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Labor Day Car Buying Insurance Guide

Labor Day is a great time to buy a new car. The next generation of vehicles is out, making older models less expensive. RAM, Hyundai, Nissan, Toyota and Honda all have deals that can help save you money. Some are offering 0% financing for six years. Others are offering cash-back incentives up to $6,000. Your existing car insurance policy will probably cover the new vehicle until you’re able to properly place it on a new plan. Make sure to buy adequate coverage and higher than required limits so you don’t have to reach into your pocket if you have an accident. Also, see if you qualify for any insurance discounts.

Labor Day Car Buying Deals

Several major car manufacturers are offering deals on their products this Labor Day:

  • 2022 Ram 1500 - $6,000 cash-back on select trim levels and in select regions. 0% financing on most trim levels
  • 2022 Hyundai Venue - $169 per month for 36 months. $3,199 due at signing
  • 2023 Nissan Leaf - 1.9% financing for 72 months. Qualifies for $7,500 Federal Electric Car Tax Credit
  • 2023 Acura Integra - $399 per month for 36 months. $2,999 due at signing
  • 2022 Toyota RAV4 Hybrid - 1.9% financing for 48 months
  • 2023 Kia Soul - $239 per month for 36 months. $2,799 due at signing
  • 2022 Jeep Gladiator - 0% financing for 72 months
  • 2022 Nissan Sentra - $259 per month for 36 months. $3,184 due at signing
  • 2022 Dodge Challenger - 0% financing for 72 months
  • 2023 Honda HR-V - $249 per month for 36 months. $3,799 due at signing
  • 2022 Honda Passport - 1.9% financing for 48 months
  • 2022 Kia K5 - $259 per month for 36 months. $3,523 due at signing

Information comes from U.S. News

Some car manufacturers are offering 0% financing for six years. Others are offering cash-back incentives up to $6,000.

Insuring a New Car

Insuring a new car is easy and can be done before you take the car off the lot. All you have to do is contact your insurance provider and supply them with the VIN, year, make and model of your new car. In some cases, insurance companies offer a grace period for new vehicles (usually two to 30 days), so you may not even need a new policy right away if they have an existing policy. All you have to do is show the dealer proof of insurance and they’ll hand you the keys.

Affordable Insurance Quotes for New Car

Insuring a Used Car When Buying

The process of insuring a used car is pretty much the same as insuring a new car. All you have to do is contact your insurance provider and supply them with the VIN, year, make and model of your new car. In some cases, insurance companies offer a grace period for new vehicles (usually two to 30 days), so you may not even need a new policy right away if you have an existing policy.  If you’re buying through a private seller, make sure you get the title after the sale. This document shows that ownership has been transferred to you. You may also want to get a bill of sale for your records.

How To Get the Best Deal on Insurance for Your New Car

Below are actions you can take to help bring down the cost of your insurance.

Shop Around

One of the simplest ways to save on auto coverage is to shop around. Rates will differ from one insurance company to another, so get quotes from multiple companies and see which one gives you the best value for the coverage you need.

Take Advantage of Discounts

Automotive discounts are one of the easiest ways to lower your insurance rates. Here are some common ones:

  • Anti-theft discount - A discount may be given to you if your vehicle has anti-theft devices installed.
  • Automatic payment discount - If you have your premium payment setup on autopay, you are eligible for this discount.
  • Bundling insurance discount - Bundling your car and your home coverage with the same provider will save you money in most cases.
  • Defensive driving discount - You may get a discount for attending a defensive driving course.
  • Distant student discount - Some insurance carriers offer auto discounts to students attending college at least 100 miles away.
  • Good driver discount - A clean driving record can be rewarded with a discount on auto insurance.
  • Good student discount - If you are a student with good grades, you may qualify for a car insurance discount. Requirements vary from one provider to another.
  • Low-mileage discount - Your insurance company may give you a discount for driving less.
  • Loyalty discount - Your insurance provider may give you a discount if you’ve stayed with them for years. The time frame varies by company.
  • Military/Veteran discount - Discounts are often available if you are either active-duty military or a veteran.
  • Multi-car discount - Many insurance companies offer discounts if you have multiple cars listed on your policy.
  • New vehicle discount - A new vehicle can qualify for a discount depending on your provider.
  • Organizational discount - If you belong to a certain club, employer, university or other organization, you may qualify for an auto discount.
  • Paperless discount -  You may get a discount if you opt-in for paperless mail from your carrier.
  • Pay-in-full discount - You can get a discount on your rates if you pay your yearly premium in full.
  • Profession-based discount - Insurance companies offer discounts for certain professions. See if yours is on the list.
  • Telematics discount - You could get a discount if you allow your driving data to be collected by your carrier. Good behavior is tracked and could be rewarded with a discount.

Insuring a new car is easy and can be done before you take the car off the lot.

