How to Get Car Insurance Before Buying a Car? Do You Need It?

In order to fulfill your insurance obligations, you must first gather some information about the vehicle you plan to purchase. The following information on auto insurance for car buyers includes instructions on how to get car insurance before buying a car.

Know What Type of Vehicle You Plan on Getting
Confirm With the Dealership
Comparison Shop for Insurance Quotes
Choose Your Auto Insurer and Submit An Application

Please read on for more detailed information.

Table of Contents

Can You Get Insurance Without a Car?

You must obtain your own auto insurance coverage if you don’t already have one (either on your own or as a part of a family multi-car policy). Full coverage car insurance is a great choice especially choosing car insurances.

It may seem strange to purchase auto insurance if you don’t currently own a vehicle. However, before you can drive anywhere, you must purchase auto insurance. So, it is possible to obtain insurance without a car, but it will involve a few specific procedures. Before buying a car, follow these steps to obtain auto insurance.

How does car insurance work? The purpose of having auto insurance is to safeguard your finances in the event of an accident. Auto insurance can assist in paying for repairs to your car and medical care for your injuries if a tree falls on your car or you are the victim of a hit-and-run. It also provides liability coverage, in case you are at fault for an accident that causes injury or property damage to others.

How to Get Car Insurance Before Buying a Car？

Know What Type of Vehicle You Plan on Getting

The type of vehicle you intend to purchase should be known to you before you start your research. You must provide specific details in order for your insurer to properly assess risk when applying for auto insurance. Your car insurance rates may vary depending on the type and age of the vehicle you purchase. The information you’ll need includes:

Vehicle make and model (manufacturer and type of car)
VIN
Mileage on the car
Vehicle history report

A simpler car insurance process may result from having this information. In order to avoid any issues, you should purchase car insurance for a new car as soon as possible. Check for What Age Does Car Insurance Go Down?

Confirm With the Dealership

You’ll want to confirm your upcoming purchase with the dealership in order to obtain the necessary information about the vehicle you want to purchase and to obtain auto insurance coverage. Inform them of your intentions to purchase the vehicle so you can gather the necessary information and arrange for adequate insurance in advance.

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How to Get Car Insurance Before Buying a Car Do You Need It — How to Get Car Insurance Before Buying a Car? Do You Need It?

Comparison Shop for Insurance Quotes

It’s time to look for auto insurance coverage after obtaining the knowledge necessary to obtain auto insurance prior to purchasing a vehicle. It’s usually best to compare and evaluate at least three different insurance providers.

You can consider different coverage options, such as liability, comprehensive, and collision. You might have low mileage if you won’t be driving constantly. By choosing pay-per-mile coverage, you could reduce the cost of your auto insurance. Why is Car Insurance So Expensive?

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Choose Your Auto Insurer and Submit An Application

You can choose the insurer and the type of policy you’ll have after comparing auto insurance rates from various providers. Make sure you have the best type of coverage for your needs in addition to the minimum required liability coverage for your state.

Usually, applications are filled out online. Make certain you offer all the necessary details. In just five minutes, Metromile will give you a quote.

Once your application is submitted and accepted, you can pay your car insurance premium and have your coverage go into effect in time for the purchase of the vehicle. Read more: Average Cost of Car Insurance

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Is It Possible to Buy a New Car Without Insurance?

You might wonder if you can purchase a new vehicle, drive it home, then purchase insurance later. You believe it will only last a short time and is not very long. But you need to have auto insurance in order to drive legally.

You want to safeguard both your vehicle and yourself, and states have minimum requirements. If you drive without insurance, you might lose money in the event of an accident. Without insurance, you risk fines and even having your license suspended if you are stopped.

To keep your driving record clean, protect other people, and stay in compliance with the law, you need ongoing auto insurance coverage.

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How Soon After Buying a Car Do You Need Insurance?

As we mentioned above, you should make sure you have car insurance before you take home your new vehicle, even if you have to call your broker from the dealership to give them the final information. However, if you’re purchasing a car while you already have an insurance policy, the rules are a little bit different.

There might be a grace period for new cars if you have an active auto insurance policy. That means that your current car insurance policy automatically extends to cover a new car you buy even before you officially add it to your policy.

If your current car insurance policy includes this coverage, it will be temporary, usually one week to 30 days, after which you must officially add your new car to your current policy or it won’t be covered.

This implies that you will be covered as soon as you leave the dealership and for a few days or weeks after the purchase, but you should notify your auto insurance provider as soon as possible about your new vehicle.

A new car may only be covered by your insurance if it is replacing your current vehicle; it may not be covered if you are adding a new car to your policy while keeping your current one. And the temporary coverage may or may not include comprehensive and collision coverage, depending on what coverage you have in your existing policy.

Make sure your current insurer will provide temporary coverage for your new vehicle before you drive your new car home. If they do, find out how long you have to formally add the vehicle to your policy; if not, make arrangements to do so before you drive the vehicle off the lot.

Questioning how long does GAP insurance last? Maybe you’re curious about your GAP Coverage’s cancellation or refund options. We’ll address all of your GAP Insurance questions in the paragraphs that follow. Read Now!

FAQs

How Do I Get Car Insurance before I Buy My First Car?

Through an insurance company or an independent insurance marketplace like Policygenius, you can obtain auto insurance before you purchase a new vehicle. The rest of your information can still be provided to a broker or agent even if you don’t have your car’s vehicle identification number (VIN), ensuring that your policy is in effect when you buy your new vehicle.

Can You Drive a New Car Without Insurance If You Just Bought It?

Once you have insurance protection for both you and your car, you are able to drive it home but not before.

Can I Get Same-day Insurance?

Yes, getting car insurance isn’t as difficult as it might seem. In fact, it can usually be done in 24 hours. However, it’s wise to shop around and compare prices for auto insurance before choosing a provider.

Do Dealerships Require Proof of Insurance?

Before buying a new car, dealerships typically demand proof of insurance.

Do I Need Insurance to Buy a Car from a Private Seller?

The seller may not request proof of insurance from you when you purchase a used car in a private transaction and take the car and title home with you. But you should still have coverage because it’s against the law to drive without insurance in almost all states, and you might also need to provide proof of coverage when you register your vehicle. Furthermore, if you have an accident on the way home from the purchase, you will still be held financially responsible as if you had owned the vehicle for a long time.

Summary: How to Get Car Insurance Before Buying a Car?

Here’s how to get car insurance before buying a car:

Know What Type of Vehicle You Plan on Getting
Confirm With the Dealership
Comparison Shop for Insurance Quotes
Choose Your Auto Insurer and Submit An Application

If you’re buying a car and don’t already have a policy, you can shop for one ahead of time and make sure it starts the day you take your new car home

Even without a VIN, you can make sure you’re ready to go with a policy so you can start it straight from the dealership

Most dealerships won’t let you drive off the lot without showing proof of insurance

If you already have auto insurance, it’s likely that it has a grace period that gives you temporary protection for a week or more before you have to formally add your new vehicle to your policy.

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