New Year, New Ride: Insuring Your New Car

New cars with big red bows at car dealershipDid you get a brand-new car with a big red bow for Christmas? Are you treating yourself to a shiny new set of wheels to end the year? Or do you have a goal of saving up in the new year to buy a new ride? Either way, if you have—or are about to have—a new vehicle in your life, you’ll need auto insurance. After all, whether it was a big-ticket present to you or a solo investment, the most important thing is that you and the occupants are protected when behind the wheel. Let’s discuss the must-knows of insuring your new car. 

Auto Insurance Requirements 

Starting with the basics: here in Massachusetts (and almost all 50 states), auto insurance is required by law, no matter what kind of car you drive. The minimum insurance required varies from state to state; the required types of coverage are typically liability, collision and comprehensive, uninsured motorist coverage, and personal injury protection (PIP). On top of state laws, if you have a car loan or lease, your lender or leasing company might require additional coverage. You can review our two-part comprehensive guide, “The 12 Parts of Auto Insurance,” here: Part 1 & Part 2. 

Other Types of Coverage to Consider When Insuring Your New Car 

Aside from minimum insurance requirements, you may consider adding other types of coverage to give you extra protection. 

Gap Insurance 

Also known as loan/lease payoff coverage, gap insurance will pay the difference between what you owe on the vehicle and the actual value of your car if it’s totaled. In other words, it fills in the “gap.” 

Rental Reimbursement Insurance 

Rental reimbursement coverage pays for a rental car or substitute transportation (like fares for trains, subways, and buses) if your car is being repaired for a problem covered by your policy (like a car accident). 

Roadside Assistance Insurance 

If your car is disabled, roadside assistance insurance will cover the cost of services to come to your rescue, like a tow truck, a jump-start for a dead battery, and fuel delivery. 

How Much Does Insurance on a New Car Cost?  

How much you can expect to pay will depend on several factors, including: 

  • The vehicle’s make and model 
  • Your driving record 
  • Where you live 
  • Your claims history 
  • The amount of coverage you choose 
  • The amount of your car insurance deductible 
  • Your credit-based insurance score 

You can also check out our whitepaper, 6 Factors That Spike Your Auto Insurance, to learn more about what else could impact your rate. And before you get the new vehicle, you should shop around to compare prices if you’re looking to save money on your auto insurance. Most insurance providers can give you a free quote by phone, in person, or online like we do – click here. 

Information Needed When Insuring Your New Car 

When you’re ready to purchase insurance for your new vehicle, have the following information ready: 

  • The vehicle identification number (VIN) for the new car 
  • Driver’s license numbers for all drivers on the policy 
  • Date of birth for all drivers on the policy 
  • Garaging address (usually your home address) 

This blog has explained what you need to know when insuring a new personal vehicle, but if you’re looking to insure a new commercial vehicle for your business, you’ll want to start here. 

Getting a new car can be so exciting—from the shiny exterior to the spotless interior, and all the new bells and whistles that come with it. But don’t let all this excitement distract you from what truly matters. If you just got a new vehicle or are planning to purchase one soon, give the expert agents here at TJ Woods a call. We’re happy to walk you through our auto insurance offerings and discuss which policies will best fit your unique needs. Happy driving!