How much should I budget for car insurance?

I got preapproved for a loan for a new car. I'm looking at a 2021 Honda CR-V. I know about how much my car payment will be, but I also want to budget for car insurance. How much will it be?

Answer
Car insurance is one of the most important expenses when purchasing a car. Great job on taking the initiative to budget because many people don’t!
Start by looking at several car insurance companies to determine how much car insurance might be. Car insurance providers look at a multitude of factors when determining a rate. Without requesting quotes, knowing exactly how much to budget is difficult.
To shop around with insurers, you’ll need to provide some basic information. This includes your:
  • Name
  • Address
  • Date of birth
  • Driver’s license number
  • Social Security number
You will also need the VIN (vehicle identification number) for the CR-V you’re looking to purchase and the type of coverage you need. Because you’re financing the vehicle, the lender will require full coverage car insurance, which is more expensive than basic liability.
If you’d rather leave the hard work of gathering quotes to someone else, use Jerry. Jerry finds you the top quotes from up to 50 providers in seconds!
Once you have a good idea of the average cost of your insurance, you can decide whether it fits your budget. If it doesn’t, consider looking at another model or shop around for another provider. You have a lot of different options available to ensure a new car fits your budget.
Emily Maracle
Answered on Oct 22, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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