Do You Need Insurance to Buy a Car?

It is exciting to start test-driving. But do you need to sort out insurance before you can buy an automobile? You should know the answer to this question before setting off. Often people get carried away and end up putting the money down for it before the day is over. Things can get complicated when it is the weekend and the agent is closed. However, it doesn’t matter what day or time online. Remember, you can get quotes to find out the costs before committing to it. Let’s get to it and try to answer a few questions and deal with specific circumstances.

How to Get Insurance before Purchasing a Car

There is nothing stopping you to get quotes for a car you are considering. As long as you can provide its details you should be all right. Besides, it would be meaningless to find out afterwards that it is too expensive to insure. Rates changes considerably depending on the vehicle you own. For example, sports cars can cost twice more than 4 door sedans. This is not something you can ignore easily.

You should get quotations for each one in the shortlist to see which one has cheaper premium. If carriers like a particular vehicle that is probably because it is safer and protects its passengers and drivers better from injuries in case of accidents. It is worth mentioning that youngsters with high risk cars would attract pretty high premiums. Sometimes, it may not even be possible to cover a young driver with a sports car unless you pay truckload of money.

Do I Need Insurance to Buy an Automobile?

The answer to this question depends on circumstances, company and state. If you meet following conditions you may not need to deal with urgently. You may be able to take it home that allows you to make necessary arrangements in a timely manner.

Have Insurance: Latest addition may be automatically covered for 3 – 4 days if you already have a policy in place for another vehicle. It is important to point out that the current company would only provide the same coverage you have for the one you just bought. In other words, if you have liability only latest capture will have this and not have Collision and Comprehensive. Depending on its value this may be a problem. In any case, you have to be extra careful not to dent it from day one.

Pay Cash: You may need to pay cash if you want to use the existing policy for another vehicle for the time being. If you are getting a loan, it is unlikely that the lender would release the funds until Collision and Comprehensive protections are in place.

Buying a New Auto Insurance Grace Period: Most companies offer temporary coverage for a just purchased car automatically. Usually, it would be for only 3 – 4 days until you can make alternative arrangements. But you may have as much as 30 days to sort it out, according to state rules or depending on the policy. So, you should check the grace period for including a new car temporarily on a current plan to know how much time you have got.

Do You Need Proof of Insurance to Purchase an Auto?

It is probably a good idea to take the current schedule as proof to show if needed. The dealer may not let you take it unless they see this proof. In some states, dealers are required to check this before they hand over the keys to owners. It would be disappointing not to be able to drive it after you pay the money.

Even so, you should not rush into it quickly. Be assured that it doesn’t take long to arrange it online so that you can drive off the lot. This time is even shorter if you have already done the research. That is why it is important for you to do your homework and check all the options. Once you complete the paperwork you can consider the options of adding a new car to existing policy or having a separate one for it.

Just remember one thing that competitiveness of a carrier can change when the type of vehicle is considerably altered. You may not have a problem replacing a sedan with a minivan but going from minivan to coupe can increase premiums with one while others may not be concerned with it. You know what to do when you get such a surprise; shop around.

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