Check insurance costs before you buy a car

Get insurance quotes for each car on your shortlist before you commit to one, using the exact trim or, better, the VIN. Insurance can differ by hundreds of dollars a year between cars at similar prices, because insurers rate each model on its price, repair costs, theft risk and claims history. Adding the premium to the monthly payment gives you the real cost of each car, and it is far easier to change your mind at the shopping stage than after you sign.

Why the car changes the quote

The Insurance Information Institute advises researching what each vehicle will cost to insure when you compare cars, because premiums are based partly on the car's price, the cost to repair it, its overall safety record and the likelihood of theft. Insurers condense those traits into a rating for each model, often a vehicle symbol, and apply it mainly to collision and comprehensive. Liability changes much less from car to car. how the car you drive affects your insurance rate explains the mechanics; this guide is about the process.

Step by step

1. Narrow the list to two to four specific vehicles. Note the model year, trim, engine and drivetrain. A performance trim or a different engine can be rated differently from the base model.
2. Get the VIN when you can. Dealer listings and private sellers can usually provide the 17-character VIN. It lets the insurer decode the exact equipment, including safety features that may earn discounts.
3. Decide the coverage you will carry before you request quotes: liability limits, collision and comprehensive deductibles, and add-ons such as rental reimbursement. Use the same choices for every quote.
4. Quote with your current insurer first, by app, website or agent. Ask for the price of each car added to, or replacing a car on, your existing policy.
5. Get at least two other quotes for the same cars. Insurers weigh vehicle factors differently, so the cheapest car to insure with one company may not be the cheapest with another.
6. Check the data behind the price. The Highway Loss Data Institute's insurance losses by make and model show whether a model's claims are above or below average; IIHS and HLDI insurance loss data: what it shows about cars explains how to read them. IIHS and NHTSA crash ratings round out the safety picture.
7. Check the loan or lease terms. Financed and leased cars require collision and comprehensive, may cap your deductible and may require liability limits above your state minimum.
8. Add it all up in the car insurance quote comparison worksheet and compare the total monthly cost of each car.

What to have ready

what you need to get a car insurance quote has the full list.

A worked example

These figures are hypothetical. You are deciding between two cars with similar sticker prices and 60-month loans.

Car B looked cheaper at the dealership, but it costs $45 a month more once insurance is included, about $2,700 over five years. That difference might reflect Car B's higher repair costs, higher theft losses or a performance trim.

If you are financing, also price gap insurance or loan/lease payoff coverage for each car, especially with a small down payment. A gap calculator can estimate how large the gap could be.

Questions to ask the insurer

• Does the trim or engine change the price, and by how much?
• Which discounts apply to this car's safety and anti-theft equipment?
• If this car replaces my current one, what happens to my existing discounts?
• Who will be rated as the principal driver of this car? (If a teen will drive it, quote that.)
• What will gap or loan/lease payoff coverage cost from you compared with the dealer?
• Are any aftermarket parts the car comes with covered automatically, and up to what limit?

Common mistakes

• Comparing quotes with different coverage. A quote with a $2,000 deductible or state-minimum limits will look cheap. Keep coverage identical across quotes; how to compare car insurance quotes apples to apples shows how.
• Quoting the base model and buying the top trim. Rates can differ by trim; quote what you will actually buy.
• Assuming newer means cheaper to insure. Newer cars often have better safety features, but they are worth more and can cost more to repair.
• Forgetting the driver. The same car can cost very different amounts depending on who drives it most.
• Leaving it until the dealership. At the finance desk, you have little time to shop. A few days of preparation gives you room to compare.

On purchase day

Once you have chosen, call your insurer before you sign so coverage starts the moment you take ownership, and get a new ID card for the dealer. insuring a new car: what to do before you drive off the lot covers the new-car steps, including the grace period and lender requirements, and insuring a used car covers used-car checks. If you are still narrowing your list, what makes a car cheap to insure shows which traits keep premiums low.

Key takeaways

• Price insurance for every car on your shortlist before you sign, using the exact trim or VIN.
• Keep coverage identical across quotes and get at least three, because insurers weigh vehicle factors differently.
• Check HLDI insurance loss data and crash ratings to understand why a model costs what it does.
• Compare the total monthly cost of payment plus insurance, not the sticker price alone.
• Call your insurer before you sign so coverage is in place when you drive away.