Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 16, 2020

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Key takeaways...

  • You can easily compare car insurance quotes online
  • The make and model of your car and your driving history can affect your monthly premiums
  • It’s a good idea to compare at least three to five quotes before making a final decision

Buying a new car can be an exciting adventure even though many details will require attention. When buyers get caught up in the purchasing decision, reality strikes when the dealer asks for proof of insurance.

After the car is purchased is not the right time to consider the cost and availability of new car insurance quotes. Information is available to every consumer so that the cost of new car insurance quotes can be evaluated prior to the purchase of the car.

Let us do the hard work for you! Enter your zip code above and compare new car insurance quotes for FREE!

Table of Contents

Before Choosing a Model

Online research into the cost of insuring certain vehicle models will aid the consumer with the final choice of a new car and a new car insurance quote.

Models that are in the first year of production will carry higher rates until actual risk and loss statistics are gathered and evaluated by the insurance industry.

  • Specific Model – The Insurance Institute for Highway Safety – Maintains actual accident, theft and injury statistics that can be reviewed by the potential buyer. This information is updated each year based on actual events that are reported by public safety offices across the country.
  • Safety and Security – Factory installed safety features and security devices will affect the cost of new car insurance quotes for an automobile. The cost of purchasing these features might be offset by the new car insurance quotes savings so the savvy shopper will include these options in the quote process.
  • Driver Profile – The driver’s record will have a substantial impact on the cost of insuring any vehicle. Very expensive vehicles will be more affordable to insure for the driver with a clean driving record and excellent credit rating. Insurance companies reward responsible drivers by providing exclusive insurance classes to reduce premiums.

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Grace Periods

Driving a new car off the lot without contacting the insurance agent can present problems for the driver if something happens to the vehicle. Most dealerships will require proof of existing insurance prior to completing the purchase transaction.

Each state insurance commission sets minimum state car insurance requirements for grace periods that will cover a new car for drivers that meet certain criteria.

  • Existing Auto Insurance Policy – When the driver has an auto insurance that is in force, the insurance company will cover the new vehicle for the remaining term. The coverage is limited to the stated dollar amounts on the existing policy. Drivers must be aware of the differences in the new car’s replacement and repair costs on the existing auto policy.
  • Collision or Comprehensive Coverage – If the new vehicle will replace an older vehicle that had only liability coverage, the new car insurance quotes should be changed to include car insurance coverage for physical damage to the vehicle. The driver is not covered for physical damage without a grace period if the policy is not updated on the day the car is purchased.
  • Replacement vs. Additional Car – Buying a new car and retaining possession of the previous vehicle would require that the insurance company must be aware of both cars.

An existing policy would only cover the vehicle that the insurer knows about. The agent must be informed that the policy has become a multiple-vehicle policy and coverage is needed for both.

Insurance Estimates/Quotes

Every online quote must be evaluated closely to ascertain the exact coverage offered for the quoted premium.

Online quote information is a basic guideline that will change when contact is made with the actual insurer, so the consumer must be aware of the full process prior to making car-buying decisions.

  • Consistent Dollar Limits – Every policy quote must contain the same coverage amounts for collision, comprehensive and liability. If medical coverage is quoted on one policy, all of the quotes must contain medical coverage as well. Each policy that contains different amounts must be eliminated from the comparison.
  • Same Deductibles – Sometimes insurers will have separate deductibles for glass replacement. The risk of broken glass will be assigned a certain cost to insure the vehicle, which can affect the overall cost of the policy. Every policy in the comparison exercise should contain very similar deductible amounts for valid comparison of the premiums.
  • Liability Limits – One method for reducing the quoted premium is to drop the liability coverage amounts to the state minimum amounts.

Savvy insurance shoppers watch for this technique because of the importance of carrying sufficient liability coverage on every vehicle.

Any policy quote that contains very low liability amounts should be eliminated from the comparison.

Final Choices

The savvy automobile shopper will have a basic understanding of the insurance rates that will be charged for the models that are of interest.

Replacement value of the vehicle will drive the cost of insurance regardless of the selling price of the car.

Even if large discounts are applied when the car is purchased the risk of loss to the insurance company will be evaluated on the cost to repair or replace the vehicle with a similar car.

All online quotes must contain comparable insurance policy components and coverage amounts for the specific model. General information or inconsistent policy attributes will invalidate many of the quotes provided and cause the comparison to be inaccurate.

Find low-cost car insurance quotes today! Enter your zip code below to get started for FREE!

References:

  1. http://www.iihs.org/
  2. https://www.progressive.com/auto/
  3. https://www.esurance.com/insurance/car/states
  4. https://www.allstate.com/tools-and-resources/car-insurance/what-is-comprehensive-auto-insurance.aspx