Get New Car Insurance to Protect Your New Vehicle.
Thinking about buying a new car? If so, you’ll need new car insurance to cover it.
Whether buying a new car for the first time, replacing a car or buying another one, auto insurance can be complicated. We’ve put together some of the most common questions about new car insurance to help you.
Should I Get Car Insurance before I Buy a New Car?
You’re going to need new car insurance before you drive your shiny new auto off the dealer’s lot. In fact, you usually need to provide lenders proof of insurance before you can be approved.
The best plan of action is to browse car lots to decide what kind of car you want before you go to the dealership to buy. This approach can give you some rough figures to work with. Once you have an idea of the car you are interested in, you have a couple of options:
After deciding what kind of cars you’re considering, and before you go to the dealership, use an online tool to get an idea of how much you’ll pay for car insurance. This will show you, roughly, what the rates might be for the cars you’re interested in. Cost can vary greatly between a sports car, say, and a sedan or compact car. You get the process started by entering your zip code and then answering some key questions.
Another option is to check rates while you’re at the dealership. You should be able to go online and figure out cost differences for new car insurance. Once you decide on the car to buy, you can then purchase insurance through an online service before you leave the dealership.
There’s another option that may be available to you, depending on the insurance company. Some insurance companies allow a grace period, anywhere from 5 to 30 days. Still, it’s wise to get coverage before you buy a new car.
What is the Best Way for Me to Get New Car Insurance?
You have several options for buying auto insurance coverage.
Online tool – As mentioned, an online service can generate quotes for you to compare. With EINSURANCE.com, you’re presented several carrier options and any special offers they may have for you. You then provide information to the providers you’re interested in and they send you quotes. By comparing rates and coverage details you can make your policy selection. You’ll be able to download proof of insurance and complete the buying process online.
If convenience, low-pressure assistance and often lower rates aren’t your top priorities, you can also purchase auto insurance through one of several other avenues including:
A national brand insurance agent – This can be a good option if you are busy and want more guidance for bundling your insurance with another kind of coverage, such as home or life insurance.
An independent insurance agent or broker – Independent agents and brokers don’t represent just one carrier. Instead, they work with different providers.
This article will give you a deeper look at the pros and cons of each of these options.
What Kind of New Car Insurance Do I Need?
There are three types of new car insurance you can buy and, depending on which one you want, you then can determine which carriers you want to approach.
Traditional – With traditional car insurance, policies take a variety of factors into account when determining rates. Age, gender, driving history and more are considered, even including your credit history. Choices range from the minimal amount required by your state to a full menu of other kinds of coverage add-ons.
Usage-based – Providers for usage-based coverage require you to install a device in your car. They want to get a look at the way you drive including habitual hard braking or accelerating and frequent late-night driving. These policies can save money if you’re an excellent driver and live in the right area, but they’re not available in every state.
Per-mile – These also require a telematic device in your vehicle. These companies want to keep track of how much you use your car. They also take other factors into account such as where you live, driving record, age, gender and so forth, but if you drive less than an average amount you can save with a per-mile policy.