Car Insurance Quotes for New Cars

If you plan to purchase a new car, you likely have questions about the process of getting insurance, especially around whether you need coverage immediately. You’ll need proof of insurance to drive your car home because most states require car insurance. Getting a new car insured should be simple.

Insurance coverage you may need for a new car

Minimum insurance coverage requirements vary depending on the state you live in, and you’ll need to purchase the coverage required by state law. For instance, coverage requirements for Massachusetts drivers differ from coverage requirements for Pennsylvania drivers.

Beyond required insurance, your coverage needs also vary depending on how you choose to pay for your car, whether you finance, lease, or pay for it in full. Here’s what you need to know.

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When financing a car

Drivers in the U.S. finance 80.1% of new vehicles and 39.8% of used vehicles, according to Experian’s most recent State of the Automotive Finance Market report.^[1]

In addition to your state’s liability coverage requirements, the lender financing your car may also require you to buy collision and comprehensive insurance. A full-coverage auto policy generally includes liability, collision, and comprehensive coverage — and each protects you and your car differently.

When leasing a vehicle

In general, coverage for a leased vehicle resembles coverage for a financed vehicle, but your monthly leasing cost may include the cost of gap insurance.^[2]

Gap insurance covers the difference between a car’s value and the amount you still owe. If you total or badly damage your car in an accident, gap coverage will kick in if you owe more than the vehicle’s current worth.^[3]

When your car is fully paid off

When you pay off your car, you generally have more control over the insurance coverage you purchase. You won’t necessarily need to purchase full-coverage insurance, unless you want more robust coverage. You could potentially decrease your coverage to the required minimums.

Whether it makes sense to decrease your coverage depends on your car’s age and replacement value, how much you drive, and your driving record. Some car owners prefer the additional protection full coverage provides, while others prefer the lower cost of liability-only coverage.

Insurance grace period for a new vehicle

Unfortunately, insurers don’t have a standard grace period for getting insurance when you purchase a new car.

“Each insurance carrier has its own guidelines and policies regarding grace periods,” says Jesse Cunningham, licensed insurance agency owner at Bauple. “Typically, the coverage placed on the vehicle is dependent on the type of coverage you already had with your old car. For instance, if you had liability coverage, the new car may receive the same coverage for up to 30 days.”

While insurance companies commonly offer grace periods of between one week and one month, you should speak to your insurer about its guidelines if you plan to purchase a new car.

Best auto insurance companies for a new car

While the best auto coverage for you will depend on your unique situation, the following companies offer quality coverage that may work for you and your budget. Nationwide offers the cheapest average full-coverage rates, and it has a high Insurify Quality Score of 4.1 out of 5.

How Insurify’s experts used internal proprietary data to rate the top auto insurers

Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service’s database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across all driver ages, gender, credit scores, and driver profiles for Oklahoma drivers.

What is new-car replacement coverage, and how does it work?

Brand-new cars depreciate in value quickly. If you total your vehicle — or someone steals it — standard insurance policies may provide up to the current value of your car, but replacement coverage offers additional protection against depreciation.

If you opt for this coverage and experience total vehicle loss, you may receive a payout of your car’s original value instead of its current value. That way, you can purchase a similar car from the same model year as the original.

Do you need new-car replacement coverage?

You should consider new-car replacement coverage if you purchase a car with a recent model from the last year or two. Similarly, you may also want to get this coverage if you purchased a luxury or electric car, as these types of vehicles tend to depreciate more quickly. Assess your situation and speak to your insurance company to determine if adding this coverage makes sense.

How to switch car insurance to a new car

You can easily move an existing policy over to your new car after you purchase a new vehicle. You’ll likely need your new car’s VIN, as well as your personal and policy information in order to transfer coverage.

Follow the steps below to learn how to switch your policy to your new car:

1. Review your policy. Look at your existing policy to determine if you’d like additional coverage for your new vehicle. Your insurer can also provide recommendations if needed.

2. Log into your account. Some insurance companies allow you to add a new car to your policy through an online dashboard. If you know what coverage you want, you can simply log into your account and add your new car.

3. Call your insurance company. You can also contact your insurer to add or transfer coverage to your new vehicle if you prefer speaking to someone on the phone.

4. Get coverage. Lastly, purchase and finalize the coverage for your new car.

Tips for buying insurance for a new car

When buying car insurance, keep the following tips in mind:

• Research companies. Researching different insurers can offer insight into their overall reputations and what coverages they offer. This can help ensure you work with a reputable company that provides the coverage types you need.

• Use online comparison tools. These tools let you compare quotes from different insurers quickly, which simplifies the process of finding coverage.

• Contact insurance agencies. Reaching out to an insurance agency can also help you compare quotes more easily to find the best coverage for your situation.

How to save on insurance for a new car

You can save money on car insurance in various ways, depending on your driving profile and what insurer you get coverage from:

• Ask about discounts. Look into the discounts different insurers offer. Common discounts include safe driving, bundling, and more.

• Take a defensive driving course. Some insurers offer lower rates for drivers who take defensive or safe driving courses.

• Maintain a clean record. Avoid driving violations and accidents by driving safely; this will help you access cheaper coverage.

• Compare coverage. Getting quotes from different insurers for the same coverage levels will help you find the cheapest coverage option.

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