Are There Special Car Insurance Coverage Options for New Cars?

Last Updated on August 5, 2021

Getting a new car can be a great decision for a number of reasons. In particular, a new car can end up costing you a lot less to run on a daily basis. While the car itself costs more, it also means you won’t have as much tax to pay (especially if your car is highly efficient), you won’t have to pay for MOTs for the first few years (depending on the laws in your area) and – with any luck – you won’t have to pay for expensive repairs, car insurance coverage

Getting a new car keeps things nice and simple: it means that you can rely on your vehicle not to break down in the middle of a long journey, it means you should still be under warranty and it means parts will be easy to come by. It’s a great feeling being able to put your trust in your car and being able to assume that it isn’t going to cost you an arm and a leg just to maintain.

But what about insurance? Will that cost you less or more? Let’s take a look…

Insuring a New Car

When you insure a new car, it can actually impact your costs in multiple ways. On the one hand, it is very possible that your car insurance will go up, assuming you have fully comprehensive insurance.

That, of course, is due to the fact that your insurance is going to pay out for any repairs that need to be made to your vehicle in the case of a crash. As such, if your vehicle has an accident, then it will cost your insurance company more the greater the value of the car. Seeing as a new car tends to be of greater value than an old car, this means you can end up spending more on your premiums if you have a new car.

But on the other hand, if you have a new car, then that may mean that your vehicle is less likely to be damaged in any way. If your new car is less likely to break down for instance, then that can mean that breakdown cover is cheaper. If your car has parking assist, then you will be able to park more easily without bumping into other cars. You can even get cars that warn you about whether or not it’s safe to move into the left or right lane.

And on top of all that, a new car can also sometimes be seen as a sign that the driver is perhaps older, perhaps more responsible and therefore perhaps less likely to have an accident. In fact, it can even be taken as a sign that the owner is going to drive more carefully to protect their investment.

Different insurance companies might view a new car in different ways, while one might see it as a more expensive asset to insure, others might see it as a promising sign that you are less likely to have an accident. When you take out insurance, it is thus very important to compare quotes from lots of different companies after you have entered your details and this will help you to find the best deal for your specific vehicle.

Special Coverage Options for New Cars

You also need to see if there are potentially special coverage options for your new car. That is to say, that even if you are happy with the value of your car insurance, you might decide you want to pay more to get extra features.

For example, some insurance companies will offer to replace a car with one of the same make and model at full market value. This is a useful feature because it means you will retain the extra value that comes from having a new car.

If you bought a new car, then you might have bought it partly to get that ‘new car smell’ and partly so that your vehicle would retain its value slightly better when you came to sell it. If you have an accident and have to get a new paint job, or a new door installed – or whatever else – then this can end up negatively impacting that extra value and thereby negating the reason you paid more for your vehicle.

By taking out special coverage, you can conversely ensure that your vehicle will retain its full value and that means that you sell it more easily after a few years and know that the car is going to run as well as possible.

Different car insurance companies will offer different rates for these deals and features and will offer different terms and conditions. For example, most cars will only classify as ‘new’ up to a certain point. A common example is that a car might only be applicable for special coverage if it has done less than 24,000 miles and if it is less than 2 years old.

There are additional terms and conditions to look for here too. Sometimes a car will be repaired rather than replaced but in this case, the special coverage means that your car will be repaired using only new parts. Whether or not this is worth it to you will depend on how much extra you were willing to pay for your new car.

Note as well that there are other special insurance options for different types of cars. You might take out special supplementary insurance for instance in order to pay for custom bodywork or additional features like a car stereo. Likewise, you may need to take out additional, specialist insurance if your vehicle is classified as a classic or collectible.

The Right Insurance for the Right Car

Ultimately, insurance policies will vary greatly depending on the driver, the vehicle and your preferences in terms of cover. It’s up to you to shop around and to consider various different types of coverage. And that might mean new car cover, supplementary cover or something different entirely. Always compare rates and always provide as much information as possible!

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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