back to articles | March 06, 2024 | Moses Mwangi

Categories: Useful Automotive Information

Why Should You Get Auto Insurance Quote Before You Buy a New Car

Buying a new car is an exciting adventure. It's filled with test drives, model comparisons, and the thrill of finally getting behind the wheel. However, before hitting the road with your new vehicle, you are legally required to have the right auto insurance.


Buying a new car is an exciting adventure. It's filled with test drives, model comparisons, and the thrill of finally getting behind the wheel. However, before hitting the road with your new vehicle, you are legally required to have the right auto insurance. In fact, the dealer will not allow you off the lot without proof of insurance, especially if they funded the car purchase.

That said, it's crucial you get an auto insurance quote before purchasing insurance. Read on to understand why you must get an auto insurance quote before you buy a new car.

What is an auto insurance quote?

An auto insurance quote is also called a car insurance quote. It gives you a preliminary understanding of what your coverage might cost. It's not exact, and the final price might differ slightly due to additional factors the insurer will consider during verification. However, it's a crucial step in shopping for car insurance and should not be skipped. Asking for an auto insurance quote doesn't commit you to buying the policy. It's simply an estimate to help you compare and shop around.

Why should you get an auto insurance quote before you buy a new car?

While you won't require a car insurance quote when just browsing inventory, you will definitely need to show the dealer proof of insurance before driving the car home. Here are a few reasons to get an auto insurance quote before purchasing a new vehicle.

Budget accurately

Let's face it: when most people talk of a new car budget, they often refer to just the purchase price. However, that's not really true. You should also factor in insurance costs and taxes. New cars usually have higher insurance premiums due to their value and safety features. Moreover, the model and make will also impact the insurance cost.

Getting an insurance quote before purchasing will help determine how much you'll spend on the car to know if you can afford that specific model. For instance, if the insurer considers the vehicle you want to be high-risk, you could consider a different car to lower the premiums. However, if you went to the dealer without knowing the cost of insuring the vehicle, you may have to spend more than your initial budget.

Get the best deal

The auto insurance market is very competitive. Different providers offer varying coverage options and pricing. Getting a quote involves talking to various insurance providers. These could be insurance companies, brokers, and agents. Obtaining multiple quotes will help you compare and contrast to find the best coverage at a reasonable price.

Remember, the purpose of getting quotes is to get the best deal. While cost is essential, the cheapest quote is not always the best. Ask yourself, does the coverage meet your insurance needs? Get quotes from at least three to five reputable insurance companies before you decide. An insurance broker is also a good resource because you can compare quotes from different insurance companies in one go.

Hasten the buying process

For first-time car buyers, the whole process can be overwhelming. For this reason, you are likely to make mistakes if you are not well prepared. When you get insurance quotes before buying the car, you'll be prepared on what to expect, making the whole buying process faster.

Avoid dealership pressure

Walking into a dealership with little or zero knowledge of insurance is a big mistake is a big mistake. Some dealerships offer insurance coverage, and they'll make you think it's the best insurance in the market. And because you can't drive the car off the lot without insurance, it will seem like the best option.

While buying from them is convenient, it's not always the best offer. Even those that don't offer insurance coverage will refer you to partner insurance companies to earn a commission. Having your own research beforehand strengthens your position and prevents rushed decisions.

Understand your coverage options

Auto insurance policies come with various coverage options. You could choose liability, collision, comprehensive, and more. Different cars also have varying risks. For instance, insurance companies consider some car models high-risk because they are more likely to be stolen. For this reason, their cost of insurance is higher. Getting quotes will help you understand the specific coverage levels and deductibles recommended for your chosen car. This way, you'll have the proper protection.

Negotiate with confidence

Knowledge is power, and armed with quotes from multiple providers, you can negotiate a better deal with your preferred insurer. You can also use them as leverage when considering dealership insurance options. You'll know exactly how much you are willing to spend and how much coverage you'll get.

Comply with the law

The law in most states requires you to get car insurance before you drive your new vehicle. Getting a quote before ensures you're prepared to meet legal requirements immediately. You don't have to wait: pay for the car and drive home without worrying about legal consequences and financial penalties.

What will you need to get a car insurance quote?

Here's a checklist of the information to have on hand to help you get a personalized insurance quote that meets your needs.

Personal Information:

  • Full name
  • Address (where the vehicle will be parked most of the time)
  • Date of birth
  • Contact information (phone number and email address)

Vehicle Information:

  • Make, model, and year of the car
  • Vehicle identification number (VIN)
  • Mileage on the car
  • Vehicle usage (commute, pleasure, business)

Driving History:

  • Driver's license number
  • Driving history, including any accidents or violations
  • Previous insurance history (if applicable)

How to get an auto insurance quote

Getting an auto insurance quote is a straightforward process. You can walk into your preferred insurance company office in person or call by phone. Alternatively, you can do this online via direct insurer websites: Most major companies offer online quote tools. Moreover, online quote comparison websites can help you compare multiple providers simultaneously for a broader picture. Here's how to get the best insurance quote.

Choose the coverage you want

Decide on the type and amount of coverage you want. The most common types of coverage include liability, collision, comprehensive, uninsured/underinsured motorist, and medical payments. Before you choose the coverage you want, research widely on what they cover and its limits. When speaking with an insurance agent, they'll explain in detail. Ask questions where you don't understand so that you can choose the right coverage. You can also consider additional coverage options like roadside assistance, rental car reimbursement, or gap insurance.

Choose your deductible amount

Deductible is the amount you pay out of pocket before your insurance coverage kicks in. A high deductible will decrease your overall insurance rate but increase your out-of-pocket costs if you file a claim.

Choose your coverage limits

Decide on the limits for each type of coverage. For example, liability coverage may have separate limits for bodily injury and property damage.

How to get a cheaper auto insurance quote

The easy way to get the cheapest car insurance quote is to choose less coverage. That means selecting a plan with lower coverages and benefits, which may also lead to lower premiums. There are also trade-offs to having less coverage, but be sure to weigh the risks first.

Other ways to help you reduce your insurance premiums include:

  • Maintaining a stellar driving record
  • Improving your credit score
  • Bundling your insurance policies


Getting an auto insurance quote is essential if you plan to buy a new car. Doing this will help you understand your coverage option, hasten the insurance buying process, and avoid dealership pressure. Moreover, the quotes will help you budget accurately and get better deals. And even if you buy coverage from the dealership, the quote will help you negotiate better terms. Remember, an auto insurance quote estimates the amount you will likely pay. For it to be helpful, you must give accurate information.