Home Car insurance Car insurance rates How to buy cheap car insurance for a new car How to buy cheap car insurance for a new car Compare quotes from several insurers before you buy — it's the surest way to get full coverage on a new car at the lowest rate, which averages about $215 a month. View Carriers Please enter valid zip Compare top carriers in your area Written by Alisha AmbreAlisha AmbreAlisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.VIEW FULL PROFILE | Reviewed by Laura LongeroLaura LongeroLaura Longero is an insurance expert with 15 years of experience simplifying complex financial topics, Laura provides clear, expert-backed guidance to help drivers make smart, confident decisions.VIEW FULL PROFILESee moreSee less | Updated onJuly 3, 2026 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. The cheapest way to insure a new car is to compare quotes from several insurers before you buy, since rates for the same coverage can vary by hundreds of dollars a year between companies. But cheap shouldn’t mean bare-bones. On a new car, full coverage is the right call — and it’s required if you’re financing or leasing — so aim for the lowest rate on the coverage you actually need, not the lowest number overall. The average cost of full-coverage car insurance for a new car is $215 a month, or $2,578 a year, though your rate varies with your insurer, your coverage level, and the model you choose. Car insurance is mandatory in every state except New Hampshire, so you’ll need proof of coverage in hand before you can drive your new car home. If you already have a policy, that part is easy—call your insurer with the new car’s details, and most will extend coverage automatically for a short grace period, often up to 30 days, so you can drive home the same day. Protect your finances before you drive off the lot Get full coverage if you’re financing or leasing. Liability alone won’t repair your own car. One unprotected crash can leave you owing thousands on a vehicle you can’t drive. Add gap insurance if your down payment was small. New cars lose value fast. If yours is totaled early, gap coverage pays the difference between its market value and what you still owe, so a write-off doesn’t become debt. Confirm your grace-period coverage includes collision and comprehensive. It often matches only your old policy, which may be liability only, leaving a new car underprotected on the drive home. Compare quotes from at least three insurers before you buy. The same car and coverage can vary by hundreds of dollars a year, and locking in the lowest rate upfront protects you every month you own the car. Raise your deductible only as far as you could cover tomorrow. A higher deductible lowers your premium, but set it to an amount you could pay out of pocket today without strain. How do you get car insurance for a new car? You need proof of car insurance before you can drive a new car off the dealership lot. If you already have a policy for another vehicle, the easiest way is to call your insurance agent — many policies automatically extend coverage to a new car for a short grace period. Car insurance is required by law in nearly every state, so it’s worth confirming your coverage before you head to the dealer. Some states, like Texas, even require insurers to automatically extend your existing coverage to a new vehicle for a set period. That said, this grace-period coverage often comes with limits, so it’s worth checking with your insurer on exactly what’s covered and for how long before you rely on it. Here’s a step-by-step approach on how to buy insurance for a new car: Call your current insurer (if you have one). Let them know you’re buying a new car and ask if your policy extends automatically, and for how long. Get the car’s details ready. You’ll need the VIN, make, model, and year to add it to a policy or get an accurate quote. Compare quotes if you’re shopping for a new policy. Get quotes from a few insurers to make sure you’re getting a good rate before you commit. Choose your coverage. Decide on liability limits and whether you need full coverage, especially if you’re financing or leasing. Get proof of insurance. Once your policy is active, your insurer will provide an insurance card or digital proof through their app — bring this with you to the dealership. Confirm with the dealer. Some dealerships will want to see proof of insurance before you drive off the lot, so have it ready. Key Takeaways Comparing quotes from a few insurers before you buy is one of the easiest ways to find a lower rate on a new car. The average driver pays $215 a month, or $2,578 a year, to insure a new car, though rates vary by insurer and coverage level. If you’re financing or leasing, your lender will likely require full coverage, which includes collision and comprehensive insurance. How much does insurance cost for a new car? Insuring a new car usually costs more than insuring an older one, since full coverage premiums average around $2,500 a year across major insurers, compared to far less for state-minimum liability alone. The exact cost depends on your insurer, your coverage level, and the specific car you buy. New cars tend to cost more to insure because they’re worth more, cost more to repair with newer parts and technology, and often carry a loan or lease that requires full coverage rather than just liability. Here’s how full coverage compares to state-minimum coverage across major insurers: Insurance companyAverage annual full coverage premiumAverage monthly full coverage premiumUSAA*$1,628$406Travelers$1,962$767GEICO$2,159$539Nationwide$2,524$932Progressive$2,569$752State Farm$2,875$1,025Allstate$3,159$946Farmers$3,207$950 *USAA is only available to military community members and their families.Powered by: Adding a new car to your policy? Here’s what to do Most insurers offer up to a 30-day grace period to add a new or new-to-you vehicle, giving you time to finalize your policy. Your insurer should also be able to provide instant proof of insurance, so you can hit the road without delay. What car insurance coverage do you need for a new car? Most new car buyers need full coverage, which combines liability, collision, and comprehensive insurance, especially if you’re financing or leasing. Liability alone may meet your state’s legal minimum, but it won’t cover damage to your own car. Even if you own your car outright, it’s worth carrying higher liability limits than your state’s minimum. A serious accident can easily exceed basic