Buying a car requires a lot of preparation. Since it’s one of the biggest items you’ll ever buy, it’s very important that you research all of your options before deciding on a model or dealer.
You may not be able to test drive a car and negotiate the sale price before you go shopping, but you can take steps to purchase insurance on your future vehicle. When you lead a busy life, it’s easy to procrastinate on important matters.
Is it necessary to have insurance to buy a car? Unfortunately, if you don’t have the right auto insurance policy when you buy your new car, you could be left waiting in the lobby. it is important to correctly schedule your insurance.
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Keep reading to discover four tips that will help you know exactly what to do.
#1: Buy auto insurance before you buy a new car
In fact, when you’re looking for the best car for you and your family, it’s best to shop for auto insurance before you start shopping for a car.
Once you have a general idea of how much auto insurance will cost, you can decide if you can afford it.
Each vehicle has its own unique rates. even the same models can have different rates if one vehicle is newer than the other. Rates for each vehicle depend, in part, on the car’s grade through the Insurance Institute for Highway Safety.
also depend on the following:
- car size
- how much does it cost to repair a car
- how expensive are the parts
- the number of claims drivers file in the same type of car
- coverage will be extended to one additional car for several days
- coverage will be extended to a vehicle that replaces another on the policy for the remainder of the term
- if you haven’t called your insurance agent to add the new car by the end of the coverage period, your coverage will expire
- you’ll get the most extensive coverage option you have in the car
- if you don’t have full coverage, you’ll get four days of comprehensive and collision coverage on the new car
#2: The dealer’s insurance coverage will cover test drives
You are not legally required to have insurance until you have a car. Since your test drive inventory is owned by the dealer, the dealer cannot require you to have insurance.
You can test drive as many cars as you like at any legitimate dealership without having your own existing policy.
Although the company has its own policy to protect them from being sued after an accident, there is still a chance that someone injured in an accident could sue you for recklessness.
so even though no type of vehicle code requires you to have insurance on a car you’re testing, it’s in your best interest to have some protection.
#3 – you must have insurance to buy a car
Do you buy the insurance before or after the car? When insurance is required, you should have an actual insurance policy on a car as soon as you own the vehicle.
Because you’ll become the owner of any car you buy while it’s still at the dealership, you should have insurance in place at some point while you’re buying your car, even before you go home.
Each state has different mandatory insurance laws. a couple of states don’t require insurance, but most do. what the state has mandated and what the dealer requires are two different things.
If you are financing a car, the dealer should verify that you have full coverage insurance on the car.
Full coverage is required on autos being financed because it is a condition of your auto loan.
It doesn’t matter if you’re financing your car directly through your credit union or getting a loan through the dealer, you still need to show you have comprehensive and collision coverage to protect the warranty.
#4: Your existing coverage will be extended for a period of time (grace period)
How do you buy insurance for a car you just bought? You may feel rushed after learning you need to have insurance right after you buy a car, but you’ll be glad to know it’s so much easier when you already have a policy.
If you already have a car insured in your name, your existing policy will give you more time to insure the car.
If you have a standard personal auto policy, the terms of the policy say your coverage will automatically extend to one car you buy during the policy period. Even if coverage is extended without a phone call, it won’t protect you forever.
Here are some things to know about newly purchased vehicle coverage:
If you are currently uninsured, now is the time to purchase a policy. start getting quotes on the cars you love and budget for insurance premiums by entering your zip code below.