Labor Day Car Buying Insurance Guide
 Written by Derek San Filippo Derek San FilippoDerek has over 10 years of experience writing web content for a variety of online publications. His pieces range from fi... Read more |  Edited by Fran MajidiFran MajidiFran Majidi manages content on SmartFinancial's website. She's had nearly a decade's worth of experience writing about i... Read more |
Editorial Standards SmartFinancial Offers Unbiased, Fact-based Information. Our fact-checked articles are intended to educate insurance shoppers so they can make the right buying decisions. Learn More
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
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.
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.
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 |
|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia** |
|
|
|
|
|
|
|
|
|
|
|
|
|
*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.
|
Key Takeaways
|
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.
- Insurance quotes /
- Auto /
- Labor Day Car Buying Insurance Guide
Derek has over 10 years of experience writing web content for a variety of online publications. His pieces range from finances and entertainment to religion and philosophy. For the past three years, Derek has focused on writing financial literacy articles for credit unions throughout the country. He prides himself on being able to take complex topics and make them accessible to the general public.
Get a Free Auto Insurance Quote Online Now.
More on Auto Insurance
Looking for Auto Insurance?
Compare rates from dozens of companies in less than 3 minutes.