4 Car Insurance Moves to Make if You’re Getting a New Car

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

When buying a new ride, it’s important to address key auto insurance issues, such as comparing rates on different vehicle models. Find out more. 

Most states require auto insurance coverage to be in place on any vehicle a person registers and owns. When buying a new car, drivers will need to make sure they’re complying with state minimum requirements and, most likely, getting additional coverage to fully protect their assets.

While the process of car shopping can be overwhelming, there are four key auto insurance moves to make during this time to ensure the right coverage is put in place on the new vehicle at the right price for a driver’s bank account.

1. Check rates on different automobile models

The make and model of a vehicle, and the safety features it has, can make a huge difference in how much a car costs to insure. Drivers who don’t want to get stuck insuring a costlier car may want to compare quotes on different models under consideration before buying.

So, for example, a motorist who is deciding between two or three different SUVs may want to get a quote for covering each model so they can take insurance costs into account when picking which car to buy.

2. Comparison shop to find the right coverage

Drivers should make sure they get the most affordable insurance for their new car.

While many people may default to adding their new car to their current insurance policy, this is not always the best move. A different insurer may provide better or cheaper coverage for the new car, so it is worth shopping around to see what different options are available.

It’s pretty easy to shop online and check out what different companies would charge to insure the new vehicle. Doing so could make it possible to get a much less expensive policy that offers the same or even better coverage.

Shopping around is also important in case coverage needs to be changed. For example, a policyholder who had no loan on their current vehicle may need gap insurance if they have a loan on their new one. So, it would be important to find an insurer offering affordable gap insurance coverage.

3. Put insurance in place before going to the dealer to pick up the car

Car dealers typically will not allow a driver to leave with a new vehicle that does not have proof of insurance. As a result, it is important to complete the process of shopping around for coverage and to get insurance in place before going to pick up the car. Otherwise, drivers could end up calling an insurance agent from the dealership to add the car to their policy.

A dealer should be able to help with providing the information necessary to get the right insurance coverage in place when the car is being picked up. This is especially important when a car is on order and is coming in at a specific time but may not be at the dealership and ready to pick up right away.

4. Cancel existing coverage on a car being sold

Finally, drivers should cancel their current insurance on the car they are selling so they don’t get stuck paying premiums for a car they no longer own. Don’t cancel until the car’s plates are transferred or turned in though, as a car still has to be insured as long as it’s registered and driveable.

Taking care of all these steps can help motorists ensure they are ready to pick up their new car and that they have the best, most affordable insurance in place for it.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More