Should I get car insurance quotes before buying a car?

If you already know the make and model of car you are purchasing, it is easy to ask for quotes online from most major insurers, so you can get a sense of what you will be paying for coverage. But you will not be able to get an exact quote until you know the car’s VIN and other information specific to the exact vehicle you are purchasing. Most insurers provide coverage for new vehicles on your existing policy for a 30-day grace period. However, if you do not have an existing policy, you will need to get quotes and finalize your policy before you drive off the lot. Even if you have an existing policy, it can be helpful to compare quotes before you buy a car to get a sense of what it will cost to insure your new vehicle.

What is the best car insurance company?

No single car insurance company is the best choice for every driver, all the time. Finding the best company for your needs generally starts by considering your personal priorities. You may be looking for the cheapest coverage possible, for example. Or perhaps another factor, such as superior customer service or the availability of an extensive list of discounts, is more important to you. Once you have identified some companies that could be good choices, ask for quotes from several of them so you are able to find the one that offers the most affordable policy for the coverage you need.

How much does car insurance cost?

The average cost of car insurance in the U.S. is $2,273 per year for full coverage as of July 2024, which includes optional collision and comprehensive insurance. The average annual cost of minimum coverage is $621. Note, however, that your own rate is likely to differ from the averages. Insurance rates are highly personalized and are calculated based on a range of factors that may include your age, driving history and location as well as your vehicle’s age, make and model.

How much car insurance do I need?

In almost every state in the U.S., you are required by law to carry a minimum amount of liability coverage in order to be on the road. In many regions, the legal limits for your liability coverage are low, and many insurance experts recommend purchasing higher levels than are required by law in order to have the most robust financial protection. In some states, you may need additional coverage on top of liability insurance. A few states, for example, require you to have uninsured/underinsured motorist coverage. In addition, states that are considered no-fault states will typically require you to carry personal injury protection (PIP) insurance. If you lease or finance your vehicle, it is likely that your lender will also require you to purchase collision and comprehensive coverage, which can help pay for damage to your car after an at-fault accident or other incident.

What if you don’t get full coverage on a leased or financed car?

If you don’t get full coverage on a financed or leased car, your lender will probably issue you force-placed insurance. Force-placed insurance protects the lender’s interests, but may offer inadequate protection for the buyer in terms of comprehensive and collision coverage. Additionally, force-placed insurance is usually more expensive than a policy you would purchase on your own. If you are leasing, it may also include liability limits of 100/300/50 in addition to full coverage. You can avoid the extra expense of force-placed insurance by obtaining multiple quotes and securing coverage before buying your car.

Do you need insurance to buy a car?

Written by

Elizabeth Rivelli,

Edited by

Amelia Buckley,

Reviewed by

Mark Friedlander,

Expert verified

Published on September 26, 2024 | 4 min read

Bankrate is always editorially independent. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our . Our is to ensure everything we publish is objective, accurate and trustworthy.

Peter Cade/Getty Images

chinese female executive in car showroom

One of the tasks you will need to tackle when you purchase a new car is buying car insurance. Whether you buy from a dealership or a private seller, most states require you to have car insurance to get behind the wheel of your new ride. Fortunately, there are a few ways you can go about securing coverage.

Do you have to have insurance to buy a car?

Once you have a new vehicle, you will need a policy to drive legally in most places in the U.S. — even just to drive the car home. However, you do not necessarily need to have an active car insurance policy before you purchase a car. In fact, it would be difficult to purchase insurance until you know exactly which car you are going to buy. When you apply for car insurance, the insurer will need vehicle-specific information like the VIN and mileage.

Although buying a car without insurance is technically possible, you will need to show proof of insurance before you can legally drive the vehicle off the lot. If you purchase a car at a dealership, the salesperson will probably ask to see proof of insurance on the vehicle during the transaction. Without an active policy, you would not be legally allowed to take possession of the car, even if you pay cash.

Advertising disclosure

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Insurance disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Compare auto insurance rates

Answer a few questions to see personalized rates from top carriers.

Are you currently insured?

Are you insuring multiple vehicles?

Are you a homeowner?

ZIP Code

Your information is kept secure

Advertising disclosure

Insurance disclosure

Advertising disclosure

Insurance disclosure

Compare auto insurance rates

Answer a few questions to see personalized rates from top carriers.

Are you currently insured?

Are you insuring multiple vehicles?

Are you a homeowner?

ZIP Code

Your information is kept secure

Advertising disclosure

Insurance disclosure

Do I need a new policy for my new car?

You do not necessarily need a new policy in order to purchase a new car. If you already have car insurance, you can probably add the new vehicle to your existing policy. This can be done through contacting your insurance agent or company representative, or through your insurance company’s mobile app or the online customer portal, which you can do while you are waiting at the dealership.

In addition, your existing policy might offer a grace period, which will automatically cover a new car for a limited period of time before you have to officially add it to the policy. Car insurance grace periods are typically up to 30 days, but before you visit the dealership, make sure to confirm how long you have to complete this process with an agent so you know how long the car is covered.

