{"id":2219,"date":"2019-05-03T22:03:41","date_gmt":"2019-05-03T22:03:41","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=2219"},"modified":"2023-09-22T14:47:37","modified_gmt":"2023-09-22T14:47:37","slug":"new-car-insurance","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/new-car-insurance\/","title":{"rendered":"New Car Insurance: How to Insure a New Car"},"content":{"rendered":"\n
Updated 09\/13\/2022<\/em><\/p>\n\n\n\n When you buy a new car, there are many factors to consider\u2014like add-ons and upgrades\u2014but nothing is more important than learning how to insure a new car. The new auto insurance<\/a> grace period or temporary coverage differs per carrier, but it ranges between 0 to 30 days. If you must make a claim within this period, your carrier can cover your new ride with your previous plan. However, it\u2019s best to get your new ride insured as soon as possible.<\/p>\n\n\n\n Buying a new set of wheels involves a lot of choices that come at you suddenly. Do you want leather seats, front- or four-wheel drive, or an add-on package that includes the latest technology? In all of the excitement of your new purchase, you may forget to think of one very important thing \u2014 your auto insurance<\/a>. However, if you drive off the dealership lot without proof of insurance, the clock is ticking. If you forget, then you can end up driving while uninsured.<\/p>\n\n\n\n The short answer is yes. But when buying an auto policy for your recent purchase, new car<\/a> insurance grace period timelines can differ. Though your existing car insurance policy will protect your new auto for a short while, it may not be a good fit. Most insurers have a grace period owners rely on to have enough time to set up a new policy. Dealerships also offer some temporary coverage. During this time, you can add your new car to your existing policy or get a new plan from a different carrier. Any claim within the grace period will cover you with the same limits.<\/p>\n\n\n\n Unfortunately, this is not always the best way because it is recommended or required to add certain coverages for a new vehicle. It is smart to connect with your auto insurance agent or insurance company as soon as possible to be confident you are fully protected and have proof of insurance. For instance, your new vehicle may have an anti-theft device that can offer you some discounts. Or, you may want to add roadside assistance<\/a> or higher liability coverage in case your higher-valued ride is damaged.<\/p>\n\n\n\n Yes. It will depend on whether you financed, leased, or owned and what states are involved. Each type of use involves different levels of risk to the carrier, so costs may be higher for different coverage options.<\/p>\n\n\n\n If you financed, your lender or dealership will typically require you to have full coverage car insurance – collision coverage and comprehensive coverage on your policy. Collision insurance will help cover damage resulting from an accident with another vehicle or object, such as a house or a sign. Comprehensive will cover damage that did not occur from a fender-bender, but damage caused by natural disasters, fire, theft, etc. Financers also typically require a specific amount of minimum liability insurance coverage, which would help to pay for medical bills to another individual or their property damage from an accident you caused.<\/p>\n\n\n\n In addition to the full coverage car insurance requirements to carry collision insurance and comprehensive coverage and minimum liability insurance limits, lessees may also be required to obtain gap insurance coverage. Gap helps cover the \u201cgap\u201d between the value of a vehicle in the event of an accident and the amount owed.<\/p>\n\n\n\n Auto insurance brokers typically determine how much they will pay out for a covered claim based on value at the time of the accident. This can be an issue for new cars because they begin to depreciate as soon as they are driven off the lot. In fact, according to the Insurance Information Institute<\/a>, a vehicle can depreciate as much as 20% in its first year.<\/p>\n\n\n\n Imagine that you leased a $25,000 vehicle, and after a year, it was valued at $20,000, but you still owed $23,000 \u2014 gap would not only cover the current value, but the $2,000 gap that you still owe the lienholder.<\/p>\n\n\n\n In the case that you own outright without a lien or a loan, you would only be required to carry your state\u2019s liability insurance minimum limits; however, you may want to consider increased coverage limits to protect your new investment. To find out your state\u2019s minimum requirements, contact your local DMV. However, it may be a good idea to have more protection than just the minimum if you don\u2019t want to pay for a large part of incidental repairs.<\/p>\n\n\n\n Even if your lender or state doesn\u2019t require it, you should seriously consider uninsured motorist coverage. Uninsured motorist coverage is typically cheap and protects you against injuries and damage from an uninsured driver or someone who isn\u2019t carrying enough insurance. Uninsured motorist coverage can make a big difference.<\/p>\n\n\n\nWill My Current Auto Policy Protect My New Ride?<\/strong><\/h2>\n\n\n\n
Do I Need Specific Coverage for My New Car?<\/strong><\/h2>\n\n\n\n
Financed Vehicles<\/strong><\/h3>\n\n\n\n
Leased Vehicles<\/strong><\/h3>\n\n\n\n
Owned Vehicles<\/strong><\/h3>\n\n\n\n