If you buy a vehicle from a dealer, does that car have some kind of insurance for at least a few days?

Question

I bought a car from a delaer yesterday. I don't have time to go and take care of the full coverage auto insurance on this car until lext week. I asked a dealer what happens if the car gets in accident. They said the car does not have any coverage and I need to take care of the insurane right away.

Someone told me that, actulally, the dealer has coverage on the vehicle for 3,4 days after a cutomer buys it and drive away with it. They just don't want you to know that because they don't want to pay in case of accident. Is that true?

Thanks.

Answer 1

The dealership has no such insurance....you must have your own in place. The dealership should have a garage policy for test drives and such but beyond that the exepnse would be ASTRONOMICAL!!

I should know...I own a dealership

Brant Automotive Group Inc.

Answer 2

Yea, it realy depends on the dealer... I live in New Jersey, and it's not required here (the dealer provided insurance for a few days that is), not sure if it is anywhere. But when I got a new car last summer, they asked me if i wanted their insurance for 10 days just to make sure i'd be able to get insurance on my own...

if the dealer said no, then it's no, because they have to pay for that insurance themselves... it's not automatic...

Try giving your auto insurance company a call, they might give you coverage for a week with the new car befor seeing it...

Answer 3

In order not to take any risk, it is better to cover the vehicle you
just bought with at least a third party Insurance, before you
drive it home. Most car dealers don't insure the used car with
insurance, unless a particular car which is taken in by the car
dealer has unexpired insurance from the seller who then will
cancel it when his car is sold off to the dealer.
In any case, it is very quick and easy to renew or buy new
car insurance from any authorised agents in town.
Please remember, once the used car is sold to you, it is your
responsibility to have it insured as required by the law.

Answer 4

No this is not true. If they told you it has no coverage then they did not set up binder coverage for the vehicle. Once you purchase the vehicle, the dealership has no obligation to protect the vehicle with insurance. The dealer policy did insure this vehicle but once you purchased the vehicle, this policy no longer applies to the vehicle under their Business Auto Policy as it is no longer in the care, custody & control of the dealership.

Answer 5

Most dealers will not allow you to drive off the lot without insurance. To do so in my state would be against the law.
Even if you don't personally own a vehicle, you still have to be an insured motorist.

Answer 6

I've never heard of a dealer having insurance to cover you after you buy the car and drive the car off the lot.

Usually getting insurance transferred is as simple as calling your agent and giving him or her the updated info about the new car.

If you don't have insurance right now do yourself (and the rest of us) a favor... Don't drive until your covered, PLEASE!!

Answer 7

No, you need insurance immediatly. You can call your insurance company on the phone to set it up now and go next week to sign papers(you have 1 month after you set it up to get the papers back to them) you'll be covered from today.

Answer 8

I doubt it. That would be a lot of expense on the dealer. You need to contact your own agent or company.

Answer 9

I doubt it. When I bought my car, I had to show proof of insurance.

Answer 10

You need to get insurance right away.