Buying A New Car: How To Get Insurance

Posted on: 26 February 2021

If you are buying a new car, you will want to make sure you have insurance before you drive the car home. When it comes to getting an auto insurance policy on a new vehicle, there are a few things you are going to need to do.

Gather Up Information

First, you are going to want to gather up all the information you have about the car. You are going to need the make, model, and year of the car. You will need to know the trim package details, including information such as the material of the seats, the type of navigation system, and any "extras" like a moonroof or power windows.

You will also need to know the vehicle's mileage, as this impacts insurance rates. Finally, you will need to know the VIN of the vehicle; most insurance companies will not provide you with a quote without the VIN. You can easily find the VIN on the car or ask the dealership for that information.

Get Quotes

Once you have the basic information on the car, you will want to get a few quotes. If you already have a company you have car insurance or other insurance policies with, you will want to contact them to get a quote. They will want to keep your business and should offer you a competitive quote. You should also get a quote from a new insurance company or two, so you can get a general idea of the market cost of insurance for the vehicle.

You can use this information as well to help you determine if you want to purchase a vehicle.

Start the Policy

After comparing quotes, you need to call back the company you want to get insurance with. You are going to need to let them know the effective date you want the policy to start. This should be the date that you are purchasing the car and will be bringing it home. You will want to call them during the signing and have them email or fax the insurance declaration to you. You don't want to drive away from the lot until you have insurance on the vehicle.

Register the Vehicle

Next, you need to register the car with your Department of Motor Vehicles. You will need to bring proof of insurance and proof that you paid sales taxes on the vehicle, if applicable, where you live. You may also need to provide certificates showing the car passed safety and emission inspections.

Once you register the car, you will want to let your insurance company know the vehicle is registered. Your insurance company may request a copy of the registration.

When you purchase a new car, you will want to shop around for insurance and start your policy on the day you purchase your vehicle. Be sure to let your insurance company know when you have completed the registration for your vehicle.