Getting a New Car for Christmas? Be Sure to Do This First

The holiday season can be a great time to buy a new vehicle -- and that's not just what car companies would have people believe with their Christmas ads. Most dealers have year-end sales events with special bargains and often slash prices in an effort to clear out old inventory and make room for the new.

Those who are buying a new vehicle, though, should make sure to do one unexpected task first before writing a check out of their checking account or securing a car loan and signing on the dotted line to become a car's new owner.

Do this before purchasing a new car for Christmas

Anyone who is thinking about purchasing a new car for the holidays -- or really at any time during the year -- needs to get a quote from an auto insurance company for any vehicle model they're interested in buying.

It may seem as if getting a car insurance quote on a vehicle that someone doesn't yet own is a strange thing to do. But there's a simple reason why it really matters: There's a huge difference in how much it can cost to insure different vehicles.

In fact, while a 40-year-old married female homeowner in Florida would pay $1,404.28 for a six-month policy to insure a 2024 BMW X-5 (a midsize SUV) with a major carrier, a different midsize SUV (a Nissan Rogue) would have a six-month premium of $1,282.31 for the same coverage. That's a difference of $121.97 over six months or almost $250 per year.

Now, some drivers may decide they would rather buy the vehicle they've been dreaming of even if it means paying thousands of dollars more in insurance costs over a decade. But it's important to realize that there can be a dramatic difference in insurance costs over time and to go in with both eyes open.

How to get insurance quotes before buying a car

Fortunately, it is really easy to get insurance quotes before buying a new car for the holiday season. Most insurers provide quotes online and don't require proof of ownership in order to find out the premium price for insuring different vehicles.

To get an idea of what it might cost to insure different vehicles, pick a big-name insurer or two and visit their websites to request a quote. It will be necessary to provide some basic details to get an accurate one, including:

• The names and addresses of all drivers in the household
• The vehicle year, make, and model of the cars that could potentially be purchased
• The driving record of individuals in the household
• The age when each person in the household who will be driving the vehicle obtained their driver's license
• Whether the drivers of the car own or rent their home
• The marital status of the new car's owner

Be sure to do this with each vehicle under consideration for purchase to make sure insurance costs are clear upfront before going forward with the sale.