One of the things you must do when purchasing a new car is to purchase vehicle insurance. Most states require auto insurance to get behind the wheel of a new vehicle, whether you buy from a dealer or a private seller. Fortunately, there are several ways to secure coverage.
Do I have to get insurance to buy a car?
Once you purchase a new car, you’ll need insurance to legally drive it in most places in the United States. Even if it’s just to drive home. However, it is not always necessary to have valid car insurance before purchasing a car. In fact, it’s difficult to get insurance unless you know exactly what car you’re buying. When you apply for car insurance, your insurance company will need vehicle-specific information such as your VIN and mileage.
Although it is technically possible to buy a car without insurance, you will need to show proof of insurance before you can legally take your car out of the parking lot. If you buy a car at a dealership, the salesperson will likely ask for proof of insurance for the vehicle during the transaction. Without active insurance, you are not legally allowed to own the car, even if you paid cash.
Does a new car require new insurance?
Buying a new car doesn’t necessarily require you to get new insurance. If you already have car insurance, you may be able to add your new vehicle to your existing policy. You can do this by contacting your insurance agent or company representative, or through your insurance company’s mobile app or online customer portal. These can be done while you are waiting at the dealership.
Additionally, your existing insurance may have a grace period. This grace period automatically covers you for a certain period of time until you officially add your new car to your insurance policy. Car insurance grace periods are typically up to 30 days, but before you visit the dealership, check with your agent how long you have to complete this process to find out how long your car will be covered .
It’s important to note that if you’re relying on a grace period to cover your new car, you may run into problems because only your current coverage will be extended. For example, if you replace an old car with liability-only coverage, the new car will also have liability-only coverage until it is officially added to your policy. This means that if you cause an accident due to negligence within the grace period, you will not be compensated for damage to your new car. For this reason, many insurance experts recommend avoiding relying on grace periods to protect your new car and instead adding on your vehicle before you drive it. Additionally, you should adjust the compensation level as needed.
If you do not already have car insurance, you will need to purchase new insurance. Most auto insurance companies make it easy to apply for coverage or buy new insurance online or through mobile apps.
How do I get insurance for a new car?
Getting insurance for a new car is relatively easy, especially if you take the time to gather some information before applying for insurance. To add coverage to your new car, you’ll need to:
- Collect vehicle information. When you get a new policy or add a car to an existing policy, your agent will collect your VIN, vehicle usage information, registered owner information, lien holder or leasing company, and current odometer information. Ask for numbers.
- Please request the correct effective date. In order to legally take your car off the lot, your dealer will require coverage to start from the day you purchase the car. Some companies will automatically provide same-day coverage, while others will show the default effective date as the day after your request. It is helpful to specify a start date for your new coverage to avoid unnecessary phone calls to your insurance company.
- Ask for your ID card and binder. In most cases, you will need to provide proof of insurance to the dealer (usually in the form of a binder). Most auto insurance companies or agents can provide these documents in just a few minutes by emailing them.
It may be helpful to secure coverage for your new car before you pick it up at a dealership or private seller. Purchasing a new car can take all day, but getting new car coverage in advance will make the process smoother. If the deal falls through, all you have to do is contact your car insurance company and ask them to reverse the change.
What if I don’t buy from a dealer?
Selling private cars is becoming increasingly popular as drivers can often find much better prices than dealers offer and can get faster deals. Even if you buy a car from a private seller, you will still need car insurance. The only difference is that the seller has no obligation to check your coverage before you drive the car.
There is a high possibility that the coverage period of your current car insurance contract will be extended through the grace period, even if the car is sold privately. However, if you don’t already have insurance, you’ll need to do so before driving your car home.
Although the seller may not ask you to provide proof of coverage, driving without insurance leaves you with legal and financial ramifications. If you don’t have the right insurance, you could be pulled over on your way home, which can lead to a variety of serious consequences.
