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Car Insurance for a New Vehicle

Car Insurance for a New Vehicle

Notifying Your Insurance Company

If you are going to transfer your current car insurance from your old vehicle to your new one, or are planning to switch to a new provider altogether, it"s your responsibility to alert your insurance company. Do not assume you are covered if you do not make a call. It is a good idea to call your car insurance company before you buy your new car, if possible. This will ensure you know exactly how you’ll need to move forward with your insurance before you even drive your car off the lot.

The Benefits of Gap Coverage

Once you drive a car off the lot, the actual cash value depreciates significantly. If you’re going to have a loan or lease on your new ride, you can protect yourself financially by opting for gap coverage. Gap coverage takes into account the dangers of depreciation and covers the difference between your loan amount and the car"s actual cash value if it was totaled in a crash. This ensures you are not left with a large car loan bill and no car, if your vehicle is totaled in a serious accident. If your current company does not offer gap coverage, you may wish to look around at other options in the market to make sure you have financial protection. To learn more about this type of car insurance coverage, visit our Gap Coverage page.

Car Insurance Premiums

When you transfer car insurance to a new car from your existing car, don"t be surprised if your insurance premiums change.
  • They may increase if the vehicle is more costly to repair or represents a greater risk to the insurance company.
    • Examples include sports cars and luxury vehicles.
  • They may decrease if the vehicle is cheaper to repair or presents a lower risk.
    • Examples include affordable cars and those with many safety features.
If you are looking to save money on insurance, hybrid vehicles may be a good choice. Several insurance providers are now offering lowered rates on hybrid vehicles in an attempt to encourage more people to "go green." Whichever vehicle you’re considering, getting multiple car insurance quotes will give you a good idea of the rate ranges you can expect.

Multivehicle Discounts

If you plan on keeping your current vehicle, adding a new car to your current policy may be a way to help you save money. Most car insurance companies offer multivehicle discounts, which lower the cost of additional vehicles added to the policy. Talk to your current auto insurance agent about the availability of this discount type. Remember, auto insurance is a crucial part of the puzzle when purchasing a new car. It is essential to do your due diligence to avoid any unwanted surprises – such as higher premiums – later.

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