It is important to note that if you rely on a grace period to cover your new vehicle, only your current coverage is extended, which can be problematic. For instance, if you replace an older vehicle that is only covered for liability, your new car would also carry liability-only coverage until it’s officially added to your policy. That means the damage to your new vehicle would not be covered if you get into an at-fault accident within the grace period. For this reason, many insurance professionals recommend that you avoid relying on grace periods to protect your new car and instead suggest adding the vehicle before driving it. Additionally, you should make adjustments to your coverage levels as necessary.

If you do not already have car insurance, you will need to purchase a new policy. Most car insurance companies make it easy to apply for coverage and purchase a new policy online or through a mobile app.

How do I get insurance for my new car?

Obtaining insurance for a new vehicle is relatively easy, especially if you take a few moments to gather some information before making your policy request. To add coverage to your new car, you should:

Gather the vehicle’s information. To obtain a new policy or add a car to your existing policy, your agent will ask for your VIN, vehicle usage information, registered owner’s information, lienholder or leasing company and current odometer reading.
Request the correct effective date. To legally drive your vehicle off the lot, your dealer will require that your coverage start the day you purchase the car. Some companies will automatically give you same-day coverage, while others show a default effective date for the day after your request. It can be helpful to specify what date you need your new coverage to start to avoid an unnecessary callback to your insurance company.
Ask for an ID card and binder. You almost always need to provide proof of insurance to the dealer, usually in the form of a binder. Most car insurance companies or your agent can provide these documents in only a few minutes by emailing them.

You may find it helpful to secure coverage for your new vehicle before heading to the dealership or private seller to pick it up. Buying a new vehicle can be an all-day event, but getting your new car covered ahead of time can make the process smoother. If the deal falls through, you should only need to contact your car insurance company and request that they reverse the changes.

What if I am not buying from a dealer?

Private car sales are becoming increasingly popular, as they often allow drivers to find much better prices than a dealership might offer and could have quicker transactions. If you decide to buy a vehicle from a private seller, you will still need car insurance. The only difference is that the seller is not obligated to verify your coverage before you are allowed to drive off.

Your current car insurance policy will most likely extend coverage through the grace period, even with a private sale vehicle. But if you do not already have coverage, you will need to purchase a policy before you can drive the vehicle home.

Although the seller may not ask to see proof of coverage, driving without insurance still has legal and financial ramifications. You could get pulled over while driving home, which could lead to a number of serious consequences if you do not have proper coverage.

Frequently asked questions

If you already know the make and model of car you are purchasing, it is easy to ask for quotes online from most major insurers, so you can get a sense of what you will be paying for coverage. But you will not be able to get an exact quote until you know the car’s VIN and other information specific to the exact vehicle you are purchasing. Most insurers provide coverage for new vehicles on your existing policy for a 30-day grace period. However, if you do not have an existing policy, you will need to get quotes and finalize your policy before you drive off the lot. Even if you have an existing policy, it can be helpful to compare quotes before you buy a car to get a sense of what it will cost to insure your new vehicle.
No single car insurance company is the best choice for every driver, all the time. Finding the best company for your needs generally starts by considering your personal priorities. You may be looking for the cheapest coverage possible, for example. Or perhaps another factor, such as superior customer service or the availability of an extensive list of discounts, is more important to you. Once you have identified some companies that could be good choices, ask for quotes from several of them so you are able to find the one that offers the most affordable policy for the coverage you need.
The average cost of car insurance in the U.S. is $2,273 per year for full coverage as of July 2024, which includes optional collision and comprehensive insurance. The average annual cost of minimum coverage is $621. Note, however, that your own rate is likely to differ from the averages. Insurance rates are highly personalized and are calculated based on a range of factors that may include your age, driving history and location as well as your vehicle’s age, make and model.
In almost every state in the U.S., you are required by law to carry a minimum amount of liability coverage in order to be on the road. In many regions, the legal limits for your liability coverage are low, and many insurance experts recommend purchasing higher levels than are required by law in order to have the most robust financial protection. In some states, you may need additional coverage on top of liability insurance. A few states, for example, require you to have uninsured/underinsured motorist coverage. In addition, states that are considered no-fault states will typically require you to carry personal injury protection (PIP) insurance. If you lease or finance your vehicle, it is likely that your lender will also require you to purchase collision and comprehensive coverage, which can help pay for damage to your car after an at-fault accident or other incident.
If you don’t get full coverage on a financed or leased car, your lender will probably issue you force-placed insurance. Force-placed insurance protects the lender’s interests, but may offer inadequate protection for the buyer in terms of comprehensive and collision coverage. Additionally, force-placed insurance is usually more expensive than a policy you would purchase on your own. If you are leasing, it may also include liability limits of 100/300/50 in addition to full coverage. You can avoid the extra expense of force-placed insurance by obtaining multiple quotes and securing coverage before buying your car.