How to Get Car Insurance Before you Buy a Car

When it comes to car insurance, the rules can be confusing. For example, are you required to have auto insurance before you purchase a car? This is just one of the questions that can be almost impossible to find the answer to, leaving you frustrated and overwhelmed. Below, you’ll find the answers to one of the top insurance questions, how to get car insurance before you buy a car.

Do First Time Drivers Need Car Insurance Coverage First?

The answer to this depends on the situation. For example, if you are planning to buy your first vehicle and you’ve never had a car insurance policy before, you will need to obtain coverage first. So, here’s an even bigger question. How do you do this? Here’s a look at what you need to do.

1. Whether You Plan to Buy a New or Used Vehicle, Start by Narrowing Down Your Car Choices

Before you even start to look for coverage, you will want to get an idea of what type of automobile you wish to purchase. You can browse dealer lots or search the internet. This is important because several factors can affect your auto insurance rates. This includes:

• The value of the car: The higher the car’s value, the more you can expect to pay for your car insurance. On the bright side, if you opt for comprehensive and collision coverage, the insurance company will be obligated to pay out the market value of the vehicle if it is totaled (wrecked beyond repair) or stolen.
• The age of the car: The older the vehicle, the lower your insurance premium is likely to be.
• Any special features the car may have: This may include items, such as anti-theft protection.
• Cost of parts: Cars that are high-end and require special equipment are pricey to repair, which increases the cost of damage claims. As a result, you can expect to pay more for your insurance.
• Safety record: Cars that are known for protecting riders mean fewer claims for damages and injuries. You’ll benefit by seeing your premium go down.
• Whether you are making payments on the vehicle or paid cash for it: If you are still paying for the car, you will be required to have certain types of coverage, which will increase your payments.

Be aware that if you are buying a new car, you will probably want collision and comprehensive coverage, which covers damage and the loss of the vehicle. If you get a loan for the auto, whether it is new or used, the lender will require that you have both collision and comprehensive coverage.

If you are getting a loan to pay off the car, be sure to estimate the cost of your monthly payments. You’ll want to know this to be sure the cost of your loan payment and car insurance will fit into your monthly budget.

2. Next, Get multiple Car Insurance Quotes

Once you know what you are interested in, it’s time to look at your insurance options. One of the easiest ways to do this is by visiting an online site. Enter your zip code and the information about the cars you have in mind, and you’ll be able to see your estimated car insurance costs. This is the perfect way to get an idea of what to expect to pay for your monthly auto insurance.

Another way to compare rates is to do so while at the dealership. Keep in mind that you will need to make sure you have enough time to both browse vehicles and also look into insurance rates. The dealership should be more than happy to let you use their internet to search for quotes and even secure a policy. This is especially true if you show genuine interest in one of the automobiles they have for sale.

When comparing different quotes, make sure that the coverage you are considering is equal.

3. Agree to purchase a vehicle

After looking at the different offers, choose the one that best meets your needs. Be sure that it provides all the things that you need and won’t cost more than you can afford. Although it isn’t required by law, it is time to talk to the dealer and make an agreement to purchase your car. By doing this, you will have access to the final bits of information you need to start your car insurance policy. You can then rest assured that the vehicle you love won’t be sold while you are shopping for cheap auto insurance. By agreeing, you’ll also learn other important details about the auto, such as:

• Any fees or liens
• Vehicle history
• Accurate mileage

4. Contact the insurance company to get your policy started

Before contacting the insurance company, it is very important that you verify all the information you have is 100% correct. Any inaccuracies could cause your policy to be canceled without you being made aware.

You can contact the insurer by phone, online, or in person. In either case, you will need to have certain information on hand. This includes:

• The 17-digit vehicle identification number (VIN)
• The current mileage on the car’s odometer
• The vehicle’s make, model, and trim
• If possible, the vehicle’s history report
• Your personal information, which may include your social security number, and your driver’s license number

When providing your information, be honest. After entering your details, you are almost certain to need to make a payment for the policy to go into effect. The date you make your payment should be the effective date of the policy. If it is not, your policy will not go into effect until the specified date. (Be aware that if it is still going to be several days before you finalize the purchase, you can wait until then for the policy to go into effect.)

Purchasing a New Car with an Existing Car Insurance Policy

If you already own a vehicle and have it insured, this may allow you to drive a new car off the lot without setting up a new car insurance policy first. However, when you get home, you will need to immediately report the changes, either in person or online, to ensure your new automobile is insured for driving. Depending on your insurance company, you may have a 5-day to a 30-day grace period before you are required to report the new purchase. If you are not certain what your insurance company’s policy is regarding grace periods, you can call them or read through your current policy.

You must know with 100% certainty if you qualify for a grace period, as well as what is covered, before buying a new car. This will be crucial information to have, in the event you get into an accident.

Although you may currently have a car insurance policy that allows for a grace period when you purchase a new car, it is a good idea to go ahead and obtain coverage for your new vehicle before you finalize your purchase. In most cases, if you have an existing policy, this can easily be done over the phone while waiting to finalize the purchase paperwork at the dealership.