It’s common to ask ourselves whether we need car insurance before buying a car. And technically, we could buy a vehicle without insurance before we take it home in two states. But in all the other states, we will be required to purchase insurance for our vehicle.
Car insurance must be purchased before the car because otherwise, it will be considered driving without insurance in all states except New Hampshire and Virginia. For this reason, we must have at least a minimum liability insurance whenever we are behind the wheel.
Also, when we buy our car from a dealership and finance it, most will not let us leave without insurance. This is because if we have an accident without insurance, the costs can skyrocket and be devastating.
Can you have insurance without having a car?
We can have an automobile insurance policy before we buy our vehicle. However, for the policy to provide coverage on the car, we will need to call the insurance company or agent to inform them of the new car and have it added to our policy.
Obtaining an insurance policy is very simple, and you can do it online. This way, you can get discounts and lower rates for purchasing auto coverage online.
We will likely have to purchase the insurance policy without technically owning the car. In these cases, we will have to provide our information and the vehicle, especially if we already know the vehicle we are buying.
This way, we will allow the proper coverage to be offered to us so that the vehicle will leave the lot legally when purchased.
How long does it take to get car insurance?
We will be able to obtain our car insurance in just one day, and most insurers provide that service. However, we should always have all the information prepared beforehand, such as the vehicle identification number or VIN, current insurance information, driver’s license number, and personal information.
It is best to set aside enough time for the procedure because, in this way, we can avoid stress. In the best-case scenario, coverage will not be needed on the same day, and everything will be fine.
What coverage is needed for a vehicle?
The type of coverage we need will depend on your situation. In most cases, lenders will insist on full coverage insurance, so you should get full coverage if you are financing the vehicle.
The most common types of auto insurance are comprehensive, collision, and liability. We will always have to review our specific needs regarding insurance because, in some cases, we are likely to need coverage against natural disasters.
On the other hand, some states require specific coverage if we are discussing purchasing a used vehicle. We will always have to take a close look at the coverage offered by the insurance company and make sure that it fully complies with the requirements of the state where we are.
Are auto insurance rates too high?
The average state cost for auto insurance varies completely, and the price will depend on the state, driving record, and other variables. Comprehensive coverage will offer collision, comprehensive, and liability insurance to be completely safe.
It is always a good idea to estimate the total cost of auto insurance before you buy it. This way, we can get an idea of what you will pay when adding the different coverages.
Is there any way to save on our auto insurance?
Of course, we can find multiple discounts, with which we can save a lot of money on our car insurance.
- Asking for several quotes: different companies may offer different rates with similar coverage. For this reason, it is better to investigate different companies until you find the one that offers you the best price.
- Bundling: many companies will give you discounts if you buy insurance for several cars or your home with the same company.
- Safe Driving: insurance companies tend to give discounts to drivers with no violations on their records.
- Telematics: many companies offer to track drivers and their driving habits. This way, depending on your driving habits, you can save money on your insurance policy.
What to do in case of buying a used car?
Regardless of whether our vehicle is new or used, insurance will be required except in New Hampshire. In some cases, if we do not have insurance, we will have to pay a fee for driving a vehicle that is not insured.
It is not advisable to assume that we will not have an accident because it is always better to purchase insurance in the first place. Buying insurance for a used car is very easy, and it is a very fast process. In addition, if we already have a policy, we can add our used vehicle to the same policy in most cases.
We must remember that it is always important to have an insurance policy that covers us against most risks because otherwise, the expenses we will have to incur will be very high.