If you’ve never owned a car before but plan on getting one soon, you may be wondering whether you need auto insurance at the time of buying the car. In most states across the U.S., car buyers are mandatorily required to have at least a minimum amount of coverage to be able to drive the newly-purchased vehicle off the dealership’s lot. But how do you apply for insurance if you don’t have a car yet? Read on to know!
When Is Auto Insurance Required To Buy A Car?
You need auto insurance to be able to drive your car back to your home after buying it. Regardless of whether the car is bought on loan or with cash, you are still required to have auto insurance.
How To Buy Insurance Without A Car
Even before you buy a car, you can get quotes from insurance providers. All you’ll need to do is provide some basic information about the vehicle that you wish to purchase. If you’ve already selected the vehicle that you intend to purchase, you can ask the dealership for the VIN, after which you can purchase your auto insurance policy. Make sure that the date on which the policy coverage starts coincides with the date on which you intend to bring the car home.
Is It Legal To Drive A New Car Without Insurance?
Most states require you to have insurance before you drive a new car. Keep in mind you could get into a lot of trouble for driving without insurance even if you get into an accident right outside the dealership. Even if your state does not require you to have auto insurance, you will still be held financially responsible for the accident if it was your fault.
Not buying insurance will also create a gap in your insurance history, which could make auto insurance companies consider you a more significant risk. This, in turn, will cause your premium to rise.
How To Buy Auto Insurance
If you are looking to buy an auto insurance policy, follow the steps mentioned below:
- Gather details of your vehicle
- Assess how much coverage you require
- Research companies that offer auto insurance policies
- Compare the coverage benefits, pricing, and reviews of these companies
- Contact at least 3 companies for their auto insurance quotes
- Proceed with the company that offers the best coverage at a competitive rate
Buying auto insurance is a relatively easy procedure. It’s researching different policies and comparing rates that take time. So, assess your coverage needs and buy a suitable policy before you get your car.
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