Car Insurance Quotes for New Cars

Jess Ullrich
Written byJess Ullrich
Jess Ullrich
Jess UllrichInsurance Writer
  • 10+ years writing insurance and personal finance topics

  • Former associate finance editor for Investopedia

Jess is a subject matter expert in insurance, banking, and other personal finance topics. Her byline has appeared in numerous top web media, including Investopedia.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated April 19, 2023

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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.

Quick Facts
  • Comparing quotes can help you find the best coverage for your car.

  • Dealerships typically check for proof of insurance when you buy a car.

  • If you have existing coverage, your insurer may give you a grace period for insuring your new car.

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]

Learn More:  What Is Gap Insurance for Cars? Do You Need It?

Learn More: What Is Gap Insurance for Cars? Do You Need It?

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.

Insurance CompanyAverage Monthly Quote: Liability OnlyAverage Monthly Quote: Full CoverageInsurify Quality Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
TravelersN/A$2004.3
NationwideN/A$1534.1
Progressive$157$2834.1
Safeco$127$2323.8
Farmers$90$2213.8
Liberty Mutual$282$3503.8
State Auto$107$2943.8
Elephant$170$2313.6
Mercury$215$2473.6
National General$152$4033.5
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

See Also: How to Get Auto Insurance on a Saturday

See Also: How to Get Auto Insurance on a Saturday

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.

See More: The Insurify Guide to Car Insurance Discounts

See More: The Insurify Guide to Car Insurance Discounts

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New-car insurance FAQs

If you still have questions about how the process of insuring a new car works, find answers to common questions consumers ask below.

  • Which insurance company is best for a new car?

    The right insurance company for you depends on several factors, including where you live, your driving history, how often you drive, and the type of car you drive. Comparing companies using an insurance-comparison tool can help simplify the process of getting the best possible coverage.

  • How long does it take to add a new car to your insurance policy?

    The time it takes to add a new car to your insurance policy may vary depending on your insurer. But you can typically complete the process fairly quickly, and many insurers can issue your new policy in a matter of minutes. Depending on your insurer, a grace period of up to 30 days may also apply when you transfer coverage to a new vehicle.

  • Is insurance more expensive on new cars?

    It could cost more to insure your new car, as older vehicles generally cost less to insure. But your premiums will depend on factors like your new car’s features — whether it has anti-theft devices or safety features — as well as your driving history, location, age, gender, credit history, and more.

  • Is there a grace period for insurance when buying from a private seller?

    Depending on your insurance company, a grace period of between seven and 30 days may apply, whether you purchase a vehicle from a dealership or a private seller. Contact your insurance company to determine if it offers a grace period, as well as the length of that grace period.

  • How long do you have to insure your new car?

    The grace period for insuring your new car varies by insurer, but it generally lasts between seven and 30 days. The time frame may be shorter or longer, depending on your insurance company.

Sources

  1. Experian. "State of the Automotive Finance Market Q4 2022." Accessed April 12, 2023
  2. Insurance Information Institute. "Insuring a leased car." Accessed April 12, 2023
  3. Insurance Information Institute. "What is gap insurance?." Accessed April 12, 2023
Jess Ullrich
Jess UllrichInsurance Writer

Jess is a personal finance writer who's been creating financial and business content for over a decade. Her work is published on Investopedia, MoneyWise, NextAdvisor, The HuffPost, and more. Prior to freelancing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz. Connect with her on LinkedIn.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

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Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.