Do You Need Car Insurance To Buy A Car?
If you want to purchase a car, the dealer might not let you leave the dealership until you show proof of auto insurance coverage. Therefore, you will likely need to buy auto insurance before purchasing a car. How do you do this, though? Can you get a policy before car shopping? Here is an explanation of why you need car insurance when buying a car and how to get a plan.
Why You Need It
Before you do anything else, it's important to learn why you need auto insurance coverage before leaving a car dealership. The dealer will require that you have insurance because of the loan you get. All auto lenders require insurance coverage on any vehicles a borrower wishes to purchase. If you do not get a loan, you might think you will not need coverage. However, this is not necessarily true. The dealer might require it anyhow for protection. For example, if you leave the dealership and total the car, you might try to sue the dealer or cancel the check you wrote. For protection, the dealer will ask to see your proof of insurance coverage before you drive away.
How to Get Coverage if You Already Have an Auto Insurance Plan
If you currently have an auto insurance plan, you can use it as proof of coverage when buying a new car. Your new plan will cover the car you buy. As such, if you have a current plan, you can show the dealership the policy. When you get home with your new vehicle, you can contact your insurance company to update your plan.
How to Get Coverage if You Do Not Have a Current Plan
When you buy a car and do not have a current insurance plan, you may want to call around before you shop for a car. When you do this, you can find an insurance company to use, and you can give them your information. You can tell them that you want to buy a car and will need coverage. After choosing a car to buy, you can call the agent from the dealership to get a policy started before you leave.
If you want to buy a car soon, you should understand that you will need auto insurance to leave the dealership. You can learn more about buying a car insurance plan by speaking with an agent before shopping for a vehicle to buy. Contact a company that provides auto insurance coverage for more information.
