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Do You Need Car Insurance Before You Buy A Car?

15.04.20
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There are so many things for people to think about when purchasing an automobile. What type of car are you looking to purchase? How many seats are best for your situation? Do I have enough budgeted out to make payments on the vehicle I want? What color should my vehicle be? All of these are fantastic questions that come to mind when people are looking to buy a vehicle. Another question that often comes up, and sometimes not early enough in the process, is whether or not they need to purchase an insurance plan before they buy a vehicle. Also, getting the right amount of car insurance for their situation is essential. Automobile insurance is not only required by law, but it is also one of the larger expenses that people have in terms of vehicle ownership.

Do I Need Insurance Before I Buy A Car?

To purchase automobile insurance, you will need to buy a car. You will not be able to get an accurate quote on car insurance without having the Vehicle Identification Number on the vehicle or if you do not have other pertinent information about the make, year, and model of the vehicle. In most situations, it is recommended to have a valid car insurance policy; however, before you start driving the vehicle after you purchase it. Some auto insurance companies allow you to drive the vehicle you have purchased from where you bought it to where will be stored while being covered under an active car insurance policy that you already have.

There are some situations where you may choose to get automobile insurance before you purchase a car.

If You Have An Old Policy

Some car insurance plans provide limited amounts of coverage for specified periods of time if you purchase a new vehicle. Your old policy will need to be active in this situation, and you will want to be aware of the requirements your car insurance provider has regarding this. Contacting them is the best way to get the most updated information.

If You Don’t Have Any Auto Insurance

If you do not have any automobile insurance, you will not be able to legally drive a vehicle you have just purchased. Not only that but if your vehicle is damaged in a car accident, you will not have the ability to file a claim and could be held accountable for thousands of dollars that you would not otherwise be liable for if you had a valid policy.

If You Buy A Replacement Vehicle

If you are purchasing a new vehicle, your old insurance policy can be transferred over to the new vehicle online or with a phone call. If the new vehicles auto insurance is more than what you are currently paying, you will have a balance due. If your new vehicle has auto insurance that is less than which you are currently paying, you could be due a partial refund.

If You Buy An Additional Vehicle

It is often easy to add an additional vehicle onto your automobile insurance plan if you purchase a second, third, or additional vehicle. Some automobile insurance providers offer discounts for car policies that have more than one vehicle on them. Make sure to inquire about this when adding your vehicle. In addition, use DriverInsurance to find the best rates for car insurance available in your area. By comparing quotes from multiple car insurance companies when purchasing an additional vehicle, you can save more money overall.

Paying Cash For A Vehicle & Driving It Home

If you are paying cash for a vehicle, particularly from a private owner or dealership, multiple situations can occur. Some people choose to purchase a car insurance plan beforehand and then drive the vehicle home. These people will be covered with an auto insurance plan but could be stuck with that plan if they do not and up purchasing the vehicle.

In some cases, an auto insurance company will sell you a policy immediately after purchasing a vehicle. This can happen online or over the phone in person. This allows you to prove that you have car insurance if you get pulled over. Others choose to get their vehicle towed by a towing service or a friend, choosing to research the best prices for car insurance at DriverInsurance when they get home.

Unfortunately, some people take the chance of driving the car home without insurance. This is extremely risky and can lead to massive expenses, fines, fees, and more.

Buying A Vehicle On Credit & Driving It Home

People who are financing their vehicle are likely to be required to have insurance in the terms of their contract. Not only is it likely for the minimum required amount of insurance in your state to be purchased, but most financing companies require additional coverage, such as comprehensive insurance coverage and collision insurance coverage. Regardless of which types of coverages you are looking for, DriverInsurance has top rates for plans available in your area.

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