How to Get Insurance when Buying Your First car
First-time car buyers need to buy car insurance before driving their vehicle off the lot. Click here to learn how!
Written by Pat Roache
Reviewed by Amy Bobinger
First-time buyers typically need to buy car insurance before driving a new car off the dealership lot. You can get car insurance quotes with the make, model, and model year of your new vehicle, but you’ll eventually need the vehicle identification number (VIN) to purchase an auto insurance policy for your first car.
Buying your first car
can be daunting, from narrowing down the model that’s right for you to researching your car loan
options. Then, on top of all of that, you have to throw your first car insurance
policy into the mix?! It may seem like a pain, but this step is just as important as the other two in your car-buying process.Chances are, you’ll need to provide proof of insurance to successfully secure a lender and purchase your new vehicle—not to mention most states legally require it to drive your car. To make sure you’re checking off all the boxes, here’s an in-depth look at how to get car insurance when buying your first car.
How to buy car insurance for your first car
Buying car insurance for your first car is a pretty straightforward process—and the amount of work that you put into it is up to you!
Here are the basic steps you’ll follow when buying your first:
- Get together all your personal and vehicle information.
- Determine how much insurance coverage you want.
- Request car insurance quotes from an insurance agent or an online service.
- Pick the quote that works best for you and enroll in your new policy before you pick up your car.
Finding the right car insurance company for your first policy can take a bit of research—but just how much is up to you. Just keep in mind that the more work you put into comparing car insurance quotes, the more certain you can be that you’ve found the best rate. But before we talk about that, let’s review what you’ll need to request car insurance quotes.
You’ll need to provide the following basic personal and vehicle information when buying car insurance:
- Driver’s license number
- Date of birth
- Education and occupation
- Address
- Marital status
- Driving history
- Insurance history (if any)
- Vehicle information
Insurance companies use a lot of this information to
calculate your car insurance quotes
. You’ll typically need to provide your new car’s vehicle identification number (VIN) when you purchase insurance, but you can stick with the make, model, and model year of your intended car when you’re requesting quotes.RECOMMENDED
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What insurance coverage do you need?
Now here’s the tricky part: how much car insurance do you actually need when you’re buying your first car?
Almost every state has
minimum car insurance requirements
that you’ll need to meet before you can legally operate your motor vehicle. This typically includes minimum limits of some form of liability coverage
—but that doesn’t necessarily mean you should stop there..Finding the right coverage for your needs can be a bit of a balancing act, but it’s an important question to tackle as you build your first policy. Are you ok paying a little extra for some additional coverage that will protect you in accidents and other catastrophes, or would you rather take on some additional risk so you can pay the least amount possible?
Here are some types of insurance that all drivers should consider when
buying car insurance for a new car
.Liability coverage
Liability coverage is required for all drivers in 48 out of 50 states. It covers damages that you cause to others in a car accident.
There are two main types of liability insurance:
bodily injury liability
and property damage liability
—and they cover exactly what they say they do. Bodily injury liability pays for injuries that you cause to others and property damage pays for, well... property damage!Collision coverage
Collision insurance
is an additional type of coverage that covers your property damages in an accident that regular liability does not. This includes vehicle damage from a single-car rollover, an accident with another vehicle, collisions with stationary objects, and so on.Comprehensive coverage
Comprehensive coverage
fills in a lot of other car damages—specifically when it comes to catastrophes that are often outside of your control. The most common vehicle damages covered by comprehensive include car theft, vandalism, natural disasters, and wildlife.MORE: Collision vs. comprehensive car insurance
Other types of coverage
Combining collision and comprehensive insurance with state-mandated liability insurance is often referred to as a full-coverage insurance policy. This can offer the most protection and peace of mind for you and your new vehicle while also abiding by the law.
Some states also require
personal injury protection (PIP)
and uninsured motorist coverage
. Even if it’s not required, uninsured motorist coverage can be a great addition to protect yourself from underinsured drivers on the road.There are also a few
types of insurance
that can protect the value of your investment when you’re buying your first car, like GAP insurance, new car replacement insurance, and OEM coverage.MORE: Different types of car insurance: Which one suits you best?
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Car insurance rates for first-time drivers can be surprisingly expensive since you don’t have an established driving record to demonstrate low risk. The average 18-year-old driver pays around $3,500 per year on average for a policy that meets the bare minimum of state requirements.
Insurance providers typically consider new drivers as
high-risk drivers
, meaning they get some of the most expensive premiums in the market. This won’t always be the case if you’re buying your first car and insurance policy after you’ve been driving on your family’s dime for a few years, but there are a few other factors that can also up your first-time car insurance rates.The type of car you choose to drive will also play a significant role in determining your insurance rates. Used cars are typically cheaper to insure than new cars because they have less value, and a safer ride like the
Toyota Corolla
will almost always cost less to insure than a drag racer like the Dodge Challenger
.You’ll also see slightly higher insurance rates if you live in a major city or an area with a lot of uninsured drivers—simply because there’s more risk on the roads. Lower deductibles also tend to garner higher insurance rates simply because your provider would have to cover more costs.
Best insurance companies for new drivers
State Farm insurance quotes
tend to be 64% cheaper than the national average for new drivers with a good credit history. Nationwide
and Geico
are also great choices for young drivers thanks to their reputation for affordable coverage and available discount programs.MORE: How to get cheap car insurance for young drivers
How to find cheap first-time car insurance
Car insurance doesn’t have to be hopelessly expensive for new drivers—you often just need to put in a little extra work to find the lowest possible rate.
Compare car insurance quotes
Requesting and comparing
car insurance quotes online
before you’ve even bought your vehicle is a great way to narrow down your options to find the most affordable rate. You may even discover that you can afford more coverage than you previously thought—a win-win for everyone!Car insurance discount
Talk to an insurance agent about available car insurance discounts so you can make sure they’re applied to your premium. Common discounts for young drivers include good student discounts for full-time students who maintain a B average and safe driver discounts that track and reward good driving habits.
Bundle insurance products
Do you need to buy insurance for anything else? You can often save a pretty penny by bundling insurance products from the same company. For example, if you rent an apartment, see if you can bundle your car and
renters insurance
to score a deal!MORE: 10 ways to get cheap car insurance that’s actually good
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What should you bring when buying car insurance for the first time?
You’ll need to bring some basic personal and vehicle information when buying car insurance for the first time, including your driver’s license, your address where the car will be parked or garaged, your car’s VIN, and any previous driving or insurance history (if applicable).
Do you need to get insurance before or after buying your car?
You need to buy insurance before you drive your new car off the lot. Finish enrolling in your new policy as soon as you are committed to purchasing the car and know its VIN.
