Use the make and model of your new vehicle to shop around for car insurance quotes before buying a car, then use the VIN to finalize your coverage and rate.

Written by Jessica Barrett

Edited by Georgina Grant

Reviewed by Josh Damico

Updated on Jan 31, 2024

If you’re ready to buy a new car, you’ll need to get a

car insurance

policy before you drive off the lot. Use the vehicle make and model to estimate your car insurance quotes—and once you’ve settled on a specific vehicle, use the VIN to finalize your new policy.

You need an active car insurance policy to take your new car home

If you don’t have a policy for an existing or prior vehicle, you’ll need to get insurance coverage in place before you sign on the dotted line—otherwise, you won’t be allowed to drive your new ride home.

Car dealerships require proof of insurance

to finalize a new or used car purchase. If you’re financing your car, your lender will require you to purchase

full-coverage insurance

Many car owners come to Jerry to find affordable same-day policies without any hassles. You’ll get proof of insurance right away so that you can enjoy your new ride. But if you’re shopping in advance, you can also schedule your policy start date to align with your purchase.

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How to get car insurance when you’re buying a car

Getting the coverage you need as a first-time car owner is fairly straightforward. It’s also quick! Most insurance companies will give you

same-day coverage

that activates once your payment is processed.

Remember: When you shop for quotes, confirm with an agent whether or not the coverage is immediate. Remember, you can’t drive your new car home without active coverage.

Step 1: Shop around to compare car insurance quotes

Auto insurance companies use different calculations to set your rate, so each provider may offer you different types of insurance and

car insurance discounts

You can use a licensed insurance agency like

Jerry

to help you narrow down a few of the best quotes from the country’s top insurance companies and easily compare your options.

Simply answer a few questions about you, your insurance and driving history, and your vehicle, and Jerry will instantly browse rates from more than 55 insurers to find you the most affordable coverage options.

What you should expect to pay: Auto insurance rates for a new car with comprehensive and collision insurance are about $1,712 per year on average. The average rate is typically a little lower for used vehicles.

Various rating factors will impact the insurance costs you get from different providers. While rules vary between states and companies, these are the most common factors:

Your age (except in CA, HI, and MA)

Your gender (except in CA, HI, MA, MI, MT, NC, and PA)

Your credit score (in most states)

The make and model of your new vehicle

Your ZIP code

Your driving record

Your insurance history

Learn more:

How to estimate car insurance before buying a car

Shannon Martin

Licensed Insurance Agent

Most dealerships list their VINs online. Using a VIN for the same year, make, and model as the cars you plan to test drive will get you a closer quote when you’re shopping for coverage.

Step 2: Confirm the insurance coverage you need

Every driver’s needs are a little different. To narrow down what

type of car insurance coverage

is right for you (and the amount of coverage you need), consider the following:

Your state insurance laws: Your insurance agent will advise how much

bodily injury liability coverage

and

property damage liability insurance

you need—and let you know if your state requires other types of coverage, like uninsured/underinsured motorist coverage, personal injury protection (PIP), and/or medical payments (MedPay). Drivers in New Hampshire aren’t required to purchase car insurance.

Your car loan agreement: Lenders will require you to purchase

collision coverage

and

comprehensive coverage

until your auto loan is paid in full. These require deductibles of no more than $500 to $1000 (per typical loan terms) before the insurance kicks in.

The actual cash value (ACV) of your car: If you’re buying a used car with high mileage and a low ACV, it may not make sense to spend a lot on full coverage—but for brand-new vehicles, it’s typically a good idea. Consider adding

gap insurance

new car replacement insurance

if your provider offers it.

Your income and assets: If you have a lower income and few assets, aim for liability in the amounts of 50/100/50. Most drivers, though, should purchase 100/300/100 (or even 250/500/250) to ensure they’re fully covered in the event of a serious accident.

When you’re comparing car insurance rates with Jerry, you can see how adjusting your coverage levels impacts your car insurance premium.

Get final prices to lock in how much your insurance quotes will cost.

Learn more:

New car insurance: What coverage do you need when buying a new car?

Step 3: Gather information for all drivers on the policy

For each driver on your insurance policy, you’ll need to provide the following information:

Name

Birth date

Social Security number

Driver’s license number

Driving history

Step 4: Choose your insurance provider

Based on the quotes you got, customer reviews, and financial ratings, choose the best car insurance company that fits your needs.

Large companies like

Progressive

and

Allstate

offer low rates and good financial strength

Regional insurance companies are also great picks for affordable car insurance coverage options

Many companies also offer additional insurance products and bundling discounts

RECOMMENDED

Compare auto insurance policies

No spam or unwanted phone calls · No long forms

ZIP Code

Find insurance savings

Step 5: Get the VIN of the vehicle you’re buying

You won’t be able to purchase an auto insurance policy until you have the vehicle identification number (VIN) of the specific car you plan to buy.

If your car insurance company gave you a quote based on your personal information and the make and model of the car, expect your insurance premium to change a bit once you update the VIN.

Time Saving Tip:

If you’re financing your vehicle, most insurance companies allow lienholder information to be updated through their app. You can have the binder letter emailed directly to you or the dealer with no wait time at all.

Step 6: Finalize your policy with your insurer

Make sure that your policy is set to start the day you take possession of the car. The last thing you want is to be uninsured when you’re ready to drive off with your new ride!

Your insurance company will issue an insurance card that you can use as

proof of insurance

at the dealership when you buy your car.

You’ll also need to keep a copy of your proof of insurance in the car at all times—which is easier now that it’s legal to show proof of car insurance on your phone in almost every state. You can easily access your insurance card in the

Jerry

app on your phone.

FAQs

How soon after buying a car do you need insurance?

It’s illegal to drive a car without insurance—even a new car. If you buy a car from a dealership, you need to have your insurance policy in place before you sign the paperwork. If you buy from a private seller, this may not be the case.

If you have an existing policy for another vehicle, most car insurance companies require you to report a new car purchase within 7 to 30 days. You can call your insurer to add the new vehicle.

Remember: Legally, there is no grace period for insurance. If you are in an accident or at a traffic stop before adding the car to your insurance policy, you can get a ticket for driving an uninsured vehicle.

Do you need insurance to buy a car from a private seller?

While dealerships typically check your insurance before you buy, a private party might not. But you’ll still need insurance to legally drive any car you buy—no matter where you got it.

Can I drive a car I just bought without insurance?

No. Even if you live next door to the dealership, making the one-block drive without proper auto insurance coverage is illegal—unless you live in New Hampshire, which permits car owners to drive without insurance.