When a person starts looking for a car to buy, they often spend around 59% of their time viewing cars for sale online.
You might shop online, too, to find a car, but you may have some questions about buying a car. One great question you might have is, “do you need insurance to buy a car?”
If you want to buy a car, you’ll need to know this answer before you start shopping. Here is a guide to help you learn more about the answer to this question.
You Can Usually Purchase the Car Without It
The question is, “do you need car insurance to buy a car?” One interesting thing to know is that you typically don’t need car insurance to buy a car.
In other words, you can choose a car and pay for it without providing proof of insurance. Most dealers won’t question you purchasing a car without auto insurance, but the topic will come up before you leave the car dealership.
You Might Not Be Able to Leave the Lot
When you purchase a car, the dealer will work through the necessary paperwork. After you sign all the documents, you will own the car.
The downside is that the dealer might not let you leave the car lot without insurance. Therefore, “do you need proof of insurance to buy a car?”
While you don’t need auto insurance to buy the car, you’ll probably need it to drive the car home.
It Depends on Your Loan Status
One of the most important factors that plays a role in the answer to this question is your loan status. How are you paying for the vehicle purchase? You can pay for a car in two main ways.
If you’re paying cash for the car, you might not need proof of car insurance. After all, the dealer has nothing to lose if you have a wreck on the way home.
If you’re paying for the car with an auto loan, the dealer will typically require proof of auto insurance coverage. The lender has risks when issuing the loan, and they’ll require insurance coverage.
Your Current Policy Generally Offers Coverage
The good news is that your current auto insurance policy provides coverage when you buy a new vehicle. If you already have auto insurance, you can give the dealer your current policy number.
Your current policy will protect you in your new car for a limited time. When you get home from buying the car, you should contact your insurance agent to tell them the details about your car purchase.
Do You Need Insurance to Buy a Car? Learn More
Do you need insurance to buy a car? This question is one that many people ask when they begin shopping for a vehicle. Now that you’ve read this guide, you’ll know the answer to this vital question.
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