Walking into a dealership or meeting a private seller to buy a car is an exciting moment. You’ve found the perfect vehicle, and you’re ready to make it yours. But amidst the paperwork and handshakes, a crucial question often arises, one that many new buyers aren’t prepared for: do you need insurance to buy a car?
The short answer is yes, you absolutely do. In fact, having at least a basic auto insurance policy is not just a smart financial move; it’s a legal requirement in almost every state before you can drive your new purchase off the lot. Let’s walk through what you need to know to make this process smooth and stress-free.
So, Do You Need Insurance to Buy a Car?
When you’re finalizing the purchase, you’ll need to provide proof of insurance to the dealer or, for a private sale, to the DMV when you register the vehicle. This isn’t something you can put off until after you drive away. Lenders also require comprehensive and collision coverage if you’re financing the car. Driving without insurance is illegal and leaves you personally responsible for any damages in an accident, which can be financially devastating.
How to Get Covered Before You Drive Away
The good news is that arranging coverage is straightforward. If you already have an auto policy for another car, you typically have a short grace period (often 14 to 30 days) to add your new vehicle. Simply call your insurance agent or use their mobile app to add the car, often right from the dealership. If this is your first car, you’ll need to shop for a new policy. You can get quotes online or over the phone and have your proof of insurance emailed to you instantly.
What Kind of Coverage Should You Get?
At a minimum, you need your state’s required liability insurance. This covers costs for the other driver if you’re at fault in an accident. However, most experts recommend going beyond the minimum. Collision coverage pays for damage to your own car from an accident, while comprehensive coverage protects against theft, vandalism, and weather events. If you have a loan, your lender will insist on both.
A Simple Step for a Smooth Purchase
Thinking about insurance before you buy saves a lot of last-minute hassle. A quick call to your insurance company to get a quote for the specific car you’re considering can help you budget for the total cost of ownership. Having your agent’s number on hand during the buying process makes the final step seamless.
By securing your insurance in advance, you protect your new investment and ensure your driving journey starts safely and legally. It’s the final, essential piece of the puzzle that lets you enjoy the open road with true peace of mind.