Should You Get Auto Insurance Before or After Buying a New Car? 

Purchasing a new vehicle is exciting and represents a significant financial investment. Given the inherent risks and exposures involved in owning and operating even the safest types of automobiles, understanding the intricacies of car insurance must be a top priority. Specifically, knowing when you’ll need coverage can be critical, as even a brief period during which you lack insurance could leave you vulnerable to devastating losses and jeopardize your vehicle ownership.

Am I Required to Have Coverage at the Time of Purchase?

In many cases, you’ll need to have auto insurance set up for your new vehicle before you’ll be allowed to drive it off the lot. Auto dealerships will often require proof of insurance before handing over the keys and allowing you to officially take possession of your new car.

Additionally, if you’re financing your vehicle, you’ll also need to account for lenders’ requirements. Most auto loans include terms requiring certain levels of car insurance until you’ve fully paid off your purchase.

Furthermore, most states have strict laws requiring auto insurance for all motorists operating vehicles on public roads. When registering your new car with your state’s Department of Motor Vehicles, you’ll likely need to show proof of insurance. Violating these mandates could lead to significant penalties, even if you’ve only owned your new vehicle for a brief period and plan to get coverage soon.

How Can I Get the Right Coverage?

It’s wise to start shopping for auto insurance well in advance of when you plan to purchase your new vehicle. If your coverage is not active, you may not be able to finalize your transaction. Procrastinating your search for ideal coverage could pressure you into making a hasty decision, potentially leading to insufficient coverage or suboptimal rates.

At D'Arcy D Sampsell LLC, we can help motorists in the Milton, Pennsylvania, area tie a tidy bow on their new vehicles by securing ideal coverage. Contact us today to make sure your new purchase goes smoothly.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.