Buying a car and driving it away on the same day
Purchasing a vehicle can seem like a daunting task. Not only do you need to find the right car, but you need to be aware of the laws in the state you will be driving in. Purchasing a car when you do not have car insurance already has a process to it, though there is also a process if you have an automobile insurance plan on another vehicle that you are getting.
Car dealerships often give discounts to people who trade in their used vehicles when purchasing a new car. There is also financing to take into consideration. If you are financing a vehicle, the leasing company will likely add requirements for expanded insurance policies. While each state has minimum limits for car insurance written into their laws, auto insurance companies want to make sure that their investment, and yours, are financially protected.
So, you want to buy a new vehicle and drive it off the lot the same day you purchase it? You can do that, but you will need to be aware of a few things. This article will show you what you need to do when you are purchasing a vehicle, whether you already have an automobile insurance policy or not.
If You Already Have Car Insurance, Then Your Insurance Sort Of Covers A New Car
For people who already have car insurance, their ordinary insurance plan will provide coverage when you drive a new car off the lot in most cases. Most insurance plans provide coverage automatically for new car purchases equal to the broadest coverage you have on your current vehicle. You can check the terms of your current policy, or call your insurance provider, to confirm. Either way, this insurance coverage generally only covers your drive from the dealership to your home. Once you are home, you will need to add your vehicle to an insurance policy in order to drive legally and be protected.
If you are trading in a vehicle, you can drive your car off the lot and be covered with your policy without switching the vehicle it is on in most cases. You do also have the option of calling your insurance provider from the dealership and providing them with all of the information they need to make the switch then and there.
If You Don’t Have Insurance, Then You Need Car Insurance Prior To Driving Your Car Off The Lot
If you do not already have an insurance policy, you will need to get a car insurance plan before driving your vehicle off the lot. There are a few different ways to do this. You can get a free quote for car insurance here on this website and purchase a policy. Insurance US has the information you need to compare auto insurance plans. You can also contact insurance companies over the phone while you are still at the dealership.
Not only do you need to research the minimum requirements in your state and make sure that they are met, but there are other considerations as well. If you are financing your vehicle, as an example, there is likely to be a stipulation in your loan contract. Many financiers require that people carry collision coverage, comprehensive coverage, and lease gap insurance.
How To Add Car Insurance Before You Buy
If you are purchasing a new vehicle, you will need auto insurance coverage. As soon as you drive a new car, truck, or van, off the lot, it depreciates in value. Not only that, but spending a lot of money on a vehicle to then spend even more money on the vehicle you just purchased is no fun at all. Make sure that you have adequate insurance for your vehicle whenever you are driving it. This is a big investment and one that you should not put off. In many cases, the car dealership will not even let you leave with the vehicle until proof of insurance is provided. Either way, it is in your best interest.