You’ve found the perfect car, and everything seems to be going great. You sign the papers, take the keys, and feel that rush of excitement. But then, a week later, your car insurance bill arrives, and it’s double what you expected! Suddenly, your new car feels a lot less affordable, and your budget is wrecked.
This scenario happens to so many people. Imagine buying a car like the Hyundai Ioniq 5 and getting hit with a $4,000 insurance bill for just six months of coverage. It’s a shock, and it can completely change how you feel about your new car purchase. What was supposed to be an exciting moment can quickly turn into a substantial financial stressor.
The good news? You can avoid all of this by simply getting an insurance quote before you even step into the dealership. By taking just a few minutes to check your insurance rates, you can prevent any unpleasant surprises down the road. This guide will show you exactly how to get a quote and take control of your car-buying experience. Don’t wait until after you buy the car – get the information you need now and buy with confidence!
Why You Absolutely Must Get an Insurance Quote First
Getting a car insurance quote might seem like another chore on your long to-do list, but it is one of the most important steps. It is just as critical as the test drive. Here’s why this single action can save you a massive amount of money and frustration.
It’s a Major Part of Your Budget
When we think about buying a car, we usually focus on the sticker price and the monthly payment. But that’s only part of the story. The Total Cost of Ownership is what you need to consider. This includes your car payment, gas, maintenance, and, of course, insurance. For some cars, the insurance can be a significant portion of the monthly cost. Ignoring it is like planning a vacation without budgeting for flights or hotels. You need the whole picture to know if you can truly afford the car you want.
Avoid the Sticker Shock After the Sale
The worst time to find out your insurance is expensive is after you’ve already signed the paperwork. The story about the Ioniq 5 owner is a perfect example. A sudden, massive insurance bill can turn the joy of a new car into a source of significant stress. By getting a quote beforehand, you eliminate that risk. You will know the numbers upfront so that you won’t have any surprises waiting for you in the mail.
Rates Can Vary Wildly Between Different Cars
You might be surprised to learn how much insurance rates can vary between car models, even when they have similar prices. A sensible sedan might be cheap to insure, while a sporty coupe could cost much more. We’ve seen cases where replacing a regular SUV with a performance model like a Subaru WRX caused insurance rates to jump significantly. You might find that the car you thought was a great deal is more expensive in the long run because of its high insurance cost.
It’s Often a Requirement for Financing
If you are getting a loan to buy your car, the lender will almost certainly require you to have full insurance coverage before you can drive away. They want to protect their investment. Walking into the dealership with a quote already prepared shows that you are a serious and organised buyer. It can make the final steps of the purchase much smoother and faster. You will not have to scramble to find a policy while the finance manager is waiting.
The Key Factors That Will Shape Your Quote
Insurance companies look at a lot of different things to decide how much you will pay. It all comes down to risk. The more risk they see, the higher your premium will be. Let’s break down the main factors so you know what to expect.
The Car Itself: More Than Just a Pretty Face
The specific car you choose is one of the most significant factors. Insurance companies analyse data on millions of vehicles to identify which ones cost them the most money.
- Make, Model, and Year: A brand-new luxury car will cost more to insure than a 10-year-old Honda Civic. This is because it costs more to repair or replace if it is in an accident.
- Vehicle Identification Number (VIN): This is the car’s unique 17-digit fingerprint. It tells the insurance company everything they need to know, including the engine size, trim level, and safety features.
- Repair Costs: Cars with expensive parts or specialised technology, like many electric vehicles (EVs) or European brands, cost more to fix. Even a minor car accident with sensors can result in a surprisingly high repair bill, leading to higher insurance rates.
- Theft Rates: Some cars are stolen more often than others. You may have heard about confident Kia and Hyundai models being targeted by thieves. Because of this higher risk, many insurance companies have raised their rates dramatically for these vehicles.
- Safety Ratings: Cars that perform well in crash tests and have features like automatic emergency braking and blind-spot monitoring often get better insurance rates. They are simply safer and less likely to be in a serious accident.
You, The Driver: Your Profile
Your personal information plays a huge role in what you pay. Insurers use this data to predict how likely you are to make a claim.
- Your Age: Younger, less experienced drivers, especially teenagers, almost always pay the highest rates. The data indicates that they are involved in more accidents. Rates typically start to go down as you get older and gain more experience.
