Common FAQs About Car Insurance for New Cars

Purchasing a new car is an exciting time for any motorist. Whether it’s your first time enjoying the independence that comes from the open road or finally purchasing your dream automobile, driving a new car off of the lot has a special feeling to it. There are many moving pieces to purchasing a new vehicle including negotiating a price, picking out your features, and figuring out car insurance. Staying protected and legal is important for all motorists with auto accidents. Due to rising costs involved with the labor to repair vehicles, the cost of parts, and the astounding rise in medical costs, an average automobile accident can cost as follows:

  • $7,500 for a crash only involving property damage
  • $61,000+ for a crash involving a nonfatal disabling injury
  • $1.13 million for a fatal crash

As you can see, the importance of car insurance cannot be overstated and even the most cautious motorist can have an expensive accident. Take a look at some of the most important and common questions our clients should understand when purchasing a new automobile and if you need an auto policy, contact the team at TGS Insurance today!

When Do I Need to Purchase New Car Insurance in Texas?

Texans do receive a car insurance grace period when purchasing a new car. It is important to remember, however, that while this period may range from a couple of days to a month, each insurance company will have its own requirements. You also should not depend on the grace period as an absolute and obtaining coverage should be done as soon as possible.

For many motorists, financing is a common path for paying for a new car. For those who are financing, having current insurance before you sign may also be necessary to present to your lender. The current insurance you possess should be enough in most cases to hold you over through signing for your vehicle and through your grace period. Speak with your insurance agent to best understand the terms and conditions set by your provider and your lender to learn more about your financial terms as well.

Can I Transfer My Car Insurance to My New Car?

You can’t transfer your current car insurance policy, but you may add a new car to an existing one or purchase a policy for your new vehicle. If you aren’t replacing your vehicle, you can expect a much shorter grace period when compared to drivers who are.

How Much Is Insurance For a New Car? 

Insuring a new car can be more costly than an older car because it’s worth more and has a higher cash value. But, if you’ve got a car loaded with safety features you could qualify for some great discounts on your auto insurance premium!

How Do I Add My New Car to My Insurance Policy? 

There are a few ways you can add your new vehicle to your auto insurance policy. Some insurance carriers have an app that allows you to easily add your new car in just a few easy steps. Others will ask that you log into your insurance account on their website to add your new vehicle information there. And some insurance providers prefer that you call your insurance agent directly. At TGS Insurance, we’ll handle all of the nitty-gritty details for you so you can enjoy your new ride! Just visit our website here, fill out all the required information and we’ll handle the rest. 

What is the Minimum Car Insurance Required in Texas?

Liability coverage is required by all motorists to remain legal in the state of Texas. These policies will grant you protections of $30,000 per person for injuries, up to $60,000 per automobile accident, and as much as $25,000 of coverage for the damage suffered by property. If at fault, motorists involved in an accident with costs that exceed these limits could be held responsible for paying for these costs on their own. Furthermore, liability coverage will only pay for the other person’s costs. This means that if you are involved in a hit and run or if you are at fault and need your car to be replaced or repaired, you will be held responsible. Considering the rising costs of automobile accidents and the vulnerability these minimum policies can leave, additional coverage is always advised to our clients.

How Much is Car Insurance in Texas?

Around $1,800 is the average amount motorists can expect to pay for their car insurance every year in the state of Texas, which is over the national average. While many different factors will affect your rate, the average client of TGS Insurance saves $1,237 a year.

How Can I Save Money on My Car Insurance Premium?

There are many different ways for you to save money on your car insurance premiums. Depending on your age, driving record, and how you use your vehicle can all raise or lower your car insurance rates. Even lowering your credit score can help your premium and driving safely and avoiding accidents and tickets is always encouraged. For more tips on saving money, take a look at our article here. The best way to lower your car insurance policy? By shopping amongst many top-rated insurance carriers, you can reduce your bill without reducing your coverage, but who has time for that?

We do.

Here at TGS Insurance, we comparison shop through our bank of more than 35 top-rated auto insurance carriers to find the best rate promptly for you so you don’t have to. We can also bundle your auto and home insurance policies together for maximum savings and if your rate goes up in the future, your agent continues to work for you year after year to find the right coverage for the lowest price on the market. 

About Buddy Blouin

Buddy is a content writer for TGS Insurance and has been with the company for a year. He works to create digestible content that provides value to the reader. When he is not writing articles, you'll find him watching sports, grilling, or hanging out with friends.