Insurance for a new car? What you need to know

Buying a new car isn’t always as easy as “buy and goodbye.” There’s test driving, feature choosing and purchasing options to work out. The process of buying a new vehicle can be lengthy, but worth it in the long run. 

As you go through the car purchase process, there’s one key aspect to keep in mind: You should have an active car insurance policy for your new ride before you take it for a spin.

Whether you’re purchasing with cash, financing or leasing from a dealership or private buyer, it’s important to know

when you need to get car insurance after buying a car. Plus, we’ll share which coverages may be beneficial to have on a policy for new car owners. 

How soon do I need insurance after buying a car?

“Regardless of purchase method, as soon as you take ownership of a vehicle, insurance should be in place.”

– HiRoad insurance team

When you purchase online or at a dealership, you will be required to provide proof of insurance before you’ll be allowed to take possession of the vehicle. If you’re buying through a private seller, you generally won’t be required to provide proof of insurance or verify proof, but as soon as the vehicle title is signed over to you—you are liable. 

The recommendation from our HiRoad insurance team? As soon as you know which vehicle you're buying, get the VIN, year, make and model and have your car insurance policy set up before you even get the keys.

Car insurance for a new car

When you get any quote for car insurance, it’s valuable to keep a mental note of your lifestyle and what your car purchase will look like. Why? There are certain factors that may influence your car insurance rate, which is why it’s never a bad idea to ask yourself: 

• Am I

  leasing, financing or paying with cash? 

• Is my location prone to auto thefts or accidents?

• Am I a mindful, safe driver? 

Asking yourself these questions and others can help you better understand what car insurance coverages you’ll want or be required to have on your policy. To be helpful, here is a quick rundown of the most common car insurance coverages you may want to consider having on your new car insurance policy. 

Collision coverage is a loss that is caused by hitting or being hit by another car, as well as hitting an inanimate object like a tree, house or pole. 

Comprehensive coverage is physical damage coverage on an insurance policy. It can cover certain damages that don’t involve a collision (like theft or flooding).

Liability coverage helps pay for injury or damage to the property of others if you are legally responsible.

These are the big three coverages you may want to consider having when you are quoting car insurance. Not only are those coverages there to protect others, they can help to protect you and your new car.

What can happen without insurance

Not having car insurance on a brand new car may seem like an easy way to avoid spending more money, but in reality, driving without insurance can be even more costly.

We’ve written about the topic, but as a refresher—it’s illegal to drive without insurance in many states. And although the consequences of driving without insurance vary from state to state, generally speaking, you’ll likely be faced with fines and fees that cost more than most car insurance premiums.

All in all, it may not be a mindful choice to drive without insurance, especially with a new car that you’re hoping to keep around and in tip-top shape for the future. 

New ride, new miles with HiRoad

The feeling of a new car can be an exciting one, right? At HiRoad, we want the miles you put on it to be protected with a car insurance policy that has you and your car in mind. If you make mindful choices from behind the wheel (like driving at a safe speed and distraction-free), then be rewarded for it with car insurance from HiRoad. 

As you drive with our app, the telematics technology found within your phone recognizes your good driving habits and over time, rewards you for them every month with savings on your insurance bill. 

Plus, when you’re shopping for a new car in Arizona or Rhode Island, you can quickly get a quote with HiRoad in the app and get a policy in place in minutes—even on weekends. That’s a win-win. 

The information in this article was obtained from various sources not associated with HiRoad®. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. HiRoad is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. HiRoad makes no guarantees of results from use of this information.