- Your Driving Record: This is a big one. If you have a clean record with no accidents or tickets, you will get the best rates. A speeding ticket, an at-fault accident, or a DUI can cause your premium to increase significantly for several years.
- Your Location: Where you live matters a lot. If you are in a crowded city with a lot of traffic and theft, like New Orleans, you will pay more than someone in a quiet, rural town. Insurance companies look at the data for your specific zip code.
- Your Credit History: In most states, insurance companies use a credit-based insurance score to help set your rates. They have found that people with better credit tend to make fewer claims.
- Your Marital Status: Statistics show that married people tend to be safer drivers, so they often get slightly lower rates than single people.
The Coverage You Choose: Building Your Policy
The types and amounts of coverage you select will directly affect your final price. Here are the main parts of an auto policy explained simply.
- Liability Coverage: This is the part that is required by law in nearly every state. It pays for the other person’s medical bills and property damage if you cause an accident. It does not cover your car or your injuries.
- Collision Coverage: This pays to repair or replace your car if it is damaged in an accident, whether it was your fault or not. If you have a loan on your car, your lender will require you to have this.
- Comprehensive Coverage: This covers damage to your car that is not from a collision. Think of things like theft, vandalism, fire, hail, or hitting an animal. Your lender will also require this if you have a loan.
- Deductibles: This is the amount of money you have to pay out of your pocket before the insurance company starts to pay. For example, suppose you have a $500 deductible and your car has $2,000 in damage. In that case, you pay the first $500, and the insurance company pays the remaining $1,500. Choosing a higher deductible will lower your monthly premium, but you will have to pay more if you have a claim.
Your Step-by-Step Guide to Getting an Insurance Quote
Now that you know the why and what, let’s get to the how. Getting a quote is easier than you might think. We will walk you through it step by step.
Step 1: Find a Few Cars You Like
Start by narrowing down your search to two or three specific cars. You cannot get an accurate quote on a vague idea like “a midsize SUV.” You need to know the exact year, make, and model. For example, instead of just “a Honda CR-V,” you need to decide on a “2024 Honda CR-V EX-L.”
Step 2: Get the Vehicle Identification Number (VIN)
This is the most critical piece of information you need for an accurate quote. The VIN tells the insurance company every detail about that specific car.
How to find the VIN:
- On a Dealer’s Website: Most dealerships list the VIN for every car in their online inventory. Look through the vehicle details page.
- On Car Shopping Sites: Websites like CarGurus or Autotrader often list the VIN for the cars they show.
- Ask the Seller: If you are buying from a private party, just ask them to send you a picture of the VIN. You can usually find it on the driver’s side dashboard, visible through the windshield, or a sticker inside the driver’s door.
Having the real VIN from a car you might buy is always best.
Step 3: Gather Your Personal Information
To get a quote, you will need to provide some basic information about yourself and anyone else who will be driving the car. Have this ready to make the process quicker:
- Your full name and date of birth.
- Your driver’s license number.
- Your home address.
- The same information applies to any other drivers in your household.
- Please provide your current insurance company (if you have one).
Step 4: Choose Your Method to Get Quotes
You have a few great options for getting quotes. We recommend getting at least three quotes from different places to make sure you are getting a good deal.
- Online or Through an App: This is the fastest and easiest way. Most major insurance companies, like Progressive and GEICO, have excellent apps and websites. You can enter the car’s VIN and your personal information and get a quote in just a few minutes. This is perfect for when you are at the dealership and want to compare a few different cars quickly.
- Calling an Agent: If you prefer talking to a person, you can contact an insurance agent. This is an excellent option if you have questions or want to ensure you are getting all the discounts you qualify for, such as bundling your car and home insurance.
- Using an Insurance Broker: A broker is an independent agent who can shop for quotes from many different insurance companies at once. This can save you a lot of time and potentially find you a great deal from a company you might not have thought of.
Step 5: Compare Your Quotes Apples-to-Apples
When you get your quotes, make sure you are comparing the same things. A cheap quote is not a good deal if it has very little coverage.
- Match the Coverage Limits: Make sure each quote has the same amount of liability coverage (e.g.,100,000/300,000/$50,000).
