Buying a new car is exciting — the smell, the shine, the peace of mind knowing it’s reliable. However, before you hit the road, one of the most important steps is ensuring your new vehicle is properly insured. Let’s go over what kind of coverage a new car owner needs for a new car, and which auto insurance endorsements can make a difference in protecting that investment.
Why Proper Coverage Matters for a New Car Owner
As many new car owners know, a brand-new car loses value the moment it’s driven off the lot. If an accident happens early on into ownership, your regular auto policy might not cover the full cost of replacing it. That’s why having the right coverage and endorsements is so important — they can fill the gaps standard insurance may leave behind.
The Basics: Coverage Every New Car Owner Needs
Before adding endorsements, make sure you have these core types of coverage:
- Comprehensive Coverage – Pays for damage from non-collision events like theft, vandalism, fire, or storms.
- Collision Coverage – Covers repairs (or replacement) if you hit another car or object.
- Liability Coverage – Protects you if you cause injury or property damage to others.
- Uninsured/Underinsured Motorist Coverage – Helps if another driver causes an accident and doesn’t have enough insurance.
These coverages are the foundation of a solid auto policy — but with a new car, you’ll want to go beyond the basics.
Auto Insurance Endorsements We Recommend for a New Car
1. Gap Insurance (Guaranteed Asset Protection)
Why we recommend it:
New cars depreciate quickly — sometimes 20% in the first year. If your car is totaled, your insurance might only pay its actual cash value, which could be less than what you still owe on your loan or lease.
Gap coverage pays the difference, so you’re not stuck paying off a car you no longer have.
👉 Best for: anyone who financed or leased their new car.
2. New Car Replacement Coverage
Why we recommend it:
If your car is totaled within its first year (or certain mileage limits), new car replacement coverage replaces it with a brand-new vehicle of the same make and model — not just the depreciated value. Not all carrier offer this, so let your Cincinnatus Advisor know if this is a priority for you.
👉 Best for: drivers who want full peace of mind during the first few years of ownership.
3. Rental Reimbursement Coverage
Why we recommend it:
If your car is in the shop after an accident, rental reimbursement helps pay for a rental car while yours is being repaired.
👉 Best for: anyone who relies on their vehicle for daily transportation.
4. Roadside Assistance
Why you need it:
Flat tires, dead batteries, and lockouts happen — even with new cars. Roadside assistance ensures help is just a phone call away, often at a lower cost than third-party services.
👉 Best for: new car owners who want convenience and peace of mind.
5. Accident Forgiveness
Why you need it:
A single accident can cause your rates to spike. With accident forgiveness, your insurer won’t raise your premium after your first at-fault accident.
👉 Best for: good drivers who want to protect their clean driving record.
Tips for Saving on New Car Insurance
- Bundle your policies. Combine auto and home insurance to earn a multi-policy discount.
- Ask about safety discounts. Many insurers reward new vehicles equipped with features like anti-lock brakes, airbags, and driver-assist technology.
- Compare quotes. Different companies value new cars differently — you can rely on Cincinnatus Insurance to shop it around so you don’t have to! We are appointed with 10+ carriers in the insurance market and can point you in the right direction.
Final Thoughts
When insuring a new car, think beyond the minimum coverage. Endorsements like gap insurance or new car replacement can protect you from expensive surprises down the road.
It’s always worth reviewing your options with a trusted insurance agent like a Cincinnatus team member. We can tailor a policy to fit your budget and driving habits — so your new car (and your finances) stay protected from day one.