When buying a new/used car, will the dealership make you have insurance before driving it off the lot?
By Cars & Motorcycles on Mar 27, 2009 with Comments 18
vegasbaby21679 asked: I am buying a new car this week, but the current car I am driving (well, not really since it does not work right now) I do not have current insurance on. When I go to buy the new car, will they make me have insurance for the new car or can I renew the insurance on the current car for the new car until I get new insurance for the new car?
Filed Under: Buying New Car
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Yes you must have valid insurance to drive the car.
yes, yes and by the way yes
The dealers don’t usually care. If you are getting finance for it, it’s usually whoever gives you the finance that will expect it to be insured
But I’m Australia, and that’s only how it works here
if you buy it cash money you dont need insurance but if you buy it on credit or lease it you do need insurance because the bank requires it…
i never had to
The dealership probably won’t make you do it, but the company you finance the car with probably will. They will want insurance on the car to protect their investment in it. And the state you live in may require insurance, as well, before you can legally register the car.
Insurance goes with the vehicle, not with the driver. Renewing the insurance on your current car will not do a thing towards coverage on your new one. No, you can’t drive it off the lot without insurance in place. Just let your insurance know you are buying a new car, when you pick out the one you want, contact the insurance and they can get the needed information to fax you over a card so you can drive it off the lot.
This depends on the state. In Texas, where I live, one must provide proof of insurance before buying a car from any dealer, new or used.
Contrary to what other people have said here, if you have insurance on your current vehicle that will be sufficient to purchase the car. Insurance companies will give you a grace period of a day or two in order to call them and convert the insurance to your new car and WILL cover your new car should you have an accident during this time.
actually it depends on what state you live in in some states if you buy the car outright you dont have to have insurance to drive it off the lot although most states do have a insurance law stating you must have insurance to drive on their streets and roads, so it is a double edged sword, but its always a good idea to have insurance on whatever you are driving
most car dealership require you to have temporary insurance at least for a month after that you could call your regular car insurance and regiuster your vehicle actually you can do it after yoiu gotyour car you dont had to wait for for tmporary insurace to expire you can do it the next day or that day of you dont had nothing to do its a thing for dealership just making sure anything happen to you when driving out your new or used car are insured
better call your insurance co. and tell them you are buying a car and you need insurance now on it before you take and drive that car off the lot, the dealer will probably asume you have insurance but if your financing, the finance co. will require you to have insurance before taking the car off the lot or even giving you the loan.
Generaly they will add in temporary coverage for a few days to cover the car (not you, or other people) to alow you time to get insurance coverage.
But do it quick…..
Its all up to state laws, but I always had to have my insurance card with me.
Depends on the state, the company that you are getting the loan from, usually as long as you get insurance the next business day all is good
You have to have the car insured or it’s a liability for whoever is financing the car. Sometimes if you already have an insured car, that will cover, but every time I’ve bought a new car, I have to call my agent at the dealer, give them the car information, and give proof to the finance department.
In most cases yes. If the car is being financed you will need proof that the car is covered. Usually a binder from your insurance co faxed to the dealer with the leinholder acknowledged on the binder. And the coverage must include comp and collision. If you aren’t financing the car the dealer will usually be satisfied with a copy of your ins card. You have 24 hrs to transfer the coverage from your old car to the new. But that provision does not cover expanding the coverage. SO, if you want to renew and then transfer that’s OK if you old car carries the required coverage for the new. Clear?
Although some states differ, typically, the highest level of insurance that you carry on any of your cars, if you have more than one, automatically covers an additional or replacement car until you notify your insurance company, or 30 days, whichever occurs first. The insurance that the lenders require is property damage to cover the car. If you do not have that coverage on any car now, then you must have it before you drive off the lot. The dealer’s agreement with all lenders that he does business with says that he will verify that coverage or accept the liability himself. This isn’t a big deal because you should be able to add the appropriate coverage from the dealer’s office.
IF you take out a loan, then you will need to have verifiable insurance…and it has to be full coverage. If you have limited liability insurance on the car you are trading in, then you have to upgrade your insurance before taking final delivery. If you pay cash, they it’s not the dealerships responsibility.
If you go to buy a car on a Saturday, Sunday, or any day your insurance company is closed, then most dealerships will place you on a dealer tag and have you sign a rental agreement, which means that you are covered under the dealerships insurance if you need….however most dealerships have high deductibles. IF you don’t have insurance, you can get an insurance binder for a month or so of coverage. Talk to your dealer reguarding binders.
If you are trading in a car with full coverage, then you have a grace period, which varies from state to state as well as insurance company. If you lease, you must have full coverage and sometimes more coverage for bodily injury…100/300 and so on. I hope this clears things up for you!