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New car insurance
Your current insurance policy covers you the second you drive your new car off the lot. You’re insured the exact same way as if you were driving your old car. BUT…you need to double check to make sure you have the right coverages!
Make sure you have the right coverages
If you’re getting ready to buy a new car, make sure you have comprehensive and collision. These are both optional coverages that pay for physical damage to your car. Typically, drivers leave these off for older cars. If you don’t have them now, your new car won’t. That means if it’s damaged, you’ll have to pay the full cost of your repairs.
Also, you’ll want to add your new vehicle to your policy as soon as you can.
How to add a new car to your policy
If you’re currently insured with another insurance company you can simply start a new policy with your new car. Get a car insurance quote online or call us at 866-731-8075.
You won’t need to start a new policy. You can add your new car or coverages to your existing policy, even while you’re at the dealership, by logging into your policy or calling 866-731-8075.
How much is insurance for a new car?
Usually getting a new car will increase your rate because it will be worth more than your old car. The exact increase will vary greatly based on the year, make, and model of your vehicle, as well as your location, driving record, previous insurance, and credit history. But, you may be eligible for more discounts, such as new safety features. Discounts can be different in every state. Just get a quote online or call, and we’ll show you which discounts you qualify for.
Usually getting a new car will increase your rate because it will be worth more than your old car.
New car insurance requirements
Comprehensive and collision coverage are usually required by the financer. Also, your state will require a minimum liability amount to pay for any damages you cause if you’re at fault in an accident.
Comprehensive and collision coverage are usually required by the leasing company, and it may set a maximum deductible $1,000 for each is common. You’ll likely also need a higher liability amount, typically at $100,000 per person and $300,000 per accident. You may also want loan/lease payoff coverage, also known as gap insurance.
Owned vehicle (no lender/lienholder)
You only need what your state requires. But it’s highly recommended that you add comprehensive and collision (physical damage coverage for your car). If you don’t add these and you total your new car, you’ll get $0 from your insurer. No fun.
New car insurance grace period
Insurers will typically allow you to have a grace period to add your new car to your existing policy. Progressive allows 30 days. That means if you have a claim within that period, your new car is still covered the same way your previous vehicle was.
That’s why it’s important to double check to make sure you have comprehensive and collision. If your policy doesn’t have these coverages (meaning it only has liability), then any physical damage to your new vehicle will not be covered until you officially add the vehicle, along with physical damage coverage. And even if you currently have physical damage coverage, it will be removed after that grace period unless you add the vehicle. For your convenience, we’re available 24/7 to immediately add coverages to your new car.
Unfortunately, we cannot backdate insurance under any circumstance.
At Progressive, you have a 30-day grace period to add your new car to your policy.
Average car insurance price
Does full coverage exist?
FAQs for new or newly purchased vehicles
Should I get an insurance quote on a new car before I buy it?
Absolutely. You’ll want to know how your new purchase will affect your insurance rate in advance. Even if you don’t have a policy with us, you can get a quote online or call 866-731-8075. We’re happy to provide a free quote on whatever car you have your eye on.
Can you send immediate proof to the dealership?
Yes! We’re here 24/7, and can send proof of insurance to the dealership so you can drive off the lot in your new car! This is important because most dealerships won’t let you drive away without proof of insurance (many times your current insurance will be good enough).
What if I don’t have my lienholder information?
Ask your salesperson at the dealership. They will almost always have the information you’ll need. If not, no worries—we won’t need it to start coverage on the spot. But, you’ll need to provide the lienholder’s name and address within 2-3 days of purchasing the policy or adding the new car to your existing one.
Am I covered by dealer insurance?
No. Dealer insurance will normally cover test drives, but it will not protect you once you buy the car.
Do you offer new car replacement if I total my car right away?
Under your collision coverage, you will be covered for the fair market value of the vehicle. If you owe more than the vehicle is worth, you may want to purchase gap insurance (also called loan/lease payoff coverage) which will help pay the difference between the car’s worth and what you owe on your loan.
Gap insurance can be very affordable. See more on how gap insurance works and how much it costs.
Yes deer, we can cover that
Should I add my teen driver to my policy?
Love, marriage, and insurance
Please note: The above content is meant as general information to help you understand the different aspects of insurance. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features on this page are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by state, and are not available in all states. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for, nor do we endorse or approve, the content of any third party sites linked from this page. Access to such sites is being provided for informational purposes only.
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