Question by nuwa k: What is the procedure regarding auto insurance when getting the car from dealership to home?
First time car buyer, going with a friend to buy the car from a dealership, how to get the car back to home ? I think I obviously need an auto insurance, but without knowing the vehicle registration details how to get the auto insurance before purchasing?
Hope my question is clear enough!
Best answer:
Answer by squishy
Many dealerships will suggest companies or allow you to phone them from the store. Or in some cases, allow you to shop around a couple of days and then bring the proof back in, though you may have to leave the car there while you do this. By law, most can’t allow you to leave without insurance; I would check with the dealership and see what their policy is regarding the issue. Some have insurance available there, but it is often more costly than if you shop around yourself.
Add your own answer in the comments!
{ 3 comments… read them below or add one }
You need to have insurance before you take the car off the lot. You have an idea of the kind of vehicle that you are looking for, so you can shop around for insurance quotes prior to going car shopping. If you had insurance on a vehicle, you could just contact the agent and inform then that you needed to add the new vehicle, but with no current coverage, you need to buy the policy before you take the car.
Once you know the car information, you can call the agent that had the best deal, and give them the exact information about the car you are purchasing. You can either give them a credit card number, or take them a check, and they will issue you a “binder” that covers you until the actual policy is issued.
call an insurance company BEFORE you buy the car and get a “binder” . After you get the car, call the insurance company back with the VIN, etc.
If you already own an insured car, the insurance from that car will automatically extend to the new car without having to first notify your company. You can call them with the VIN, etc after you get the car.
The procedure regarding auto insurance when getting the car from dealership to home depends on state rules and your current insurance coverage. In a State that requires insurance it doesn’t matter how early it is after the purchase, you need full coverage auto insurance to take the car off the lot, no questions asked. If your state does not require auto insurance, you may only be subject to the lenders auto insurance policies. If you have current full coverage auto insurance, usually this will transfer over to your next auto loan and you will have a few days to get your insurance agent the new info. I am not aware of many lenders that do not require full coverage insurance on their cars if they are carrying the auto loan note. If you are paying cash for your car and do not live in a mandatory insurance state, it is still a good idea to get insurance on your car before you leave the lot. I have seen several people have accidents within a short period of time from leaving the lot.