Do You Need Auto Insurance Before Buying a Car?

If you’re buying a car and don’t already have auto insurance, you’ll need to purchase coverage for your new vehicle before leaving the lot. While some people may wait until they're signing on a car to secure auto insurance, it’s usually better to find coverage well in advance.

Shopping for insurance ahead of time allows you to compare offers, determine the appropriate level of coverage and find a policy that’s right for you. You don’t need your new car’s vehicle identification number (VIN) to review quotes, so you can compare sample rates and decide on an insurer before you’ve purchased your vehicle.

• What to Know Before Buying a Car?
  
• How to Get Auto Insurance Coverage
  
• Frequently Asked Questions
  

Navigating the process of purchasing a new car can be confusing, but luckily the rules surrounding insurance are pretty simple. In almost all states, you need auto insurance before buying a car; it’s illegal to drive your new vehicle off the lot without being adequately insured.

MoneyGeek explored some of the most important things drivers should know before buying and insuring a new vehicle.

You don’t have to have insurance while you’re shopping for a car, but you will need to secure insurance coverage before you can take possession of your new vehicle. How much insurance you need depends on where you live and your vehicle. In general, we recommend purchasing as much car insurance as you can comfortably afford. Even if you’re on a budget, you should consider adding comprehensive and collision insurance to your policy.

If you already have auto insurance, there’s typically a grace period of seven to 30 days before you need to report your new car to your insurance company and add it to your policy. If you don’t have any car insurance, you’ll need to purchase a policy before you’re legally allowed to drive your car.

Technically speaking, some car dealers may allow customers to purchase a car without having an active auto insurance policy. That said, you’re still not allowed to drive the car off the lot until it’s insured.

Buying car insurance for a new vehicle can be tricky. Here are some answers to the most commonly asked questions related to insurance for new cars to make the process easier.