If you’re considering a new car, assess your auto insurance needs. In most circumstances, you should acquire insurance before buying a new vehicle to secure the best coverage.
How Soon Do You Need Insurance?
Purchase auto insurance before purchasing a new car. You may not need to buy a new policy if you currently have one. Most insurance companies cover your new car for a limited time. Depending on the dealership and whether you’re financing your new automobile, you may need evidence of insurance before driving it home.
If you buy a car from a private seller, they won’t ask for proof of insurance. However, driving without insurance is unlawful and can cost you a lot in court and much more if you are in an accident.
Obtaining New Car Insurance Proof
Before you drive away in a car purchased from a dealership, you must provide proof of insurance. In some circumstances, you can call an insurance agent right from the dealership. You may also be able to present evidence of insurance for another car. This is usually required whether buying a new or secondhand vehicle. Even if you want to lease, you must show proof of insurance.
Most insurance providers will give you prices quickly, and you can generally receive new insurance within 24 hours.
What Is a Grace Period?
Always read your policy to see if and what your grace period covers. WalletHub reports that this grace period ranges from seven to thirty days depending on the supplier. Even if you have a grace period, it only covers the level of coverage you had previously.
If you’re buying a high-value vehicle or taking out a loan, you may be obliged to have full coverage, including comprehensive and collision. A comprehensive coverage policy protects you from damages and medical fees if you injure someone else’s car.
Updating Your Insurance and Choosing a New Car
If you already have insurance and expect to keep it, you must notify your provider that you are buying a new car.
- Vehicle identifying number (VIN)
- Purchase price
If you are getting new insurance, you will need to submit additional information such as your name, address, and driving record.
Your insurance company will compute your premiums once you give them the vehicle’s details. Your premium may change depending on the worth of your new automobile and your old car. You don’t have to stay with your present supplier. You can always switch providers if they raise your charges too much or if you wish to compare offers.
All you need is the vehicle’s VIN to compare rates. If you decide to switch providers, buy your new insurance before canceling your auto insurance. New insurance providers may charge you more if you have a gap in your coverage, as they will consider you as a higher-risk customer.
Shop Around for the Best Deals
If you’re looking for a new car insurance provider, acquire rates from a few different companies. Or you can engage with an independent agent who can get you estimates from other suppliers. It would help if you have the following things on your insurance policy to acquire the best quote:
- Full names of all drivers
- Birth dates of all drivers
- VINs of your new vehicle and any other vehicles
- Social Security numbers of all drivers
- Your home address
- A copy of your former insurance provider’s declarations page
Unless you have previous auto insurance coverage, Policygenius advises against driving your new car home. Otherwise, you risk a ticket or, worse, an uninsured accident. Most US states mandate insurance. Driving without it can result in license suspension. In addition, if you are not currently insured, you may be obliged to pay for your vehicle even if it is totaled.
You may have to pay both the other driver’s and your damages. If you live in one of the states that do not require insurance, you could spend thousands of dollars repairing vehicles and medical expenses if you do not have proper coverage. Buying insurance before a new car is ideal. This assures you know your rates and protects you while driving your vehicle home. It also allows you to compare prices before buying insurance.
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