liability limits, leaving you responsible for the difference out of pocket. Here’s a breakdown of the coverage types to consider: CoverageWhat it coversWho typically needs itLiabilityMedical and legal costs for others, plus damage you cause to their propertyRequired in nearly every stateCollisionRepairs to your car after a crash, regardless of faultRequired by most lenders and leasing companiesComprehensiveDamage from non-collision events like theft, fire, or weatherRequired by most lenders and leasing companiesGap insuranceThe difference between your car’s value and what you still owe if it’s totaledRecommended if you financed or leased with a small down payment Powered by: Leasing a car? Check your liability limits If you’re leasing rather than buying, your leasing company likely requires higher liability limits — generally $100,000/$300,000 for bodily injury and $50,000 for property damage. Make sure your policy meets these minimums before you sign. What to read next Most and least expensive convertibles to insure Cheapest high-performance cars to insure Average car insurance rates by age and gender Who should be listed on your car insurance policy? Car insurance rates by ZIP code The most expensive and cheapest cars to insure in 2026 Car insurance estimate by model 2026 Car insurance mileage brackets: How your annual mileage affects your premiums Most and least expensive trucks to insure in 2026 The most and least expensive states for car insurance Factors that affect your car insurance rates What is car insurance? A simple guide to how coverage works and what you need Average car insurance cost in 2026 How much does car insurance cost a month in 2026? Car insurance for women Cheap car insurance buying guide: How to get affordable coverage Compare and shop auto insurance Show more Our agents make it hassle-free to get the right quote. Call (844) 814-8854 Ethan Available Now Jack Available Now Robbie Available Now Ellie Available Now How can you save money on new car insurance? You can save money on new car insurance by comparing quotes, raising your deductible, and asking about discounts. Here are a few ways to lower your costs: Compare quotes from multiple insurers: Rates for the same car can vary significantly between companies, so shopping around before you buy is one of the easiest ways to save. Raise your deductible: A higher deductible usually lowers your premium, but it also means more out-of-pocket cost if you file a claim. Ask about discounts: Insurers offer a range of discounts you may qualify for, so it’s worth asking what’s available. Take a defensive driving course: Completing one can lower your premium with many insurers. Consider usage-based insurance: If you drive low mileage, a pay-per-mile policy could save you money. If you’re a safe driver, a program that tracks your habits may reward you with a lower rate. Frequently asked questions Can I get an auto insurance quote before I buy a car? Once you’ve chosen the car model, you’ll need to shop for an insurance company, especially if this is your first car. Insurers use different formulas for setting rates, so the price of a policy can vary by hundreds of dollars. That means you could overpay for coverage if you don’t shop for the lowest rate. You should get quotes from at least three insurers when shopping for a policy. How do you get car insurance without a car? If you do not yet own a vehicle, start with a non-owner’s policy. It is designed for individuals who need coverage but do not own a vehicle. Can I drive a car without auto insurance if I just bought it? In most states, it is illegal to drive without car insurance – even if you just bought your car. The last thing you want to do is inadvertently drive home without insurance — a crime with strict penalties. Further, if you drive an uninsured vehicle and get into an accident, you’ll be liable for the injuries and damages you cause to others as well as the damage to the new vehicle. Never drive uninsured. How soon after buying a car do you need insurance? Policies that extend coverage to new cars give you seven to 30 days to buy a new policy and inform your car insurance company that you purchased a new vehicle. However, it is always a good idea to notify your insurance company before picking up the car. For one thing, you will want to ensure that the extended coverage includes collision and comprehensive coverage. If it doesn’t, your finance or leasing company will require you to add physical damage coverage to your new car before you drive it home. Will my old car insurance cover a new car? While your existing auto insurance policy may very well automatically extend to your new car, the coverage may not be enough for a new vehicle. Some policies only extend coverage to a new vehicle if it is replacing the existing insured vehicle. The insurer may also only extend the same coverage that was on your previous vehicle. Without adequate coverage, you could find your new car not covered by insurance should you get into an accident on the way home. Do I need car insurance if I’m leasing? You may need to upgrade your coverage if you’re leasing a vehicle. Leasing companies require that you carry higher liability limits of $100,000/$300,000 for bodily injury and $50,000 for property damage. Generally, insurance companies can get you the coverage you need within 24 hours. How do I transfer a title on a new car? If you financed your car, your lender holds the title until it’s paid off and is listed as a lienholder, so the title won’t transfer to you until then. If you bought the car outright, the seller gives you the title directly once it’s paid for. Title procedures vary by state, but either way, you’ll need to complete registration and get tags through your DMV, which requires proof of insurance. Alisha Ambre . .Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game. In case you missed it The most expensive and cheapest cars to insure in 2026 Do you have to add a teenage driver to your car insurance policy? Teenage car insurance rates: How much is car insurance for teens? 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Most and least expensive models to insure Average car insurance rates by age and gender 1/1 On this page How do you get car insurance for a new car?How much does insurance cost for a new car?What car insurance coverage do you need for a new car?How can you save money on new car insurance?Frequently asked questions ZIP Code Please enter valid ZIP See rates 1-833-708-5453