If you’re shopping for a car, it can be tricky to buy an insurance policy until you know just which vehicle you’re going to buy. Do you need auto insurance before buying a car? Not necessarily, but you do need to be planning for your insurance.
You don’t need auto insurance to go test drive a vehicle at a dealership, and you can technically buy a car without car insurance. However, in most states, you need car insurance before you can register and drive the vehicle.
If you’re paying for the vehicle in full, you’ll need car insurance that meets your state’s minimum insurance requirements. But if you’re financing the vehicle, chances are the lender will require you to take out a comprehensive car insurance policy to fully protect the vehicle. You’ll be required to provide proof of insurance before you can drive the vehicle off the lot.
Technically, you can buy a car insurance policy the same day that you buy the vehicle, but that isn’t always a great idea. When you buy car insurance, it’s important to choose a policy that includes the specific coverage you want, and you should make sure you fully understand what’s included and what’s excluded. Plus, if you shop around for insurance, you may be able to get a better deal on your coverage.
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To make a well-informed decision, you can complete most of the steps of buying car insurance before you actually buy the car. To start, shop around and get quotes using a sample vehicle. Compare quotes from at least three insurance providers to get a sense of their rates.
Next, decide what type of coverage you want, as well as your desired coverage amounts. With that information, you can decide on the policy and insurance company that you want to choose.
Once you determine which vehicle you’re going to buy, you can provide the insurance company with the VIN and complete the purchase of your car insurance.
Before you buy a car, think about how it will affect your insurance costs. For example, a more valuable vehicle is more expensive to repair or replace, so you’ll pay higher rates for collision coverage than you would if you bought a less valuable vehicle.
Other factors will also impact your car insurance costs. Insurance providers charge higher premiums for drivers with a history of car accidents or traffic violations, because they’re riskier to insure. Even your credit score can affect your rates, so focus on maintaining a high credit score, which can help you get lower premiums.
If you want to further reduce your premiums, you might want to choose a policy with a higher deductible. Just remember that if you ever need to file a claim, you’ll have to pay that deductible.
You can get free car insurance quotes online today to start shopping for coverage as you prepare to buy your car.