- Match the Deductibles: Ensure the comprehensive and collision deductibles (e.g., $500 for both) are the same on each quote.
- Look at the Extras: Check if the quotes include things like rental car reimbursement or roadside assistance.
Only when all the details match can you truly see which company is offering you the best price.
“My Quote is How Much?!” – Understanding Shockingly High Rates
Sometimes, even after doing your homework, a quote comes back much higher than you expected. This usually is not random. There are specific reasons why some cars cost a fortune to insure.
The Hyundai and Kia Theft Problem
In recent years, specific models of Hyundai and Kia vehicles without engine immobilisers have become very easy to steal. This led to a massive spike in thefts across the country. Because insurance companies had to pay out so many claims, they raised the rates for these models. In some areas, it has become challenging and expensive to get insurance for these specific cars.
The EV and High-Tech Repair Surprise
Electric vehicles and modern cars are packed with fantastic technology, from large touchscreens to advanced safety sensors in the bumpers. This technology is excellent to have, but it can be costly to repair. A simple fender bender might require replacing multiple sensors and recalibrating complex systems, turning a minor repair into a multi-thousand-dollar job. This higher repair cost is a big reason why cars like the Ioniq 5 and Teslas can have surprisingly high insurance premiums.
The “Sports Car Tax”
It is no secret that performance cars often come with higher insurance rates. Cars like the Subaru WRX, Mazda Miata, or Porsche Boxster are associated with more spirited driving, which insurance companies see as a higher risk for accidents. Even if you are a very safe driver, the statistics for the car model itself can lead to a higher premium.
Your Location Can Be a Game Changer
Even if you have a perfect driving record, your zip code can have a considerable impact. Insurance companies track the number of accidents, thefts, and lawsuits in every area. Live in a dense urban area with high accident rates or a neighbourhood with a lot of car thefts. Your rates will be higher than for someone living in a sleepy suburban or rural area, even if you are driving the same car.
You Have a Quote, Now What?
Congratulations! You have done your homework and have a realistic insurance quote in hand. Here is how to use that information to finish your car purchase with confidence.
Finalise Your Budget
Now you can calculate the actual monthly cost of your new car. Add your estimated car payment, your new insurance premium, and your estimated monthly gas and maintenance costs. Does that final number still fit comfortably in your budget? If it does, you can move forward with confidence. If it is too tight, you might want to look at a different car that is cheaper to insure.
At the Dealership
When you are ready to buy, the dealership will ask for proof of insurance. Since you have already gotten a quote, you are prepared. You can show them the quote or your current insurance card. You can even call your insurance agent or go on the app right there at the dealership to activate the new policy. This makes the final part of the process quick and easy.
If You Already Have Insurance: The Grace Period
If you already have a car insurance policy, most companies give you what is called a “grace period” to add your new car. This period is typically between 7 and 30 days, depending on your insurer and your state. This means that your existing coverage automatically extends to your new car for a short time, giving you time to add it to your policy officially. However, it is always a good idea to call your insurance company as soon as possible, ideally the same day you buy the car, to avoid any problems.
Frequently Asked Questions
Q: Can I get an insurance quote without a VIN?
A: Yes, you can get a general estimate without a VIN, but it will not be as accurate. Providing the exact year, make, and model will get you a good ballpark number. However, for the final, lock-in price, you will always need the specific VIN.
Q: How long is a car insurance quote good for?
A: Most quotes are good for 30 to 60 days. However, if your situation changes during that time, such as receiving a speeding ticket or moving to a new address, the quote will likely change as well.
Q: Does getting a lot of insurance quotes affect my credit score?
A: No. When insurance companies check your credit, they use a “soft pull,” which does not affect your credit score. You can shop around and get as many quotes as you like without any negative impact.
The Bottom Line: Be Prepared and Buy with Confidence
Buying a new car is a substantial financial decision and an exciting moment. By taking the simple step of getting an insurance quote before you buy, you are protecting yourself from a significant economic shock. It is a quick, easy process that gives you a complete picture of what your new car will cost you each month.
So, before you fall in love with that perfect car on the lot, take a few minutes to check the insurance. It is a small step that makes a huge difference, allowing you to drive away happy, confident, and with no surprises.
