Insurance Coverage for Our Family

Do You Need An Auto Insurance Policy Before Buying A Vehicle?

27 September 2021

Christian Byrd

Like most people, you have probably pictured yourself walking into a dealership and driving off with a new car. As long as you pay the required amount, you can drive off with your new car, right? Not quite. It's a little more complicated. In most states, it's illegal to drive a vehicle without an auto insurance policy. This means that you can't leave the lot without an automobile policy. 

Auto Insurance for First-Time Buyers 

If you intend to buy a new car, you can head over to the dealership, buy your car, and purchase an automobile policy while finalizing the deal. Thanks to modern-day tech, you can purchase your insurance policy via your smartphone. You'll need to sign up with an insurance provider to access this option. 

You can also buy an auto insurance policy from the car dealer. It sounds convenient, as you'll get everything under one roof. However, you may realize that you may not have all the features you wish. 

Buying insurance from your car dealer is convenient, but you'll often pay higher premiums and deal with add-ons and limited options. If you want an auto insurance policy, compare options, research, and read reviews. Settle for a dealer that lets you choose your preferred policy and add-ons as you please. 

For those buying another car, you'll typically have about a few weeks to notify your insurance provider of your purchase. Some providers require that you notify them immediately to add the new vehicle to your existing automobile policy. 

Auto Insurance for Used Cars 

It doesn't matter whether you're buying a used car from a friend or dealership. You'll still need insurance. Your friend or seller might allow you to drive off with an auto insurance policy, but it's not advisable. 

Almost all states legally require you to drive with insurance. If you don't want comprehensive coverage, you can pay for the minimum insurance needed in your current state. Although this sounds like a great way to save money, it could cost you more in the long run. 

You're not just buying an auto insurance policy to comply with the law, you're also buying protection in case something happens when driving. Anything can happen when driving, and you'll lose more if you pay out of pocket for the damages, repair, and replacements. 

Remember, auto insurance is necessary whether you think you need it or not. Buy an insurance policy before buying a car or while finalizing the deal. 

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