What's the best time to shop for auto insurance for your new car?

Written by Penny Gusner on October 16, 2012 & Posted in Auto Insurance

The best time to shop for auto insurance for your new car is before you go to the dealership to buy the vehicle.

After you've signed on the dotted line, it's too late to price auto insurance to determine if your premiums will make your new vehicle unaffordable. Find out the full cost of ownership while researching which make and model of car is best for you.

A big part of owning a car is the cost of auto insurance. You may be able to afford the monthly finance payments on a cool, high-performance vehicle, but the cost of insurance may be a budget buster.

You don't have to own a vehicle to get an auto insurance price quote; the vehicle identification number (VIN) of a car is only needed when you actually purchase your policy. Online you can easily get multiple car insurance quotes on different vehicles so that you can determine which autos have the cheapest insurance costs.

When doing comparison shopping, you need to take into consideration what types of coverage are required and what optional coverages you'll want to carry. Your state will mandate the minimum liability coverages and limits, and also personal injury protection (PIP) if you live in a no-fault state.

If you have assets to protect, you'll want to purchase higher liability limits. The insurance industry recommends bodily injury liability of at least $100,000 per person, $300,000 per accident and property damage liability of $50,000.

If you've financed or leased a vehicle, then you normally will be required to carry physical damage coverages of collision and comprehensive insurance. The lender or lessor mandates this coverage so that you'll have insurance coverage if the car is damaged and needs repair. The car is their asset, so the condition is important to them until you pay it off.

Knowing the car insurance coverages you need and their cost will make it easy for you to start up your policy once you purchase your vehicle. You can drive off the car lot confident in your financial decision.

SHARE THIS STORY

Featured Auto Insurance Companies

Insurify™️ - Virginia Drivers Can Save Up to 50%

  • The easiest way to compare 20 real quotes from top brands
  • Prices starting from $29/mo
  • Trusted by more than 4 million drivers - 4.9 star reviews
  • As seen on Fox News, WSJ, Forbes, Fortune Magazine

Ask Our Expert

View All

Q. Will my policy pay off my car loan if my car is totaled?
A. An explanation of what happens if your car is totaled out when you still owe money on your car loan or lease. Read More

Q. Will car insurance cover my stolen personal items?
A. If someone steals personal items from your car, will car insurance cover those items? Read More

SHARE YOUR THOUGHTS

Required parameter not set.
Request a Quote for:
Go

Recent Insurance Stories

View All
Simple ways to save on car insurance
If you can put in a little time to review your car insurance policy, it's possible to save hundreds, or more, on your annual auto insurance premium. Comparison shop. The No. 1 way to obtain cheap car insurance rates is to compare car insurance Read More...
  • How car insurance liability limits work
  • Road trips and car insurance
  • Uninsured motorist: What is it good for?
  • What covers car for storm damage?
  • Featured Auto Insurance Companies

    Cheap Auto Insurance - Save up to 40%

    • Top Rated Insurance Companies
    • Bundle Home & Auto for additional savings
    • Save up to 40%
    • Get Started Now!