To drive a new car legally, you need at least your state\u2019s minimum required auto insurance<\/a>, which will cover injuries and property damage you may cause. However, if you finance or lease a vehicle, you will likely need more coverage. Read on for details. <\/p>\n\n\n\n When you purchase a new car<\/a>, most states require you to have an auto insurance plan in place before you can drive it off the lot. But what does that mean, exactly? <\/p>\n\n\n\n This generally refers to liability insurance, which covers damages to other people or property if you are at fault in an accident. However, it is sometimes wise to increase the minimum to protect yourself financially in case of an accident, and according to the minimum insurance requirements in your state<\/a>. <\/p>\n\n\n\n If you lease a new vehicle or purchase one and have a loan, you will need to be sure your insurance extends to protect the vehicle in almost any situation, including weather, theft and accidents. <\/p>\n\n\n\n Buying a new car is exciting, but being adequately covered first is essential. Let\u2019s break down what insurance is recommended for a brand-new car. <\/p>\n\n\n\n Collision coverage<\/a> damages to your car in the event of a crash with another vehicle or object, regardless of who is at fault. If another driver causes the accident, their insurance will usually be used to cover your vehicle damage, however, if you cause the accident, your liability will not pay for your damages. If it is an accident where your vehicle is the only one involved, such as running off the road or hitting a stationary object like a tree, collision will pay for repairs, minus a deductible. If your car is totaled or stolen, this coverage pays up to actual value, which is usually determined using sources such as Kelley Blue Book<\/a> for example. <\/p>\n\n\n\n Comprehensive insurance<\/a> covers damages to your car caused by an incident that\u2019s not a collision, like vandalism or theft. For example, a sudden hailstorm happens when your vehicle is outside. Comprehensive is also what comes into play if you hit an animal and do major damage. This form of coverage also comes with a deductible and will pay up to actual cash value (ACV) if the car is totaled. ACV is usually determined with sources such as Kelley Blue Book. <\/p>\n\n\n\n Uninsured\/Underinsured Motorist Coverage<\/strong> <\/p>\n\n\n\n This covers damages that you may experience in an accident with another driver who does not carry car insurance or who does not have enough insurance to cover your damages. In many states, this coverage is required, but not all. It can be structured to help pay for both medical costs and property damage in some states. This coverage is also used when you are involved in an accident with a hit-and-run driver. <\/p>\n\n\n\n Gap insurance<\/a> helps cover the difference between what you owe on your car loan and the vehicle\u2019s actual cash value if it\u2019s totaled or stolen, preventing you from paying out of pocket on a loan balance. This type of coverage is mainly for brand new (or less than two years old) vehicles where the buyer used a minimum down payment. <\/p>\n\n\n\n New car replacement<\/a> is a feature in that will replace your new car if it\u2019s totaled in an accident or stolen within the first few years of ownership with a new vehicle of the same make and model \u2013 or as close as possible. <\/p>\n\n\n\n Rental car reimbursement<\/a> helps pay for a temporary rental vehicle while your car is being repaired after a covered claim, so you can stay on the road without extra expense. <\/p>\n\n\n\n You need enough insurance to pay for any damages you cause, as well as enough to pay to fix your own car in the event you cause an accident. If you finance your new vehicle, you will need to add collision and comprehensive to your baseline liability coverage. <\/p>\n\n\n\n When buying car insurance for a new car, it\u2019s important to consider a few key factors. One of the most important is the type of policy you want. There are several different varieties of car insurance policies, each with its own benefits and costs associated. <\/p>\n\n\n\n Another thing to consider is how much coverage you\u2019ll need based on the total value of your new vehicle. The more coverage you have, the more expensive your policy will be. <\/p>\n\n\n\n Comparing new car insurance quotes from different insurers will ensure you get the best rate possible. Another factor that can affect your monthly premiums is the deductible you choose. <\/p>\n\n\n\n If you opt for a higher deductible, you pay less for your monthly payments. But keep in mind that if you do get in an accident, you\u2019ll need to pay the deductible amount out of pocket to cover the costs of repairs before your insurance starts to pay. You may need to review your savings to determine which is best for your situation \u2013 a higher or lower deductible. By weighing the pros and cons, you can make the best decision for your budget. <\/p>\n\n\n\n When you\u2019re buying new car insurance, you\u2019ll need to provide some documents to the insurance company. These documents can include your driver\u2019s license and the information for your current car, including the make, model, and year. Be sure to have all of these documents ready when you start shopping for new car insurance. <\/p>\n\n\n\n Have your chosen insurer in place before you drive off the lot with your new vehicle. A simple call from the dealership once you\u2019ve settled on a new vehicle will be enough to get you the protection you need. Alternatively, some dealerships may offer to insure the vehicle: This typically costs more than purchasing a policy yourself. <\/p>\n\n\n\n Setting things up before you leave the lot will also give you the ability to compare different rates and coverage options for new cars, which may allow you to save money on the purchase price in the long run. If this sounds overwhelming or if you want help shopping around for new car insurance, let us know. Our agents will work with you to help you create a custom plan \u2014 one that has all the coverage you need without any unnecessary headaches or cost surprises later on. <\/p>\n\n\n\n Get a free, no-hassle quote from Acceptance Insurance<\/a> today before buying new car insurance so that there aren\u2019t any surprises when it comes time to pay your bill each month. Or you can just give us a call at 877-405-7102<\/a> or stop in a local office<\/a>. <\/p>\n\n\n\n It\u2019s common for people to have questions about purchasing insurance for a new car. The questions below will provide you with the most frequently asked questions. If you have further questions, reach out to one of our agents for answers. <\/p>\n\n\n\n The minimum amount of car insurance coverage you need depends on the state in which you live. In many states, the minimum amount of bodily injury liability coverage required<\/a> is $25,000 per person and $50,000 per accident. <\/p>\n\n\n\nMinimum Insurance Required by State<\/strong> <\/h2>\n\n\n\n
What Coverage Is Required if Your Car Is Financed or Leased?<\/strong> <\/h2>\n\n\n\n
Recommended Coverage for a Brand-New Car<\/strong> <\/h2>\n\n\n\n
Collision Insurance<\/strong> <\/h3>\n\n\n\n
Comprehensive Insurance<\/strong> <\/h3>\n\n\n\n
Gap Insurance<\/strong> <\/h3>\n\n\n\n
New Car Replacement Coverage<\/strong> <\/h3>\n\n\n\n
Rental Reimbursement Coverage<\/strong> <\/h3>\n\n\n\n
![\"Woman](\"https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/02\/Woman-shaking-hands-with-an-agent-in-an-office-representing-choosing-insurance-coverages-for-a-new-car.jpg\")
<\/figure>\n\n\n\nHow Much Insurance Do You Need for a New Car?<\/strong> <\/h2>\n\n\n\n
What Documents Do You Need to Buy Insurance for a New Car?<\/strong> <\/h2>\n\n\n\n
Get Coverage Before You Drive Off the Lot<\/strong> <\/h2>\n\n\n\n
FAQs About Insurance for a New Car<\/strong> <\/h2>\n\n\n\n
What Is the Minimum Amount of Car Insurance Coverage I Need?<\/strong> <\/h3>\n\n\n\n