How to Insure a New Car

Be sure to contact your insurance agent when you buy a new car.
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Since not all companies automatically insure you even if you already have a policy, you want to be certain that you can get insurance before you buy that new car. Some vehicles are also much more expensive to insure. It pays to compare vehicles when you go new car shopping because the more horsepower a vehicle has, the higher the insurance rate will be. The trick to saving money is in knowing what items can get you a good deal on your auto insurance.

Step 1

Contact your insurance agent for a quote on both comprehensive and collision insurance. If you are financing the purchase of a brand new car, it's likely that your lender will require you to have collision protection. Your insurance rates will be higher, especially if you only carried liability coverage on an older car.

Step 2

Get a quote before you sign the paperwork at the dealership. First, you want to make certain that you can insure the car. Second, you want to know the insurance rates beforehand. Insurance companies consider the make and model of a car when deciding on a premium. Vehicles are rated based on the cost, safety record and theft history. The higher the rating, the more you pay in insurance premiums.

Step 3

Notify the insurance company of your purchase before you drive the car off the lot. Some companies will cover your new vehicle under the current policy for up to 30 days, especially if you’ve traded in your old car. However, if you keep your old car, you might not be covered until you transfer the policy.

Step 4

Inquire about discounts for any safety features your new vehicle might have. Companies often give discounts on insurance rates for airbags, antilock brakes, daytime running lights and automatic seatbelts. If you have the dealership install additional safety features, be sure to tell your insurance agent as these may qualify you for further discounts.

Step 5

Raise the deductible on your car insurance to help bring the premium down. Another way to receive lower rates is to insure multiple cars with the same company. Selecting the same company to carry both your auto and homeowner insurance can save you money, too. Paying the annual premium in full up front when you buy the car will save you a few dollars as well.

Step 6

Keep your credit history clean. Having a high credit score can lower your auto insurance rates. When insurers calculate how much of a risk you pose, your credit score is usually a pretty fair indicator. Most insurers will pull your credit report and use the information to help determine your auto insurance rate.

Step 7

Drive safely. If you have tickets and accidents reported on your driving record, you are probably going to pay more for insurance. A bad driving record will increase your rate, whereas a safe driving record can contribute to a lower insurance premium. Keep this in mind when insuring a new car.

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