Get Auto Insurance For Your New Vehicle: A Step-By-Step Guide

Getting a new car is exciting, but before you can drive it off the lot, you'll need to get car insurance. Here's a step-by-step guide on how to get auto insurance for your new vehicle:

- Know your grace period: Most auto insurance policies have a built-in grace period that lets you drive your new car with the same level of coverage as your previous vehicle temporarily. Grace periods typically last between seven to 30 days, so check with your insurance company to find out how long you have to add your new car to your policy.

- Locate your Vehicle Identification Number (VIN): The VIN identifies the exact make and model of your car, making it easy to get a quote and start a new policy. You can usually find the VIN on your vehicle's dashboard, near the edge of the windshield on the driver's side.

- Review your coverages: When adding a new car to an existing policy, the same level of coverage will typically apply unless you make changes. Review your coverages and make any necessary adjustments, such as setting comprehensive and collision deductibles as required by your lender.

- Provide proof of insurance: Dealerships will often require proof of insurance before you can drive your new car off the lot. Contact your insurance company or agent to add the new car to your policy and obtain proof of insurance.

- Ask about discounts: Don't forget to inquire about any available discounts, such as Multi-Policy Discounts, to save money on your insurance.

By following these steps, you can ensure that your new vehicle is properly insured and that you're getting the best value for your money.

Know the legal requirements for insurance in your state

Each state in the US has its own minimum car insurance requirements. It is important to be aware of the legal requirements for insurance in your state to ensure you are driving legally and have the necessary coverage in the event of an accident.

Minimum Insurance Requirements

Nearly all states require a minimum amount of liability insurance, which covers bodily injury (BI) and property damage (PD) caused to someone else. Liability insurance helps pay for any injuries or damages you cause in a car accident, including those of the other driver and their passengers. The minimum liability limits vary by state. For example, in California, the minimum coverage required is $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage. On the other hand, Oklahoma requires higher minimum limits of $25,000 for injury/death to one person, $50,000 for injury/death to multiple people, and $25,000 for property damage.

In addition to liability insurance, some states require additional types of coverage. For instance, about half of the states mandate uninsured/underinsured motorist (UM/UIM) coverage, which protects you if you are hit by a driver with little or no insurance. In some states, UM/UIM coverage is only mandatory for bodily injury, while others require coverage for property damage as well. Personal injury protection (PIP) is another type of coverage that is required in certain states. PIP covers medical expenses for insured drivers and their passengers, regardless of who is at fault in the accident. It can also cover lost wages or other benefits not covered by health insurance. Typically, PIP is only required in no-fault states, but a few at-fault states also mandate it.

It is worth noting that comprehensive and collision coverage are always optional, regardless of the state. However, these coverages are still important as they provide protection for damage to your vehicle. Comprehensive coverage includes protection for damage that occurs when you are not driving, such as from weather events or vandalism, while collision coverage pays for repairs to your car after an accident, regardless of who was at fault.

States Without Mandatory Car Insurance

It is worth noting that not all states mandate car insurance. New Hampshire and Virginia are the only two states that do not require car insurance. In Virginia, drivers have the option to pay an annual $500 uninsured motor vehicle fee to the state instead of purchasing insurance. However, this fee does not provide any coverage in the event of an accident, and drivers are still financially responsible for any damages they cause. In New Hampshire, while car insurance is not mandatory, residents are still liable for any bodily injury or property damage they cause in an accident.

Understand the types of coverage you need

Understanding the types of auto insurance coverage available is essential when purchasing a new vehicle. While the specific coverage you need may vary depending on your location and circumstances, here is an overview of the most common types of auto insurance coverage to help you make an informed decision:

Liability Coverage

Liability coverage is a fundamental aspect of auto insurance and is required in most US states. It protects you if you cause damage to others, including personal injury and property damage. Liability coverage can help pay for another person's medical bills, lost wages, legal fees, and repairs to their car or other property damaged during the accident. There are two types of liability protection: Bodily Injury Liability, which covers medical expenses and lost wages for injured parties, and Property Damage Liability, which covers repairs to property damaged in the accident (excluding your car).

Collision Coverage

Collision coverage protects your car from damage in any collision, regardless of fault. It helps pay for the costs of repairing or replacing your vehicle after an accident involving another vehicle or a stationary object. Collision coverage is typically required for leased or financed cars and may be mandatory in certain states.

Comprehensive Coverage

Comprehensive coverage provides an additional layer of protection for your vehicle. It covers repairs to your car due to incidents other than collisions, such as vandalism, weather events, accidents with animals, fire, falling objects, explosions, earthquakes, floods, vandalism, and more. Comprehensive coverage is often paired with collision coverage and may be required for leased or financed vehicles.

Uninsured/Underinsured Motorist Coverage

Uninsured motorist coverage protects you if you are in an accident with an uninsured driver or are involved in a hit-and-run. Underinsured motorist coverage, on the other hand, kicks in when the at-fault driver's insurance is insufficient to cover the costs of the accident. These coverages can pay for medical bills, repairs to your vehicle, and other related expenses. They are particularly important if you live in a state with a high number of uninsured or underinsured drivers.

Medical Payments Coverage

Medical payments coverage, often referred to as "MedPay," covers medical expenses for you and your passengers following a car accident, regardless of who is at fault. It typically includes hospital bills, doctor fees, treatment costs, medications, and ambulance fees. MedPay is optional in most places but can provide valuable financial protection if you or your passengers incur unexpected medical costs.

