• Home
  • Auto
  • How Important is Insurance When Purchasing a Car?

How Important is Insurance When Purchasing a Car?

By on October 8, 2020 0 838 Views

If you are buying a car, it’s safe to assume that you have numerous questions on your mind – one of which may be whether you need insurance at the time of purchasing the car. The short answer is yes. Most states in the country will require you to have an auto insurance plan with at least basic coverage to take your car off the dealership’s parking lot. Given this, it’s a good idea to have your car insurance lined up before you buy the car.

When Do You Need Auto Insurance to Purchase a Car?

Whether you are buying your car on loan or with cash, you’ll need to have auto insurance to take the car home. Fortunately, you can start looking for car insurance plans before you even visit a dealership. 

How to Get Car Insurance Without Owning a Car

You may be wondering how you can get car insurance if you don’t already own a car but are planning to buy one in the near future. The thing is, you can get quotes from car insurance companies by providing the insurer a few details of the car you would like to buy – make and model of the car, intended use for the vehicle, trim of the car, and around how many miles you are likely to drive the car for. 

If you’ve already selected a particular car that you will be purchasing, you can ask the car dealership for the VIN and purchase your auto insurance policy in advance. When you do this, ensure that the start date in your policy document is the same as the date on which you intend to make your purchase and drive the car home. 

Can You Drive a New Car Without Insurance?

Most states in the U.S. require car buyers to have a minimum amount of coverage to drive their cars. If you drive your newly-purchased car off the dealership’s lot without auto insurance, you may be penalized severely if you are caught, and your license may be suspended. If you meet with an accident (even if it is just outside the dealership’s lot), you could get into even more trouble. 

Even if the state that you reside in does not require you to mandatorily have auto insurance, you’ll still be financially responsible for any damages or injuries that may be caused during the accident. 

So, given this, make sure to check out the auto insurance options available and purchase a suitable policy before you buy your car.