Do I need insurance before I buy a used car, or is the car covered by the seller’s insurance? This is a question most drivers often ask.
In most states, drivers with ownership of a registered vehicle must have car insurance coverage. These states have minimum liability car insurance requirements for drivers to meet. While we have all these, you need insurance before purchasing a new or used car.
Although you need car insurance, you do not necessarily need to have an active insurance policy to purchase a used car.
Generally, it would be more difficult to buy insurance if you have yet to determine what type of car you would like to buy.
When purchasing car insurance, the insurer will request the vehicle information, such as mileage and the VIN.
However, it is possible to buy a car without insurance, but you cannot legally drive the vehicle on the road until insurance is bought.
Should I Buy a New Policy for a New Car?
You don’t need to get a new insurance policy to get a new or used car. If you already have a car insurance policy, you can just easily add the new car to it.
To do this, simply contact your car insurance company, insurance agent, or insurance company mobile app to add the new car to your policy.
Your existing car insurance company may offer a grace period that covers the new car automatically for a short period before you are required to add it to your policy.
This grace period often lasts up to 30 days, but every insurance company has a different time frame. However, keep in mind that if you depend on the grace period for the new car, your insurance coverage will be increased, and this can cause a big issue.
Is There a Grace Period for Getting Insurance for a New Car?
No driver will like to face the consequences of a car insurance lapse. For this reason, it is important to ensure that there are no gaps in insurance coverage.
If you already have car insurance coverage, you would get a grace period that allows you to update the new car on your policy from your car insurance company. Irrespective of what coverage you have, it will be active while the grace period is on.
However, the length of the grace period depends on the insurance company. This means how long the grace period varies by insurer.
How Do I Get Insurance for a Used Car?
Getting car insurance for a used car is very easy. As long as you put together the right information before proceeding with the policy request. You can purchase insurance for your new car through the following process:
Put Together The New Car Information
Whether you are purchasing a new policy or you are adding it to your existing policy. You will be required to provide some information, such as registered owner’s information, VIN, lienholder or leasing company, vehicle usage information, and recent odometer reading.
Appeal For Accurate Effective Data
To drive your new car legally, the car dealer will require you to purchase coverage for the car. And it should be on the same day of purchase.
Some car insurance companies will give same-day insurance coverage, while others will display a default effective date for the day after your purchase.
However, it is very helpful to indicate what date you would like your coverage to begin to prevent unnecessary callbacks by your car insurer.
Request For An ID Card And Binder
Proof of car insurance is most times always required by the car dealer in the form of a binder. You can get this from most car insurance companies or insurance agents easily through email.
It may be helpful to get coverage for your new car before visiting the car dealer or private seller to purchase the car.
While buying a new car can be a day event, getting insurance before time makes the process a lot smoother.
Can I Transfer Car Insurance From My Old Car To A New One?
As previously stated, during the grace period given by the insurer, your existing policy would transfer to the new car.
However, yes, it is possible to transfer car insurance from an old car to a new one. This process is straightforward.
Just by contacting your insurer and submitting the right information, you can transfer your insurance from one car to another.
Another way to do this is through the insurance company’s mobile app or online portal. There you can easily make the necessary changes yourself.