Doing it moments before or after is just a technicality. The bottom line is that it must be insured before it can be driven out of the parking lot. This doesn’t always mean that you have to get a policy immediately, especially if you have one already that may provide coverage for a new auto for few days. You need to consider current arrangements and check the position in relation to provisions for vehicles you own. Remember that you can change the auto in a policy you already have, depending on what happens to the old one, or add it on as a second car if it is allowed. Various scenarios are considered below to answer questions.
Do I Need Insurance before Purchasing an Auto?
There may be circumstances in which you may have to get your ducks in a row before you can get the keys. It is best to check when you do and don’t need to cover a car you are about to buy by following the link. A few states’ laws require dealerships to check the existence of coverage before they let excited owners have the keys.
In summary, you need insurance for a car you purchased before you can drive, unless you have another policy that covers it for 3 – 4 days automatically until you decide how to address it. You are responsible for the vehicle the moment you seal the deal and therefore you should make the necessary arrangements momentarily.
Do you buy insurance before or after the car? Technically, you must own the car to be able to arrange coverage for it because you must have a legitimate claim over it. Also, many states would only allow the owner to insure a private automobile. However, what counts is the intentions and doesn’t really matter if a policy or car comes first or second, if it is only matter of time to complete the deal.
However, you may have to get a new policy with Comprehensive, Collision and GAP when you are getting an auto loan, even though you may have a liability only for another car. The lender will not release the funds until they have confirmation that the vehicle is protected as they want. When they are lending the money for it they can dictate the terms.
The good news is you can get quotes for a car you like if you know enough about it like its VIN number or other details. Then, you know exactly how much the premium for that particular car will be. If you are happy with everything you can take the quote just after or before completing the vehicle deal.
Do I Need Insurance to Buy a Used Auto?
Requirements are the same and above terms apply here too. The only thing that may chance is the proof requirements. Used car dealerships will probably need to see proof before they let you drive it because of the state rules.
It is unlikely that a private seller of a second hand vehicle is bothered with it. However, this doesn’t make it all right to operate it without at least liability component. It is up to you to make sure any vehicle you own comply with the minimum liability requirements before it can be taken on the roads. You may be able to ask the current owner to bring it up to your doorstep before you settle if you are not sure about it and don’t want to miss on a good deal.
Can I Drive with Dealership Insurance until Home?
Unless they delivers it to the doorstep their policy doesn’t help you. You wouldn’t be covered by it if you drive home once they sell it to you.
The best thing to do is to check and line up a competitive carrier. Then, it would be easier to give them a call and place it on risk. Otherwise, you may be too excited and keen to drive it that you may accept an unsatisfactory policy in a hurry. Generally, anything you arranged in those sort of circumstances are too expensive and not suitable. Unfortunately, salesmen may just be hoping and waiting that you are unprepared and clueless so that they can get someone sell you a policy and they can get their cut from it. That is why it is important to take the time and choose well.
You have to have at least mandatory coverage for any vehicle you own, unless it is locked up in a private garage. But, you would probably want it to be protected fully with Collision, Comprehensive and Uninsured Motorist Coverage since it is a new car (or a used auto of some value). Check all the options beforehand.
This may affect the final decision as to which one to go for when it is a close call. Premiums cost more or less depending on the vehicle’s safety ratings, engine power, value and theft statistics. There you should always get a few quotes to make sure you will not have any surprises.