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For the most part, getting new car insurance is pretty similar to buying coverage for any other vehicle. There are some particulars, however, and you may have different needs when it comes to insuring a new car than if you were protecting a used one.

We at the Home Media reviews team took an in-depth look at how to get auto insurance for a new car, from the essential types of coverage to how much it might cost you. Our team also listed a few recommended providers from our 2022 list of the best car insurance companies.

The short answer is that auto insurance on a new vehicle works pretty much the same as it does on any car. What’s unique to new car insurance is the fact that you can — and often, must — purchase it before you actually own the car. That’s because most dealers and dealerships require proof of insurance to transfer ownership of the vehicle to you.

If you buy insurance before taking ownership of a new car, the policy will begin the moment you drive your vehicle off the lot. This is often required by dealerships because it’s illegal for anyone to drive without auto insurance.

You’ll need the following information on hand to start a new car insurance policy before buying the vehicle:

Most car insurance providers will be able to start your policy within 24 hours. You can even find same-day insurance from many auto insurance companies.

While it’s true that you cannot legally drive without auto insurance, some companies do offer a grace period. This is a period of time in which you’re allowed to drive your vehicle without starting a new insurance policy. Typically, this grace period lasts between seven and 30 days from the date of purchase.

Whether or not you have a grace period depends on a few factors, including:

Since grace periods vary from company to company, it’s always good to figure out exactly what your policy will allow for. You can find this information in the fine print of your contract, but it may be easier to ask an insurance agent.

Technically speaking, whether a car is new or used doesn’t factor into your premiums. However, you’ll see rates go up for a new car if it’s more expensive overall than your previous car.

According to our research, the national average cost of full coverage car insurance is $1,730 per year. Your premium, however, is likely to vary based on personal and car-specific factors.

The value of your vehicle is just one of many factors that insurers use to determine premiums. When you insure any vehicle, new or used, these are the most impactful factors:

For the most part, you don’t need different types of insurance on a new car than you do for any other vehicle. The kinds and amounts of coverage you need depend on other factors, such as where you live and whether or not your lender has extra requirements if you take out a new car loan.

Each state has its own minimum insurance requirements. Usually established by the state’s department of motor vehicles (DMV) or a similar agency, these standards often vary widely.

You can find your state’s requirements along with more information and our recommendations for providers with cheap rates by clicking your state on the map below:

Auto Insurance Rates by State

Click a state to learn more about the cheapest providers in that state.

State minimum requirements are almost always made up of some variation of the auto insurance coverage options listed below.

Some lenders require borrowers to carry new car insurance add-ons that cover damages to the vehicle in every circumstance. This is meant to protect the lender’s financial interest. That’s why you may be required to carry additional coverage options like these if you take out a loan to buy a new car:

While standard options are mostly the same from one provider to the next, many insurance companies differentiate themselves through additional choices. Many of these add-ons help to manage other aspects of new car ownership, such as breakdowns and emergencies.

Some of the most common optional coverages you’ll find are:

Most auto insurers offer unique lineups of optional new car insurance coverages. You can learn about all available options as well as what each plan covers by speaking with an agent.

Buying a new car insurance policy is mostly the same as getting insurance for any other car. With most insurers, you should be able to find coverage, purchase it and start your policy while you wait at the dealership.

The process for picking up coverage is relatively simple. You’ll just need to follow these steps:

It’s a good idea to get auto insurance for a new car before you buy it, and in many cases you’ll be required to. Thankfully, you have the ability to get car insurance quotes almost instantly online or over the phone with policies that can start almost right away.

It’s so easy to shop around for car insurance that you can probably do it while you wait for the financing department or another delay that’s involved in buying a car. Our team recommends State Farm and Travelers as good places to start your search.

State Farm is the nation’s largest insurer and it earned the highest score of all providers in our 2022 insurance study. Drivers can often find inexpensive new car insurance through State Farm, and the company also offers an extensive selection of additional coverage options. With a large number of insurance discounts to choose from, State Farm policyholders can get the coverage they want at affordable rates.

Keep reading: State Farm insurance review

People looking to cover as many parts of their new cars or motorcycles as possible may want to look at Travelers. In our 2022 insurance study, we found that the company has an ample coverage portfolio, with many of Travelers’ choices appealing to owners of new vehicles. For example, Premier New Car Replacement Ⓡ will cover the cost of a brand-new replacement of the same make and model in the event of a total loss.

Keep reading: Travelers insurance review

A new car is usually more expensive to insure than the one it replaces, but that’s not just because you’re the car’s first owner. New vehicles are typically more expensive to insure because they’re worth more and the value of a car is a major factor in the cost of auto insurance.

Legally, you only need to carry your state’s minimum required insurance for a new car. However, if you took out a loan to buy your new vehicle, your lender may require you to carry additional types of insurance.

How long you have to add a new car insurance policy depends on your specific insurer. Some  companies offer a grace period, which is usually somewhere between seven and 30 days. However, this mainly applies if you had a policy on your previous vehicle that’s still active. Legally, you’ll need to have car insurance any time you take your new car out on the road.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

In this article, we selected companies with high overall ratings and cost ratings. The cost ratings were informed by auto insurance rate estimates generated by Quadrant Information Services and discount opportunities.

*Data accurate at time of publication.

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