theft.
• Vehicle Type: The make, model, and age of the car influence repair costs, safety ratings, and theft likelihood, all of which affect premiums.
• Credit Score: In some states, insurers may use your credit score to predict the likelihood of filing a claim, affecting your premium.
• Annual Mileage: The more you drive, the higher the risk of an accident, which can lead to higher premiums.
• Insurance History: Previous claims or lapses in coverage can lead to higher premiums.
• Discount Eligibility: Qualifying for discounts, such as multi-car, safe driver, or good student discounts, can reduce the cost.
• Deductible Amount: Choosing a higher deductible (the amount you pay before insurance kicks in) can lower your premium.

Each car insurance provider uses its own unique combination of factors to determine car insurance premiums for individual policyholders. While age, driving record, and vehicle type are commonly considered, the weight given to each may vary among providers. This approach allows insurers to assess risk and tailor coverage to meet each specific driver.

It is best to get insurance before finalizing the purchase of a new car since most dealerships require proof of insurance to drive the car off the lot. This way you have coverage from the moment you become the owner. You should start shopping for insurance quotes once you have narrowed down your vehicle choices, allowing time to compare options and select the best coverage.

Besides buying insurance for your new car, there are other money-smart reasons to shop around for coverage. Exploring your options can lead to significant savings, whether you're switching companies, moving to a different state, or benefiting from an improved credit or driving record.

You don't need insurance to buy a car, but dealerships require you to show proof of insurance before you drive off the lot. So, it's wise to have an existing policy or to arrange new insurance before buying your new car.

When you buy a new car, it doesn't automatically come with car insurance. You need to insure your car yourself. Car dealerships may offer you insurance, but this may not provide you with the best rates and coverage. You should shop around. By comparing quotes and understanding your specific requirements, you can select a policy that offers the protection you need at a price that fits your budget.

Yes, you have to get car insurance. It's a legal requirement in all states except New Hampshire and Virginia. Each state has its own set of minimum car insurance requirements, with varying policy limits and coverage types.The type of coverage you need will depend on whether you own your car outright or if you’re financing it:

• Owned cars need to have state minimum liability car insurance requirements.
• Financed cars need to have full coverage insurance, which usually includes liability, collision, and comprehensive insurance.

While not typically required by law, gap insurance may be mandated or recommended by lenders if you're financing your vehicle. This is important if you have a long-term loan or made a down payment. It ensures that if your car is totaled, you're not left owing more on the loan than the car's current value. You need to have car insurance whether you own your car or are financing it. You could face fines, lose your license, or face legal problems if you don't have insurance.

Below, you'll find a comparison of insurance rates between a 2012 Toyota Camry and a 2022 Toyota Camry. This comparison illustrates how rates can vary significantly based on the state you reside in. You can adjust the age and coverage options in the dropdown component to give you a personalized view to help you make an informed decision.

Liability insurance covers damages to others if you're at fault in an accident, but it doesn't provide protection for your vehicle, personal injuries, or other potential expenses. Adding more coverage beyond liability offers more protection, safeguarding against various risks and financial burdens.

Whether it's protection against uninsured drivers, coverage for personal injuries, or assistance with rental cars and roadside emergencies, additional coverage can provide financial security that suits your needs.