Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: May 29, 2019

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Car insurance for a new car is easily obtainable however there are many things you should know about buying auto insurance for a new car.

Without the right type of insurance, you can quickly find yourself upside down on a car loan or personally liable for damages to your own vehicle.

Car dealers are in the business of selling cars and not in the business of selling auto insurance so before purchasing any vehicle you need to know how to buy car insurance for a new car.

Use our FREE quote tool to compare insurance rates today!

Always Contact a Car Insurance Company before you Fall in Love with a Car

Young drivers are most prone to this since the cost of owning almost any vehicle can seem very affordable when you look at all the advertisements around for 0% financing and $199 a month but the reality is that car insurance premiums play a large role in your total financial obligation for a new car.

While your 1981 Volkswagen Jetta may only cost you $20 a month in auto insurance premiums the cost of car insurance for any new car will be substantially higher. Young drivers under the age of 25 can often see car insurance premiums higher than the car loan payment for new vehicles.

Understand what Types of Car Insurance you need

Auto insurance comes in a variety of forms and a very common misperception is that car insurance will always cover damages in an accident. This could not be further from the truth as your insurance coverage will depend entirely on the types of auto insurance you have.

Most states require only liability insurance to comply with the law and many of the cheap car insurance policies around only contain bare minimum coverage.

The problem with liability insurance is it does not provide coverage for any damage to your vehicle or medical costs for your injuries. If the accident was your fault then all your expenses to get the car fixed or pay medical bills will be your responsibility.

New cars require much more car insurance than state minimum requirements especially if you are financing the vehicle.

The last thing you want is to get in an accident and only have enough car insurance to cover a portion of your car loan balance leaving you with a large unsecured debt.

GAP insurance is highly recommended for most new cars and very affordable (typically less than $20 a month) and this provides coverage for the GAP between replacement values and car loan balances in a total less accident.

Before buying a new car always understand the types of auto insurance available and contact a licensed car insurance company to inquire about how much it will cost to insure a new vehicle.

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Learn about Car Insurance Discounts

Car insurance discounts are not just for young drivers or good drivers. There are many ways to lower your car insurance rates with discounts based on the type of vehicle.

Car safety features, how many policies you have with the same company, how the car will be used and more.

However, the trick is to learn about what car insurance discounts exist in the marketplace and (regardless if the company has the discount listed on their website or not) always ask about every potential discount you see.

Drivers often save 20% or more using a combination of car insurance discounts and some even have dropped their premiums by well over 50%.

Compare Car Insurance Companies

This is probably the most critical step in finding the most affordable car insurance policy.

Young drivers are susceptible to only contacting those insurance companies with a catchy GECKO or funny ringtone and older drivers only contact the names they know from yesteryear.

The facts are that auto insurance is a highly competitive industry where your provider options can be 100 or more depending on where you live.

Many companies have no local presence but still offer superior service and industry ratings. Always start a car insurance comparison search online and try to compare at least 5 or 6 car insurance companies.

Premiums, discounts and policy options can vary greatly from one insurance company to the next.

Use our FREE quote tool to compare insurance rates today!