When you plan to buy a new car there are many things which cross your mind & insurance is one of them. People often question whether they need insurance with their car or not. Well, the answer is yes, you need to cover your license when you will buy a new car. However, there are many car insurance options from which you can choose from when you visit to buy a new car. Let us dive deeper and look at everything about car insurance.
When Do You Need Insurance to Buy a Car?
You must have auto insurance to drive any vehicle off the dealership lot after buying it. It is because even when you buy the car in full cash at the moment, you won’t be able to drive it home without proof of insurance. So, you need to get the insurance as soon as you buy the new car, in fact it is the best time to do it.
How to Get Auto Insurance Without a Car
If you have never bought a vehicle before in your life then it can be tricky for you to understand this. Because you are probably thinking how you can get car insurance without having a car. But yes you can get it. However, you need to share some information about the vehicle like when you intend to buy a new car. You also need to share the information like which make and model in which you are interested in and how many miles you expect to drive it in a year.
If the car you are interested in buying has different engine sizes or comes in two or four wheel drive then you’ll want to be sure which one you’re buying as the rates may differ. But if you are certain you are buying a particular vehicle then you can ask the dealer for the VIN and your insurance policy in advance.
Can you Drive a Newly Bought Car Without Insurance?
If you do not have your insurance policy covered yet, then we suggest you to not drive the car to your home. It is because most of the states require a minimum amount of auto insurance coverage to drive. If you are found driving your new car without insurance then you need to pay hefty & severe consequences along with penalties, including your license suspended.
If you met an accident while driving without insurance, then you could be in even more trouble as the situation is not with you. There are a few states where insurance is not mandatory at the moment but still you will be financially responsible for any injuries or vehicle damage if the accident was your fault. We suggest you have insurance at the same moment if you want to avoid any insurance gap and the lapse in coverage.
What is Non-Owner Car Insurance?
Often people opt for non owners policy to avoid having a gap in their insurance coverage history. For instance, you have sold your old car and don’t plan on buying another one for another few months or even longer than non owner insurance can help you with it.
It also protects you from any case of an accident or damage that happens when you drive a car that you don’t own. The average cost of such a non-owner insurance policy is around $500 or less per year. You can find many top companies with this insurance policy including State Farm & Geico.
When Should One Get Non-Insurance Auto Insurance?
You don’t need to have any car insurance if you don’t own a vehicle, but if you borrow a vehicle regularly then you should have this type of insurance. And if you’ve had insurance before and are now temporarily without a car, you should get this type of insurance to avoid any lapse in your coverage history.
Can Car Insurance Be Bought the Same Day as Buying a Car?
As we have mentioned earlier, getting insurance is very quick & easy. All you need to do is follow the below steps.
- Take all the information like who will be driving, including birthdays, license number and VIN with you when you visit to buy a car, where you will already find most of this information.
- Figure out how much coverage you will need for your vehicles & yourself.
- Research for the top insurance providing companies and review everyone of them before finalising the insurance company.
- Contact three or four car insurance companies to know what they will offer.
Will a Dealership Ask for Proof of Insurance?
Yes, the dealers will ask for proof of insurance and that is one of the reasons you need to get policy in place before buying a new or used car. If you have recently bought the insurance but doesn’t have papers for it. Then you can get it fax from the insurance company to buy a new car. However, if you don’t buy the insurance by yourself then the dealers will buy it for you and charge you for it at usually a much higher rate.