When planning to buy a car, it is advisable to have a budget for car insurance as a subsequent expense. As a car owner, you will soon realize that paying for auto insurance is a sizeable expense that requires you to be prepared financially. Car insurance is a necessity and is required by law in most states. If you are paying for the new car with a loan, you need to prove that you have auto insurance before driving off in your new car from the dealer. There are ways to pay lower rates on your car insurance, and one of them is to get cheap auto insurance that will save you money.