Personal Injury Protection (PIP)

Personal Injury Protection (PIP) is similar to Medical Payments Coverage but offers more comprehensive benefits. In addition to medical expenses, PIP can cover lost wages, rehabilitation costs, and funeral expenses for you and your passengers following a car accident. PIP is only available in select states, and its availability and requirements vary.

Compare quotes from multiple insurers

Comparing quotes from multiple insurers is a great way to find the best deal on auto insurance for your new vehicle. Here are some tips to help you get started:

Know What You Need

Before you start comparing quotes, it's important to know what type of coverage you need and how much coverage you want. Do you just need the minimum required by your state, or do you want full coverage? What about add-ons like roadside assistance or rental reimbursement? Knowing what you need ahead of time will make it easier to compare quotes from different insurers.

Gather Your Information

To get accurate quotes, you'll need to provide some basic information about yourself and your vehicle. This includes your name, address, date of birth, driver's license number, vehicle identification number (VIN), and the make and model of your car. You may also need information about your driving history, such as any accidents or tickets you've had in the past few years.

Use Comparison Tools

There are several online tools available that allow you to compare quotes from multiple insurers at once. These tools will ask for the information listed above and then provide you with a list of quotes from different companies. You can also call insurers directly or work with an independent insurance agent who can help you compare multiple quotes.

Consider Other Factors

In addition to the cost of the premium, there are other factors to consider when comparing quotes. Look at the coverage limits, deductibles, and any additional benefits or discounts offered by each insurer. You should also research the customer service and claims satisfaction of each company to ensure you're getting a good value for your money.

Shop Around

Don't just settle for the first quote you get. Compare quotes from multiple insurers to find the best deal. It's also a good idea to shop around annually or whenever your personal circumstances change to make sure you're still getting the best rate.

Choose your insurer and apply for a policy

Now that you have a shortlist of insurers, it's time to make a decision and apply for a policy. Here are the steps to follow:

• Research and compare insurers: Before choosing an insurer, it's essential to do your research and compare different options. Visit their websites, read reviews, and ask for recommendations from friends and family. Compare factors such as coverage options, discounts, customer service, and financial stability. You can also use online tools and websites that allow you to compare quotes from multiple insurers at once.
• Consider your coverage options: Determine the level of coverage you need. Decide if you want minimum coverage or higher levels of protection. Keep in mind that minimum coverage may not be sufficient in the event of a costly accident. Consider optional coverages like collision and comprehensive insurance, especially if you have a new or leased vehicle.
• Get a quote: Contact the insurers on your shortlist and request a quote. Provide them with the necessary information, such as your personal details, driving history, vehicle information (make, model, VIN), and current insurance coverage. You can usually get a quote online, over the phone, or by visiting their office.
• Review the quote and ask questions: Once you receive the quote, review it thoroughly. Pay attention to the coverage options, deductibles, and exclusions. If you have any questions or concerns, don't hesitate to ask the insurer for clarification. Make sure you understand exactly what is and isn't covered under the policy.
• Apply for the policy: After you've compared quotes and found an insurer that meets your needs, it's time to apply for the policy. You can typically apply online or by contacting the insurer directly. Provide all the required information accurately and honestly. You may need to provide additional documentation, such as proof of vehicle ownership, driving license, and address verification.
• Finalise the policy and make the payment: Once your application is approved, finalise the policy details and make the initial payment. Review the policy documents carefully before signing any contracts. Ask about payment options and choose a plan that suits your budget. Some insurers may offer discounts for annual payments or automatic payments.
• Obtain proof of insurance: After purchasing the policy, obtain proof of insurance, such as an insurance card or a digital copy of your insurance information. Keep this with you whenever you drive, as it may be required by law and will be needed in the event of an accident or traffic stop.
• Review and update your policy as needed: It's important to periodically review your policy to ensure it still meets your needs. Life changes, such as moving to a new location, adding a driver, or acquiring a different vehicle, may require updates to your policy. Contact your insurer to make any necessary changes and ensure your coverage remains adequate.

Remember, when choosing an insurer, consider not only the cost but also the coverage options, customer service, and the insurer's reputation and financial stability. Taking the time to research and compare will help you make an informed decision and ensure you have the protection you need when driving your new vehicle.

Get proof of coverage

Getting proof of insurance is a straightforward process. Once you've purchased a car insurance policy, your insurance company will typically send you proof of insurance right away. This can be mailed to you, or you can obtain it online and print it out or show it on your phone via your insurance company's mobile app.

In most cases, proof of insurance comes in the form of an ID card. The information on it varies but typically includes:

• The name and address of the insurance company
• The National Association of Insurance Commissioners (NAIC) number or "Company Number"
• The effective date and expiration date of the policy
• The first and last name of the "named insured"
• The insured vehicle's make, model, year, and vehicle identification number (VIN)

In addition to the standard proof of insurance, some drivers will need an SR-22 form, also known as a certificate of financial responsibility. This is used in cases when your license is suspended, such as after a DUI or DWI conviction. Your insurance company will typically file the SR-22 form for you electronically, although sometimes it needs to be sent by mail.

If you lose your insurance card, you can usually download a temporary insurance card to use until a hard copy arrives. You can also access your account online or contact your insurance agent to send you an updated copy of your insurance card.

It's important to keep your proof of insurance with you whenever you're driving. If you're pulled over by the police or in an accident, you may need to show it. In most states, you can show a digital copy of your proof of insurance, but there are a few exceptions, such as New Mexico, where an electronic copy may not be accepted.

Frequently asked questions