Do You Buy Insurance Before Or After The Car
If you're thinking about buying a new car, you should also be thinking about insurance needs. In most cases, you may want to purchase an insurance plan before buying a new car to ensure that you have enough coverage.
do you buy insurance before or after the car
When looking for a car insurance policy for your new vehicle, shopping around for quotes can help you get the best deal possible. Be sure to compare rates from at least three insurers using similar coverage options. It helps to have a driver's license and an established driving record; it is hard to get real car insurance quotes without a license.
Margaret Wack is a freelance writer who covers insurance, saving, investing, banking, and more. Margaret earned a bachelor's degree in classics, comparative literature, and poetry from Smith College and a master's degree from St. John's College.
If you're buying a used car, you'll need at least the minimum car insurance coverage required by your state before you can legally get behind the wheel. If you're purchasing a new insurance policy, the cost of your premium will depend on factors like where you live and what kind of used car you're buying. If you already have car insurance, you can add your used car to your existing policy.
You may be able to buy a used car without having an insurance policy, if you are buying a car from a private seller, but you will not be able to legally drive the vehicle without car insurance. It's a good idea to get a car insurance quote before buying a used car so you have a ballpark estimate of how much it will cost to insure. Having a quote in hand will also make it faster to purchase a policy after the sale is complete.
In nearly every state, you'll need to provide proof of insurance before taking a used vehicle home from the dealership. If you don't have insurance when you purchase your used car, you won't be able to drive it off the lot until you have a policy. If you already have insurance, you can add the used car to your policy, though you generally have a grace period of a week to a month to do so after buying it, depending on the insurer.
You don't need a separate car insurance policy for your used car, even if your existing policy only covers new vehicle(s). You do need to inform your insurance company that you bought a used car and would like to add it to your policy. If insurance rates change after adding your used car, you will be responsible for paying the difference in premium costs.
If you get into an accident after your insurer's grace period has lapsed, you may not be covered for damages you cause or damage to your vehicle (if you carry comprehensive or collision). It's a good idea to add your new car to your existing policy as soon as possible to avoid any accidental lapses in coverage.
In many cases, a used car can be cheaper to insure than a new one, especially if you carry comprehensive car insurance or auto collision coverage. Since used cars are generally worth less than new ones, they can be cheaper to repair or replace. However, car insurance rates depend less on whether the car is used or new and more on the details of the vehicle and your policy, including the car's make and model, your location, and the amount of coverage that you carry.
For the most part, there's no difference between insurance for used and new cars. Considerations for standard coverages like liability, uninsured motorist (UM), and personal injury protection (PIP) coverage are generally the same.
Please note: The above is meant as general information to help you understand the different aspects of insurance. Read our editorial standards for Answers content. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by state, and are not available in all states. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for the content of any third-party sites linked from this page.
A car insurance grace period is the amount of time between buying a vehicle and buying car insurance that an insurance company will allow. If you have an auto insurance policy and you buy a new vehicle, your insurer may give you a certain amount of time before you have to notify them. Depending on the insurance company, grace periods can range anywhere from a week to 30 days, according to Bankrate.
If you have any questions, you can call your insurer. Some insurance companies offer 24/7 customer support. If you don't yet have insurance, you can get quotes online fairly easily at the dealership. Better yet, if you know the vehicle you want to get beforehand, consider getting various quotes before going to the dealership.
The scenario may change for those who are financing or leasing a car. Typically, you will have to show proof of insurance to your dealer to be able to take possession, according to David Kelleher, senior property and casualty insurance specialist at the NAIC. In this case, a weekend car purchase could delay your ability to drive home in your new vehicle if you have not arranged specific coverage for that vehicle in advance.
Leasing contracts also may contain a so-called "forced place" clause. This allows the leasing company to arrange for insurance and add it to your monthly fee, if you don't provide proof of insurance within a specified window, says Kelleher.
However, dealers are required by law to insure their cars, and that insurance would typically cover an accident that occurs during a test drive. Keep in mind, though, that in some instances, a dealer's insurer may seek reimbursement from you or your insurer if you cause an accident during a test drive.
Driving on California's highways can be a risky proposition. Whenever you are in a vehicle, there's a risk of being involved in a traffic accident. Whether it's a small "fender bender" or a major injury accident, knowing in advance what to do can help you avoid costly mistakes. This guide discusses what to do after an accident and what to expect when you file a claim with your insurance company.
When purchasing insurance, carefully review the application before signing to determine if the coverages, policy limits, and deductibles are suitable for your needs. After you receive the policy, review the declaration page. It contains important information about the covered drivers, identifies the vehicles insured, as well as the coverage limits amounts and deductibles. Make sure the information is correct and the coverage is what you purchased. If changes are needed, send your request to your agent and or insurance company in writing and keep a copy. Use certified mail return receipt requested to verify receipt of your documents.
A. Your insurance company will contact you for detailed information regarding the loss and may take a a written or recorded statement. An examination under oath can sometimes be requested. As part of the investigation, other drivers and witnesses may also be contacted. If you have medical payments or an uninsured motorist claim, you must provide documentation of your loss (injuries, medical expenses, lost wages, etc.).
A. A claim representative should contact you within a reasonable period of time after you report the loss. However under certain circumstances, the insurance company can take up to 15 days to contact you. If you do not hear from anyone, call your agent or insurance company for assistance. If they are not responsive, or you believe there is an unreasonable delay in settling your claim, contact the Department of Insurance.
Read your policy to determine what is covered. Pay particular attention to exclusions and limitations. For example, there is usually no or limited coverage for enhanced aftermarket stereo equipment, telephones, or tires and wheels unless it is Original Equipment installed by the automobile Manufacturer (OEM). Additional coverage is usually available for such installed equipment at an additional charge.
A. Most standard policies contain an appraisal provision, which can be helpful in the event there is a dispute regarding the amount being offered by the insurance company on a total loss settlement of your vehicle. Read your policy to see if it contains one. Under this provision, either of you can demand an appraisal. Each party selects a competent appraiser. The appraisers then select a neutral umpire. If the appraisers cannot reach a mutually agreed amount, their differences are submitted to the umpire. An amount that any two agree upon is binding. Each party pays its own appraiser; the umpire fee is shared. 041b061a72