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Driving home in your new set of wheels is one of the best feelings out there, but let’s not forget one little detail: car insurance. To be legally road-worthy, every car must be covered by an insurance policy. That means you need to get your new ride on a policy before you can roll off the lot.
With so many variables, how much you’ll pay to insure your new wheels varies by your new cars value, safety features and more. Expect to pay more if you’re upgrading to a car that’s worth more or you’re signing up for a car loan or lease.
To get your new wheels covered and get on your way, you’ll likely want to make some preparations before you hit the dealership.
If you’re taking out an auto loan through a bank or dealership, the bank may require specific coverages for the life of the loan, and there are others you may want to add.
You can’t sign up for a policy unless you have the exact details of the car you’re purchasing — not just its make and model. But you can compare quotes for the make and model you’ve got your eye on, and a few others if you want to get a good spread. Vehicles of the same body type can have wildly different car insurance rates, even if nothing about the driver changes.
The year of the car and its safety features will have a huge impact on your rates. This is because safer cars mean less medical payouts, and slightly older models are almost always less expensive to repair and replace than brand new.
Get a good read on what the insurance will likely cost you, and which insurance carrier has the best mix of coverage and price.
Before you head to the dealership, you probably want to call, email or live chat with a rep from your current car insurance company. Once you have someone on the line, find out if your new car will temporarily be covered under your existing policy.
If it is, you can hold off on purchasing new coverage or adding it to your existing policy until you get home with your new ride. If not, you’ll want to get ready to buy a policy from the lot.
You signed for your car, you know your coverage needs and you have quotes — now it’s time to buy. Many car insurance companies let you buy online or over the phone. Have the make, model and VIN on hand when you go to sign up.
If you need to buy your insurance before you drive off the lot, don’t fret. You can usually get your policy confirmed within an hour and get rolling.
No, but if you already have car insurance, your new one is typically covered for the first few days under what’s called a grace period. Your old insurance coverage limits may not be enough to fully protect your new vehicle in the event of a loss, so you’ll want to make the change over to your new policy as soon as possible.
The grace period is short, typically under 30 days. Carefully read your policy so that you know whether yours covers a grace period for new vehicles and how long it’s good for.
To avoid ending up without coverage when your grace period is up, add the new car to your existing policy or get a new one as soon as possible.
If you’re shopping around for a good deal, you can save on insurance rates for your new car.
Several variables can affect the cost of your insurance. One of the biggest factors is the type of car you choose. It can vary the cost of insurance by hundreds of dollars per year — even for the same driver.
Here are the most common reasons people buy new vehicles and how that could impact your rates.
If you already have a car insurance policy, most insurance companies give you seven to 30 days to update your policy coverage with details of your new car. If not, you’ll need to have a policy in place before you can drive off the lot with your new car.
Once you’ve settled on the ride of your dreams, you’ll have the info you need to shop around for an insurance provider. Compare premiums and benefits to find the most comprehensive coverage you’re looking for at an affordable rate.
Compare car insurance companies near you.
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