New Car Insurance – How to Insure A New Car - Bluefire Knowledge Center

New Car Insurance – How to Insure A New Car

by kwestfall - August 24, 2020

Getting a new car can be so exciting that you will forget about insurance as you zoom off from the dealership. However, you should know that you are not covered by dealer insurance once you pay for the car. The dealer’s insurance only covers for a test drive. So what do you do when you buy a new car?

Well, the approach to getting auto insurance for a new car will depend on a few factors. If it is your first car, you will undoubtedly need to purchase appropriate insurance before buying the vehicle. If it is not your first car, you may have a little time after the purchase to get the new car insurance sorted out.

Before You Buy the New Car

According to a study, about 13 percent of drivers in the United States do not have auto insurance (2015). If you are buying your first car (which means you don’t have car insurance), you must purchase insurance before paying for the vehicle. It doesn’t matter whether you are buying a new car or a used one.

Your current policy can temporarily cover the new car for a grace period if you already own a vehicle. This grace period varies from one insurer to another, and can also depend on the type of policy you hold. In many instances, the grace period will last from one week to 30 days.

Deciding the Perfect Insurance Policy for Your New Car

Before purchasing insurance, it is recommended that you shop around. Get car insurance quotes from different companies and compare them to see what is best for you. You will have to provide the details of the car you intend to buy. You can make this important inquiry before you buy the car or during your grace period. It is advisable to do it right before you buy the vehicle so that you already know the next step to take when leaving the dealership.

Ideally, your choice of insurer should depend on insurance rates, the overall cost of the policy, and the carrier’s reputation. You should compare rates and use a car insurance calculator to get better ideas when contacting different companies in your shortlist.

If You Decide To Stick To Your Current Carrier

If you’ve had an enjoyable experience with your current car insurance carrier and have decided to stick with them, it is time you review your policy. Make sure you have the right amount of coverage before leaving the dealership. You also need to provide the insurer with details of your new car early. So call as soon as possible to get your policy updated.

If You Decide On a New Insurer

If you have made up your mind to switch to a new car insurance company, you must start the policy process early for your new car. When you provide the details of the vehicle you intend to buy, the new carrier will provide all the insurance requirements. You should sort these out before buying the new car.

It is essential that you start the process of getting the best car insurance for your new car on time. If you are comfortable with your carrier, inform the agent that you are about to buy a new vehicle and provide the details. If you want an entirely new policy, there are other car insurance companies to contact and compare what they offer. Do these early so that you can drive out of the lot with full confidence that your new vehicle is properly insured.

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