auto insurance required when buy new car???

Question

I live in california and recently went to the dealer bought a brand new car, and the saleman told me that I need to buy the insurance for my new car right at the dealer otherwise he can not let me drive that car home from the dealer eventhough I have full insurance coverage on my old car(current car)? He ask me to get the insurance coverage that they offer for 30 days? Is this right or it is a scam to get more money from me? Is it true that for everyone who buy new car to get the insurace coverage before they can drive it home even if you have full coverage insrurace on your old car?
Thanks

Answer 1

He's scamming you. AS long as you have a notification from your insurance sompany that they are covering the new vehicle, you are gold.

I'd have a long talk with the manager, and the customer service people for the company brand you are buying (Ford, Chevy, whoever)

Answer 2

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Answer 3

He IS required to ensure that the car is covered from the moment you drive it off the lot. Not all insurances automatically cover the new car..... so they cant let you leave without knowing it for sure. If you use a smaller insurance company (basically one that is closed at the time you buy the car) they may not let you leave without paying that premium.

However this is NOT FULL COVERAGE INSURANCE!! You bought an insurance that ONLY covers the car itself if it is damaged- no liability, no medical, no nothing.

If you use progresssive, geico, all state, etc, they shouold have a 24 hour line you can call and add the car to your policy before driving off the lot-- they can even fax an iD card ot the dealership.

Answer 4

I think this is a scam, or you have really bad credit. I went to a dealer 12/27/06, provided no proof of insurance...they did call the insurance company and verify the insurance that I had to purchase before the loan. I drove the car home the same day. But, I did have a credit score over 800, at that time. I live in Ohio, maybe there are different laws where you live.

Answer 5

It is definitely a scam. Your Full Coverage policy will extend coverage for your new car for a matter of hours. What you need to do is call your Insurance Agent and tell them that you are going to buy the car, give them the year, make, model and VIN# for the car; then the coverage will be automatically bound and you can tell the Car Salesman aka. Lot lizard to pound sand.

If you financed the car through the dealership, the dealership is the lien holder and they may want to make sure that you have the proper insurance coverage on their property before you drive the car off of their lot.

Good Luck!

Answer 6

I recommend you this site to get quotes - INSURANCEGRADES.INFO-

RE Auto insurance required when buy new car???

I live in california and recently went to the dealer bought a brand new car, and the saleman told me that I need to buy the insurance for my new car right at the dealer otherwise he can not let me drive that car home from the dealer eventhough I have full insurance coverage on my old car(current car)? He ask me to get the insurance coverage that they offer for 30 days? Is this right or it is a scam to get more money from me? Is it true that for everyone who buy new car to get the insurace coverage before they can drive it home even if you have full coverage insrurace on your old car?
Thanks

Answer 7

It is true that you have to secure insurance before taking the car, but you don't have to buy theirs. Most insurance companies can secure it over the phone while others will transfer automatically once you buy the car.

Call your insurance agency to find the facts. If you find that the dealer tried to scam you, I would cut the deal all together and go somewhere's else.

Answer 8

He is Full of S&^T he is scamming you. Your car is covered for 30 days by your insurance company. Take that dude to the dealer and have his hands slapped. The dealers insurance is something the salesman gets a piece of the pie. Call your insurance company to get the full details butI would go to another dealer and ask them the same question.

Answer 9

You need insurance yes, but his particular brand...no. If you furnish proof of insurance that should be sufficient... Call your provider in his presence and have the new car added, old car deleted. You should have a policy number etc for your current insurance provider.

Answer 10

The finance company won't let you buy it without insurance since they are paying for it they need to know that you have coverage in case of an accident.