Insuring Your New Car

Owning a new car can be exciting. Who doesn't love the new car smell, or the shiny exterior, or the feel of the seats in a new car? Before you drive away from the car dealership with that nice new car, you need to make sure that you get your car insured. Although some companies may automatically insure you if you already have a policy with them, some do not, and you may be in for a huge case of sticker shock if you purchase a car without setting up arrangements for insurance. Take care of the insurance details before you sign for the car.

New Car, New Rate

New cars come with new car insurance rates. If you were driving a much older vehicle, insurance might cause a big change to your auto insurance rates. Your new car might be a bigger temptation to thieves than your old car, which will affect your rates. If you are financing your new car, your lender will probably require you to purchase comprehensive and collision insurance, which can also cause your rates to jump, especially if you only had liability on your last car. It's a good idea to find out how much your new car will cost to insure before you sign the paperwork at the dealership.

Driving Away without Insurance

If you drive off the lot without notifying your insurance company of your new car purchase, you may still be covered. If you traded in your old vehicle, many companies will cover your new vehicle for 14 to 30 days after you make the purchase, and some state laws require a longer period of time. If you are keeping your old car, or are purchasing this car for business purposes, you may not be covered at all. If this is your first car purchase, you will not be covered either. Because insurers vary in their insurance transfer policies, it is important to call your insurance company as soon as possible after making the car purchase.

Saving on Your New Insurance

Although your new car will probably cost more to insure than your old car, you may be able to get car insurance discounts if your new car has certain safety features. Many insurance companies give discounts for electronic stability control, automatic seatbelts, airbags, or antilock brakes. If your car is equipped with OnStar, a backup camera, or daytime running lights, you might be able to get even more discounts. Your insurance company might know of some of your car's safety features because of the VIN number, but if you have any additional safety features installed at the dealership, you will want to notify your insurance company, or they won't know to give you the discount. There are other things to do to save on insurance for all of your cars. If you raise your car insurance deductible, your insurance costs will go down. Your credit score not only affects the interest rate on the loan for your new car, but it can also affect your car insurance rates, so make sure that your credit report is accurate, and try to keep your credit in decent shape. You may be able to get discounts on your car insurance if you insure multiple cars with the same company, or if the same company carries your car and homeowner's insurance coverage. If you will not be driving your car very often, you may be able to qualify for a low-mileage discount. Most important of all, drive safely. Drivers with tickets and accidents on their records generally pay more for insurance. After reading all of this information you can begin your search by getting yourself a free auto insurance quote.