Car-Buying Tips: Dealing with Dealers, Insurance & the DMV


Importance of insuring a car before buying it

If you drive a car without getting it insured, you might end up getting fines and license suspension. The benefit of having auto insurance is that if you ever end up having your car damaged through an accident or it gets stolen, the insurance company covers the damage for you. It also lets you reimburse others for the damage that you have caused to their vehicle from an accident or a collision of a different kind. It saves you from loss by paying out of pocket for these kinds of expenses.

It is important to have your car insured right after purchasing it and before driving it off the lot. For many people, the process of auto insurance may feel frustrating and overwhelming, even if they have been dealing with it for years. There is a difference between knowing the kind of auto insurance coverages needed and getting the best rates.

The procedure of getting auto-insurance

It also depends on the situation if someone needs insurance to buy a car or if without insurance they can drive the car off the lot or if they can get insurance before purchasing a vehicle. Getting auto insurance when purchasing your first car ever is essential if you have never had an insurance policy. Once you decide what car you want to buy, you need to get information about it as much as you can. Then you should contact several companies to get quotes to compare the best price for the coverage as per the findings. Once you find the best company for the coverage, contact them to set up a policy for the car you have selected.

When buying a vehicle, proof of insurance is needed, and the dealership will request proof of your coverage. The purpose of proof of insurance before purchasing a car is to protect the lender, especially when the loan is taken from the car dealership.

When to get auto insurance when buying a car

Before finishing the deal, a policy is required if a person doesn’t have auto insurance coverage. Before driving the new car off the lot, a person needs to carry proof of insurance which is supposed to be shared with the lender for their satisfaction. You may be able to utilize the insurance policy that you have on your current car to at least drive off the lot. You will then have to ensure that your new car is insured for regular driving and use and make changes accordingly.

It is possible to transfer your old policy to your new car, but the cost may vary. Your old policy will cost more if you go from an older car to a new sports car. However, some insurance companies permit a five-day or even 30-day grace period for a new car purchase. It is still encouraged to purchase coverage for your new car before you get it, whenever possible.

This helps and protects you in many ways as rate surprises can be avoided this way. You would be surprised to know your potential coverage rates if you are considered a high-risk driver or have problems with your driving record or if you are 18 years old and a young driver.

Your current policy from the dealership can usually be adjusted to cover the car until you are home by making a call. Till then, you can purchase auto insurance coverage for your new car.

Getting auto insurance without a car

If a person has a current policy, it should cover them until they communicate the information to their agent about their new car. The make, model, and year are required to be known to the insurance company to add the vehicle to the policy.

There are still many options left for you to choose from if you have never had car insurance before. You can buy a policy just for a few days by contacting an insurance company that sells auto insurance for some time. You can look for the standard auto insurance company that you would want to use during this time.

By using personal information, such as age, gender, credit history, location, and driver’s history, you can get quotes for car insurance. These quotes will be incomplete, but you will have a better insight into the rates. You can avail of the policy by calling your insurance company and sharing the information with them once you decide on the car you want to buy.

Getting auto insurance on the same day

Getting car insurance within a day is possible. Your agent would need all of your information. Most insurance companies can let you have your policy complete in a day though it can make your day quite hectic. It will not be very stressful to have your auto insurance before the day you need it if you have enough time during the day.

It is also essential to have knowledge about the type of coverage you would need. The lender will most probably want you to have full coverage auto insurance. Only one type of auto insurance is not meant for all cars. The right insurance coverage for the car is also needed to be determined.

Most lenders would want to benefit themselves by fully protecting their investment, which is why they would want you to opt for full coverage auto insurance. Liability, collision, and comprehensive coverages are all included in full coverages. Financial protection will be provided to you and the lender this way if an accident ever takes place or if other damages are caused, such as theft or fire.

Ways to save money on auto insurance

Shopping around is the best way to save money on auto insurance. Different rates are charged for coverage by different companies. For example, one company may overlook one of the flaws, whereas on the other hand, another company may not, and a higher rate may be charged. Multi-policy, multi-car, and safe drivers are the most popular, yet quite a few discounts are available which can be availed. A lot of money can be saved by building the insurance.