Getting the Best Insurance on New Cars

AAA Members can take advantage of great coverage and great savings.

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You just purchased your shiny new vehicle—now what? Before you step out of the dealership, you’ll likely need to have the proper auto insurance in place.

Read on for a comprehensive overview of insurance costs, how to obtain auto coverage and ways AAA can help you save on your new car insurance policy.

Is insurance on new cars more expensive than it would be for preowned cars?

Acquiring insurance for a new vehicle is crucial and often required before you can even drive off the lot. However, there are instances when a dealership provides a grace period (often seven to 30 days from date of auto purchase) during which you can obtain insurance coverage after the purchase. Factors affecting this grace period include:

  • Insured status: Some policies allow continuation from prior coverage.
  • Insurance company policies: Grace periods vary among insurers; understanding the specifics of your policy is essential.
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Auto insurance for a new vehicle is typically more expensive when compared to that of a used vehicle. This is largely because most new cars feature advanced technology, safety systems and newer parts, all of which can increase the cost of repairs.

Additionally, the greater the value of your vehicle, the greater the insurance premium will be to ensure adequate coverage.

What’s the average cost of car insurance on new cars?

The rate you’ll pay for auto insurance on a new vehicle is calculated based on multiple factors. Beyond the year, make and model of the vehicle itself, individual insurance rates are based on the driver’s:

What’s the Best Way to Get Insurance on New Cars?

Securing a favorable auto insurance rate for your new car involves a combination of proactive measures and informed decision-making. Here are 10 effective tips to help you obtain the best insurance rate.

1. Shop Around

Don’t settle on the first quote you get. Shop around and obtain quotes from multiple insurance companies. Different insurers may offer varying rates based on their underwriting criteria.

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2. Compare Rates

Make sure you understand the coverage options and compare benefits and rates from different companies. Ensure that the level of coverage, the deductibles and any additional features offered by each policy are the same. Not every auto insurance policy is written the same, so make sure you’re comparing apples to apples and ensure there are no gaps in coverage. Also, review the auto declaration page of your policy to make sure everything you need is included.

3. Increase Your Deductible

Consider increasing your deductible, which is the amount you pay out of pocket before insurance kicks in. Higher deductibles often result in lower premiums, but make sure that the deductible is an amount you can comfortably afford.

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4. Know the Minimum Requirements

Be aware of the minimum auto insurance coverage requirements in your state. Some states only require liability coverage, while others may require comprehensive coverage. Meeting these requirements is essential to being compliant with state laws.

5. Bundle Policies

Most insurance companies offer more than just auto insurance. Consider bundling your auto insurance with other policies, such as home insurance or renters insurance to take advantage of great savings. AAA Members can save up to 20% when they bundle policies.

6. Build Your Credit

Maintaining good credit is always important and is even more so when you’re looking for good deals on car insurance. Insurers often use credit score as a factor in determining rates. Better credit often leads to lower rates.

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7. Maintain a Clean Driving Record

Safe driving habits contribute significantly to lower insurance costs. Avoiding speeding, traffic violations and crashes often shows an insurance provider that you’re a good driver, which can lead to less-expensive premiums.

8. Ask About Discounts

Make sure to inquire about available discounts. Common discounts include safe driver discounts, good student discounts, multicar discounts and discounts for safety features on your new vehicle.

9. Prove You Drive Safely

Many insurance providers offer a device or a smartphone app that’s designed to capture critical data to determine how safe you are behind the wheel. (For AAA Members in select states, AAA’s downloadable tool, which is available in the AAA Mobile App, is AAADrive.) The device or app will measure variables like speed and braking. Drivers who demonstrate good habits can often take advantage of insurance discounts.

10. Review and Update Regularly

Periodically review your policy and update it as needed. Life changes, such as getting married or moving, can impact your rates. AAA insurance agents are happy to provide a courtesy review of your policy to help you make the best choices.

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Find the Best Insurance on New Cars with AAA

Getting a new vehicle is exciting, and making sure it’s insured correctly is important. AAA has been helping people protect their vehicles for more than 115 years, so we’re experts at giving members the coverage they need.

From day one of your auto coverage to every annual policy renewal to filing a claim, AAA handles it all. Let your membership work for you to secure the right coverage, best rates and peace of mind.

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