Do You Need Insurance to Buy a Car?

It is exciting to go for a new car shopping. But do you need insurance to buy a car? You should know the answer to this question before setting off. Often people get carried away and end up buying an automobile before the day is over. Things can get complicated when the purchase is over the weekend and your agent is closed. However, it doesn’t matter what day or time to buy auto insurance online. So, you should probably get car insurance quotes before buying car.

How to Get Car Insurance before Buying a Car

There is nothing stopping you to get insurance quotes for a car you like to buy. As long as you can provide the required vehicle details to get a quote you should be alright. Besides, it would be meaningless to find out after you buy the car that it is too expensive to insure. Insurance rates changes considerably depending on the vehicle you own. For example, sports cars can cost twice more to insure than 4 door sedans. This is not something you can ignore easily.

You should get quotations for each auto in your shortlist to see which one is cheaper to insure. If the insurers like a particular vehicle that is probably because it is a safe one to drive and it protects its passengers and drivers better from injuries in case of accidents. It is worth mentioning that young drivers with high risk cars would cost a lot of money to insure. Sometimes, it may not even be possible to insure a young driver with a sports car unless you pay truck load of money.

Do I Need Insurance to Buy a Car?

The answer to this question depends on your circumstances, insurer and state. If you meet following conditions you may not need to insure your new auto urgently. You may be able to buy and drive it home that allows you to make necessary arrangements in a timely manner. How long do you have to get car insurance for it depends on what grace period is allowed by your policy. So, when do you need car insurance to buy a car?

Have Auto Insurance: Your new car may be automatically insured for 3 – 4 days if you already have an insurance policy in place for another vehicle. You should read our other post on the subject titled; Is my New Car Automatically Covered by Insurance? It is important to point out that your current auto insurance policy would only provide the same coverage you have for the car you just bought. In other words, if you only have liability only auto insurance your new auto will have this cover and not have Collision and Comprehensive.

Pay Cash: You may need to pay cash if you want to use your existing insurance coverage for another vehicle for the time being. If you are getting a loan, it is unlikely that the lender would release the funds until the vehicle is insured properly for Collision, Comprehensive and GAP auto insurance Coverage.

Buying a New Car Insurance Grace Period: Most insurers offer temporary auto insurance coverage for a new car automatically. Usually, the coverage would be for only 3 – 4 days until you can make alternative arrangements. But you may have as much as 30 days to arrange insurance for a newly purchased automobile according to your state rules or depending on your policy. So, you should check the grace period for including a new car temporarily in your existing insurance policy to make sure you are alright.

Do You Need Proof of Insurance to Buy a Car?

It is probably a good idea to take your current insurance policy as proof of insurance to show if needed. Your dealer may not let you take the car unless they see proof of insurance. In some states, dealers are required to check that there is a coverage in place before they hand over the keys to the new owners. It would be disappointing not to be able to drive your new ride after you pay the money.

Even so, you should not rush into buying a policy quickly so that you can drive immediately. Be assured that getting insurance before buying a car only takes an hour or so online. This time is even shorter if you have already done your research. That is why it is important for you to do your homework and check possible insurance policies and costs for your new car. Once you complete the purchase you can consider your options of adding new car to insurance or buying another policy for it.

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