Insurance When Buying a New Car: What to Know – Your AAA Network

Buying a new car is an exciting and undoubtedly unique process, especially in today’s world where that process is progressively changing. But whether you choose to buy your car online or from a traditional dealership, buy a used vehicle, or decide to lease, there is one constant: You’ll need good auto insurance coverage.

jodi desantis, general manager of insurance sales at northeastern aaa, and some of her agents help answer important insurance questions you may have when shopping for a new car. So when she finds a great deal on a car she loves, she can walk away with peace of mind.

Reading: Insurance coverage when buying a new car

Get a quote or talk to an agent about buying auto insurance through aaa.

Is there a difference between buying insurance for a new car and a used one?

Lenders may require specific coverages that could increase the cost of insurance. For example, auto loan companies require a vehicle to have collision and comprehensive coverage.

find out about financing your car through aaa.

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Depending on your budget, buying used gives you some flexibility around coverage, allowing you a little more control over your premium versus buying new. This decision becomes especially important if you have a teen driver on your policy who can increase your insurance costs. teens are statistically the riskiest drivers on the road.

How about renting a car?

When leasing a vehicle, be sure to consider loan/lease, also known as guaranteed asset protection or gap coverage, as this provides an additional cushion in the event the vehicle suffers a total loss. This coverage would pay the difference between the actual cash value of your vehicle and the unpaid balance of your loan or lease in a covered total loss scenario.

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Please note that leased vehicles are owned by the leasing company and they will want certain needs for insurance coverage met, such as requiring a higher limit of liability coverage.

how can you prepare for the dealership?

When buying a vehicle from a dealer, make sure you’ve talked to your insurance company to let them know you may be buying a new car soon, or have your agent’s phone number handy.

Once you’ve chosen a vehicle, the next step is to add that vehicle to your insurance policy so the finance company has the information they need to complete the loan.

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Having your insurance information on hand at the dealership will make the transaction much smoother as you complete your new vehicle purchase.

Learn how much you can save when you buy a new or used car through the AAA Car Buying Program.

do you need to update your insurance before you can leave the parking lot?

yes! this must be done before leaving with your new vehicle. You may also consider getting a rough quote from your agent before making your purchase decision. this will allow you to balance your budget accordingly if your insurance premiums increase due to this purchase.

Is the insurance rate higher for a new car?

not necessarily. there are so many different factors that are taken into account when rating a vehicle. MSRP and safety features like airbags, anti-lock brakes, and lane departure warnings are just a few examples of how your insurance rate is affected. other factors, such as the city in which the vehicle will be stored, driving history, and annual mileage, can also affect the premium.

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Is there an insurance discount your agent can help with?

absolutely. always ask your agent if there are any discounts available to you that you are not currently taking advantage of. This could include discounts on payment plans, such as paying in full or switching to automatic monthly deductions. Other savings could come from combining your auto and home insurance and going paperless. Depending on the state you live in and your insurance company, there are also discounts that may be specific to you, such as being a veteran or an AAA member. In some states, completing a defensive driving course may also help lower your insurance rate.

For more information on how to get new car insurance, make an appointment with an aaa insurance agent, or get a quote, visit

See also: What does life insurance cover? | Bankrate

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