Do you need insurance to buy a car?

Auto Insurance is mandatory in most states if you want to buy a car. The average cost of auto insurance is around $118/mo. You could save 10% now by comparing rates below.

Free Auto Insurance Comparison

 Secured with SHA-256 Encryption

Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

Full Bio →

Reviewed byDaniel Walker
Licensed Insurance Agenthttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/aiorg-live/d98a9f52-daniel-walker.png

UPDATED: Apr 20, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember...

  • Car insurance is mandatory in most states
  • You may purchase gap insurance while looking for permanent insurance
  • You may qualify for insurance discounts due to your job status, safe driving record, or other factors
  • Ask your online agent to help you find ways you can save more and how to more easily manage your auto insurance

Many individuals who shop for a new car already have some form of insurance, but they may not have insurance that is right for the car they are purchasing.

Shopping for a car is a good time to take a closer look at your current car insurance coverage and see if it will meet your needs. Researching car insurance coverage may also help you decide which car to purchase based on available coverage rates.

Searching for insurance coverage on your new car? Enter your ZIP code above and compare rates of the best car insurance companies in your area!

Finding the Best Insurance

First, consider the type of car you are buying. If you are purchasing a sports car, keep in mind that the insurance you purchase for this kind of car will be substantially higher than insurance you purchase for a less sporty model.

Consider whether having the sleek, sporty look of a Corvette is worth nearly doubling your car insurance premium.

Second, you will want to consider how much coverage to purchase. You need to make sure your investment is protected.

If you buy a very expensive car or one that is more costly to repair, your insurance will be higher. Buying a car that is a few years old is an option to consider if you want your insurance rates to be lower.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Purchasing Temporary Insurance

One option for someone shopping for a car that does not want to purchase permanent insurance is to purchase gap insurance.

Gap insurance fills the gap while you are transitioning from one car to another in cases where your current insurance is not enough or when you are leasing a car.

Eventually, however, you will need to find permanent insurance that is specifically designed for your car and situation.

Tips to Cut Your Insurance Premiums

If you have decided that it is worth the cost to purchase a new car, your next step is to find the best insurance to save money on premiums.

There are some ways to help you cut the costs of your insurance premiums.

While purchasing auto insurance is a serious investment, there are some ways to decrease the amount you pay on your premium. Some of these strategies include:

  • Find a company that understands your needs – One of the things you should do first is to find an insurance company that will listen to your particular needs regarding your insurance. Find an insurance company that will cater to your particular situation and finds a policy that fits you the best.
  • Look for insurance discounts – Insurance discounts are one of the best ways to save money each month on your insurance premiums. Discounts may be available for a variety of reasons, such as government employee status, military status, safe driving record, student discounts, and many others.
  • Keep your driving record free of traffic violations – The best way you can keep your insurance rates low is to keep your driving record clean. Traffic violations are the main reason insurance premiums are increased, and you can decrease them for the same reason.
  • Compare policies and add-ons between companies – Most people avoid the extras or add-on riders when looking over an insurance policy, but this is often a mistake. Some of the extra benefits can save you a great deal of money if certain situations come up.

Free Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

How to Negotiate Your Car Insurance Rate

One little-known fact that many people are not aware of is that you may be able to negotiate your car insurance rate somewhat.

Even if your insurance company has set rules on how they calculate insurance, they may still bend a little to get you as a customer.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Questions to Ask an Agent

When you are shopping for car insurance, remember that your agent will present policy in the most positive light. They are required to be honest, but they may not answer every question you have.

The following questions are ones you may want to ask your agent when shopping for car insurance:

  • Does the coverage for which I am applying cover my state requirements?
  • What are the limitations and exclusions?
  • What are the add-ons that might help me have more coverage in the event of an accident?
  • What kind of roadside assistance plan or car rental plan do you offer?
  • How fast do you pay your claims?

Any insurance company worth its premiums will be happy to explain all of these questions to you and to give you answers that meet your expectations.

You are required to meet the state liability and bodily injury minimums at the very least.

Some add-ons or riders will be beneficial, while others may just be repeats of what you already have with your health insurance, so ask questions about what the auto insurance policy covers.

The rate at which a car insurance company pays its claims without issue is one of the best indicators of a sound, financial company that has the money to pay when you need it.

Remember you do not have to purchase until you are ready. Your car insurance is important, and you should make sure that it meets the needs of your new automobile purchase and that you have no gap in coverage.

Enter your ZIP code below to access car insurance rates in your area today!

References:

  1. http://www.kbb.com/car-advice/articles/the-most-expensive-and-least-expensive-cars-to-insure/
  2. http://www.investopedia.com/articles/pf/06/carinsurance.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186
  3. http://www.iii.org/article/nine-ways-to-lower-your-auto-insurance-costs
  4. http://www.iwillteachyoutoberich.com/blog/tip-13-negotiate-your-car-insurance/
  5. http://www.investopedia.com/articles/pf/08/beginner-guide-auto-insurance.asp?ad=dirN&qo=serpSearchTopBox&qsrc=1&o=40186

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption