What if I'm Buying Insurance for a New Car? And What if it's My First Car?

When buying—and insuring—a new car, a little research can go a long way toward keeping you safe, and saving you money.

If you’re getting ready to purchase your very first car, there’s a lot to consider: new or used, leased or owned, price range, financing, safety ratings. It can easily feel overwhelming—especially when you consider that all of these factors can affect your auto insurance costs.

But with a little research, and a realistic sense of your needs and budget, you’ll be able to make the best decision possible—and probably save some money in the process.

Stay Grounded with the Facts

It’s always fun to dream big, but figuring out which car is right for you, your life—and your budget—means you need to be practical, too.

Start by answering some simple questions:

• How will you be using your new car? (As a commute car, a family car, etc.)
• Will you be driving passengers? (And if so, how much space will you need?)
• How many miles will you be averaging per week?
• Where will you be driving, and parking? (Highway, city, etc.)
• Do you need safety, comfort, economy, or all three?

It’s also smart to consider the kind of features that will be most important to you—things such as fuel efficiency, cargo capacity, leg room, two-or four-wheel drive, transmission type (automatic or stick), safety and braking systems. Once you have a sense of the facts, you’ll have a clearer sense of the size and type of car that’s right for you.

Know Your True Costs

The true costs of car ownership go far beyond the sticker price. So take a realistic look at your budget, and remember to factor in:

• Monthly financing and interest fees
• Taxes
• Maintenance
• Monthly fuel costs
• Auto insurance

Be clear and realistic about any “extras” you might be considering: certain features (even those that might seem standard) can add up quickly, sometimes increasing your purchase price by 10% or more.

To better guard against “price-creep,” try shopping online. Many auto manufacturer websites let you customize your car, feature by feature. This can help reveal hidden feature-costs and potentially unnecessary expenses.

Insuring Your Big Purchase

Above all, keep in mind that auto insurance is one of the most important costs attached to your new car.

Additionally, the choices you make, and the kind of car you buy will have a direct impact on your insurance premiums. Your car’s sticker-price, overall safety rating, and theft risk can all play a part in determining your insurance rates.

Not all Cars are Created Equal

For instance, an expensive car or luxury vehicle will most likely cost more to insure than an economy car. This is because an expensive car usually costs more to maintain (parts and labor are pricier), and it will usually hold a higher reimbursement value if deemed a total loss.

However, not all comparisons are this cut-and-dried. Certain economy cars might cost almost as much to insure as a high-end vehicle if:

• They incur a great deal of damage in an accident (and thereby cost more to fix, or are more likely to be deemed a total loss)
• They inflict more damage to other cars (or passengers) in an accident

Also, certain economy cars may not qualify for the kinds of discounts a mid- or high-priced vehicle will. This, too, can keep insurance premiums higher than they otherwise could be.

Remember Your Discounts

That brand new car may also have factory-standard features that might save you money. At Allstate, we offer a wide variety of discounts, particularly for cars that may include:

• Passive restraint systems
• Anti-lock brakes
• Front- and side-impact airbags
• Daytime running lights
• And, in some states, anti-theft devices

You might also be interested in our unique New Car Replacement option. With this coverage, if your new car gets totaled within the first 3 model years, you can get a new car—not just the depreciated value.

A Little Research Goes a Long Way

Once you have an idea of the kind of car you’ll be insuring, you can get a personalized auto quote in minutes. Or, get a Ballpark Estimate without even giving your name or other personal information. Either way, you’ll find out how affordable great Allstate coverage can be.