Do You Need Insurance Before You Buy a Car?

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Do You Need Insurance Before You Buy a Car

On average, you’d need to shell out almost $38,000 to buy a brand new light vehicle these days. Even used car prices are rising, with their average cost having gone beyond $20,000 in 2018.

With that kind of money on the line, getting car insurance is definitely a smart idea. More than being a wise financial move, auto insurance is also a legal requirement in most states.

The question now is, do you need insurance before you buy a car? Or can you get coverage after you take your new (or used) ride home?

We’ll answer these burning questions below, so be sure to read on!

Do You Need Insurance Before You Buy a Car?

This depends, but most dealerships would ask for proof of insurance. You’d need to show that you have insurance before they even give you the keys to the car. This is especially true if you’re buying a car through a financing program.

Even if the dealer won’t ask you for proof of insurance, you still need to have insurance to drive the car home. Meaning, you might be able to buy a car without coverage, but you won’t be able to drive it off of the lot. insurance buy new car loan

The only exception is if you live in New Hampshire or Virginia. All other states, except these two, require drivers to have insurance to operate a vehicle. Meaning, you won’t be able to drive home your new (or used) car without insurance in almost every state.

Now, wouldn’t you want to change gears in your new ride the day that you pay for it? Of course, you would, so it makes sense to get auto insurance before buying a car.

What It’s Like in NH and VA

In New Hampshire, you may drive without insurance, but there’s a financial caveat. You need to prove that you have enough funds to shoulder the damages resulting from a crash you’re at fault for. If you can’t, the state will likely suspend your driving privileges.

In Virginia, you have the option to forego auto insurance and pay the $500 Uninsured Motor Vehicle fee. It’s a yearly fee that won’t even give you any level of coverage.

The bottom line is, the best move is to still get insurance before you buy a car in these two states.

Getting Car Insurance Before Buying a Car

Since it’s best to have insurance before you buy a car, it follows that you should shop around for a policy first. Do this even before you head to the dealership. Yes, even if you’re not 100% sure on the exact make, model, and trim that you’ll buy.

Comparing rates and offers is one of the best ways to secure a great deal on auto insurance. This gives you an idea of which insurers will provide the most bang for your buck. This can then make it easier for you to choose who to work with once you’re about to switch gears in your new car.

Don’t Buy a Car Without Exploring Your Auto Insurance Options

There you have, all the answers to your question, “do you need insurance before you buy a car?” Regardless of where you live in the US, auto insurance is something you shouldn’t go without. Even if your state allows you to buy a car without it, you should still invest in an auto insurance policy.

That said, we can help you explore all your auto insurance options, whether you live in Illinois or Texas. Request for your quote now and we’ll get back to you as soon as we can!

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