Your insurance checklist after buying a car
A new or used vehicle purchase requires immediate insurance decisions. Here is what to know.
What changes with your insurance
Buying a car requires immediate insurance action. If the car is financed or leased, your lender or leasing company requires full coverage (liability + collision + comprehensive) before you can drive it off the lot. If you paid cash, you can technically carry just liability, though full coverage is usually worth it for newer vehicles. Adding a new vehicle to an existing policy is typically done with a quick phone call or app update. Gap insurance is worth considering if you are financing a new car that will depreciate faster than your loan balance.
What you might be overpaying for
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Not shopping at renewal
Adding a new car is a natural time to get competing quotes. Most drivers can save $200-$500 by switching insurers at this point.
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Full coverage on a low-value used car
If the car is worth under $6,000, full coverage is often not cost-effective. Use the break-even calculator to decide.
Frequently asked questions
Frequently asked questions
This is an estimate for informational purposes only based on national and state averages. Actual rates vary by insurer and individual circumstances. For an accurate quote, contact a licensed insurance agent.
Relevant calculators
Full Coverage vs Liability
Determine if full coverage is worth it based on your vehicle value.
Use calculator →Gap Insurance Calculator
Find out if gap insurance makes sense for your vehicle and loan.
Use calculator →