How To Get Cheap Insurance for a New Car

NEWPORT BEACH, Calif. - March 12, 2024 - PRLog --

• In most states, you are required to carry liability insurance before you are allowed to drive.
• If you're financing or leasing your car, then your lender or lessor will also require you to maintain comprehensive and collision coverage.
• Gap insurance may be recommended if you made a small down payment on your car purchase.
• If you already have car insurance, you will typically have a grace period to add the new car to your auto policy.

You will always need to buy car insurance for a brand new car — it's just a matter of when. Say you have coverage on another car: You can drive the new car off the lot in many cases without buying a new policy on the spot.[1]

This is due to a grace period that many insurers offer to their customers, which can range up to 30 days. Taking advantage of this grace period does not mean that you can go without buying a new policy or adding the car to a multi-car policy. After all, they will need to adjust your premium because they are insuring another vehicle. If you neglect to add the vehicle to your policy, you will be uninsured after the grace period and create a lapse in coverage, which is sure to raise your premiums come renewal.

It costs $1,982 per year on average for full coverage, which is an auto policy that meets your state's minimum requirements plus collision and comprehensive coverage. If you opt for minimum coverage, the annual cost lowers to $549.[8]

Do New Cars Cost More To Insure?

There are generally two reasons for why insuring a new car is more expensive: They are often more expensive and they are financed or leased, which means that a lender will require full-coverage car insurance, which includes both comprehensive and collision insurance. In the event of an accident or theft/vandalism of the car, these coverages will help pay for damages or a total loss.

For the full article on how to buy insurance for a new car, visit https://smartfinancial.com/new-car-insurance