Raise Your Deductible

The premium amount you pay for coverage is based in part on your deductible. The higher the deductible, the lower the premium. If you’re a safe driver that doesn’t have to rely on auto insurance too much, opt for a higher deductible. This will lower your monthly payments. However, your out-of-pocket costs will be higher if you are in an accident.

How Much Insurance You Will Need

Liability coverage is required in most states with the limits differing from one location to another. The breakdown below shows the amount of coverage needed to operate a vehicle on the open road in each state:

State

Bodily Injury Per Person/Per Accident

Property Damage

Alabama

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Alaska

  • $50,000 for bodily injury per person
  • $100,000 for bodily injury per accident
  • $25,000 property damage

Arizona

  • $15,000 for bodily injury per person
  • $30,000 for bodily injury per accident
  • $10,000 property damage

Arkansas

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

California

  • $15,000 for bodily injury per person
  • $30,000 for bodily injury per accident
  • $5,000 property damage

Colorado

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $15,000 property damage

Connecticut

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $20,000 property damage

Delaware

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 property damage

District of Columbia

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 property damage

Florida

  • $10,000 for bodily injury per person
  • $20,000 for bodily injury per accident
  • $10,000 property damage

Georgia

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Hawaii

  • $20,000 for bodily injury per person
  • $40,000 for bodily injury per accident
  • $10,000 property damage

Idaho

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $15,000 property damage

Illinois

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $20,000 property damage

Indiana

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Iowa

  • $20,000 for bodily injury per person
  • $40,000 for bodily injury per accident
  • $15,000 property damage

Kansas

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Kentucky

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Louisiana

  • $15,000 for bodily injury per person
  • $30,000 for bodily injury per accident
  • $25,000 property damage

Maine

  • $50,000 for bodily injury per person
  • $100,000 for bodily injury per accident
  • $25,000 property damage

Maryland

  • $30,000 for bodily injury per person
  • $60,000 for bodily injury per accident
  • $15,000 property damage

Massachusetts

  • $20,000 for bodily injury per person
  • $40,000 for bodily injury per accident
  • $5,000 property damage

Michigan

  • $20,000 for bodily injury per person
  • $40,000 for bodily injury per accident
  • $10,000 property damage

Minnesota

  • $30,000 for bodily injury per person
  • $60,000 for bodily injury per accident
  • $10,000 property damage

Mississippi

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Missouri

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Montana

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $20,000 property damage

Nebraska

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Nevada

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

New Hampshire*

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

New Jersey

  • $15,000 for bodily injury per person
  • $30,000 for bodily injury per accident
  • $5,000 property damage

New Mexico

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 property damage

New York

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 property damage

North Carolina

  • $30,000 for bodily injury per person
  • $60,000 for bodily injury per accident
  • $25,000 property damage

North Dakota

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Ohio

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Oklahoma

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Oregon

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $20,000 property damage

Pennsylvania

  • $15,000 for bodily injury per person
  • $30,000 for bodily injury per accident
  • $5,000 property damage

Rhode Island

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

South Carolina

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

South Dakota

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Tennessee

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $15,000 property damage

Texas

  • $30,000 for bodily injury per person
  • $60,000 for bodily injury per accident
  • $25,000 property damage

Utah

  • $25,000 for bodily injury per person
  • $65,000 for bodily injury per accident
  • $15,000 property damage

Vermont

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 property damage

Virginia**

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $20,000 property damage

Washington

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 property damage

West Virginia

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $25,000 property damage

Wisconsin

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 property damage

Wyoming

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $20,000 property damage

*Financial responsibility only. Insurance is not compulsory.

**Must pay Uninsured Motorists Vehicle (UMV) fee to the state Department of Motor, otherwise, insurance must be purchased.

Data used was collected by the Insurance Information Institute.

Affordable Insurance Quotes for New Car

Car Buying FAQs

Is Labor Day a good time to buy a car?

Labor Day is a good time to shop for cars because the new models begin to roll out on showroom floors. This usually means the prices on earlier models start to go down.

Will a new car affect my car insurance?

Your rates will likely change when you purchase a new car. If the car is expensive, your rates will probably rise due to its value.

Will my insurance cover my new car?

Your insurance will cover your new car after you’ve purchased it for a brief period of time, usually two to 30 days, depending on the carrier.

Key Takeaways

  • Your current insurance plan will cover your new car when you first drive it off the lot, typically for two to 30 days.
  • You’ll need to show proof of insurance before a dealer will let you leave with your new car.
  • Get the title when buying a car from a private seller. This shows ownership has been transferred to you.
  • Liability coverage is required in most states before drivers can be on the open road.

If your car is new, used or old, SmartFinancial has the coverage you need. Enter your zip code below or call 855.214.2291 to receive free auto insurance quotes from agents in your area offering the lowest rates.

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