It's usually best to buy car insurance before buying a new vehicle. If you already have car insurance for another vehicle, you may not have to buy another plan yet. Most insurance companies offer a short grace period during which your new car is covered. Yes, you'll need insurance to take your new vehicle home.
Even if you don't know the specific car you're buying, check car insurance options before you buy so you can start your policy the same day you take home your new car. Almost every lender will require you to get full coverage car insurance when buying a car. Full coverage includes collision insurance, comprehensive insurance and liability insurance. When you completely cover your vehicle, you'll have protection against all kinds of accidents or other damage, such as theft or fire.
To get car insurance, you need your driver's license, vehicle registration, and social security number. You will also need to provide information about your car to get insurance for it, including the date of purchase, current mileage, and vehicle identification number. In addition, car insurance coverage requires at least a partial payment upfront, so you'll need to have a credit card or banking information handy. Make sure you know what type of protection is included in each type of car insurance before deciding whether or not to get it.
While some people may wait until they sign for a car to get car insurance, it's usually best to find coverage well in advance. In almost every state, you need auto insurance before you buy a car; it's illegal to take your new vehicle out of the parking lot without proper insurance. Stephanie Nieves is an editor and insurance expert at Policygenius, where she covered home and auto insurance. Angele Doakes is an expert in home, auto, life and health insurance and an operations manager at Policygenius.
Before you drive your new car home, you'll need to purchase an auto insurance policy that meets your state's minimum requirements. If you already have auto insurance for another vehicle, you usually have between seven and 30 days to tell your insurance company about the new car, during which time your current policy will automatically cover it. Drivers who already have car insurance have a grace period before adding their new car to their car insurance policy. This is because car insurance companies look at driving history and insurance history when setting car insurance rates.
If you already have car insurance, there is usually a grace period of 7 to 30 days before you need to report your new car to your insurance company and add it to your policy. If you're buying a car and you don't have car insurance yet, you'll need to purchase coverage for your new vehicle before you leave the parking lot. Technically speaking, some car dealerships may allow customers to purchase a car without having an active car insurance policy. This means that your current auto insurance policy is automatically extended to cover a new car you buy even before you officially add it to your policy.