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. Before purchasing a new or used car, it’s essential to have insurance, although an active policy isn’t necessary for 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. The insurer will request vehicle information like mileage and the Vehicle Identification Number (VIN) when purchasing car insurance. 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 add a new car to your policy, contact your insurance company, agent, or mobile app. Your current insurance may offer a grace period. 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, you can take advantage of a grace period from your insurance company to update your new car. 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 is varies by insurer.
How to Get Insurance for a Used Car
Getting car insurance for a used car is very easy to do. 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
To purchase a new car, provide information like the registered owner’s name, VIN, lienholder/leasing company, vehicle usage, and recent odometer reading for both new and existing policies.
Appeal for Accurate, Effective Data
The car dealer will demand you obtain coverage on the same day that you buy your new vehicle in order for you to drive it legally. Car insurance companies offer same-day coverage or default effective dates for the day after 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. Before purchasing a new car from a dealer or private seller, it may be beneficial to obtain insurance coverage. Obtaining insurance before the time of buying a new car can significantly streamline the process.
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. It is indeed 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.
