Do You Need Car Insurance to Buy a Car?

buying a new car

In most states, you cannot drive a new (or new to you) car off the lot without showing proof of insurance coverage. The reason is simple. It’s the law. There’s a little more to it than that when you’re asking the question “Do you need car insurance to buy a car?”

Despite state minimum car insurance requirements, if you take out a loan or lease your new car, your leasing agency or loan provider will also require that you have far more than the state minimum coverage. This protects their investment in the vehicle as well. These are the types of insurance you might need when purchasing a new or gently used vehicle.

Verify Coverage with Existing Auto Insurance Provider

If you have an existing vehicle and auto insurance policy, it is best to check with your insurance agent when you decide to look for your next vehicle. Some policies will extend coverage to your new vehicle for a certain number of days so you can buy your new vehicle when it is most convenient for you to do so.

Even if you believe this to be the case, it is always wise to verify before you buy so you can be positive and can avoid having to leave your shiny new car on the lot until a time when you can go into your insurance company’s office to get a new policy along with proof of insurance.

Check New Insurance Costs Before Making Your Final Selection

Your insurance costs will change when are buying a new car. There are so many variables that it is highly unlikely the costs will remain the same. Your new insurance premiums will be based on the value of the car, safety rating of the car, and even the color of your new vehicle (some paints are more difficult to match than others).

You wouldn’t buy a new car without exploring the monthly notes, but your insurance rates can change drastically. It’s important to have the big picture regarding these changes before you buy a new car when possible.

Whether you are buying your very first car or you’re purchasing a new car, you will need insurance on your new vehicle before you can leave the lot. It is an absolute must for anyone financing or leasing a new vehicle. And it’s a good idea to compare auto insurance rates with the help of an independent insurance agency.

Plus, securing your auto insurance before making the purchase means that you can drive home happy and that you are covered if an accident happens on your way home from the dealership.

For multiple car insurance quotes, complete our online auto insurance comparison form.