Do you need to have full coverage insurance before driving a new car?

Question

The car will be financed of course. I'm trying to figure out if I will need coverage before I drive it off the lot, or if there is a grace period.

Answer 1

The dealer and your lienholder will NOT allow you to leave with the vehicle without proof of valid insurance. There is ABSOLUTELY NO grace period. You will need to secure car insurance before you purchase the vehicle. Most of the time you can do so while you are at the dealership, just make sure you know who you will be insuring with, and get their 800 number so they can write you your policy while you are waiting at the dealership.

The reason the dealer and the lienholder won't release the car to you until you have insurance - is because they don't want to be stuck with any type of responsibility if you get in a car accident once you have taken possession - especially your lienholder.

Answer 2

Repeat after me: "There is no such thing as a grace period. I will not be automatically covered for 30 days, 7 days, 3 days or any other time period after buying a new car by the new car lot, or anyone else. I realize I can not drive in my state without insurance, and if I don't sign up for insurance before I drive my new car, I am not covered. Therefore I will tell my agent when I am looking for a new car, and will call him from the lot after I sign the papers, giving him the specifics on the car I bought, and ask him to fax a proof of insurance to the dealer. I will not drive until I have this document in my hand. Now I will be both legal, and by having full coverage, keep the finance company happy. I will also look into GAP insurance in case I happen to have a wreck, which will then pay the difference between what the car is worth and the payoff price, and at least consider getting it. If I choose not to, I promise not to ask here why they aren't paying my car off."

Answer 3

You need the insurance. You can usually have the dealer fax the info to your agent, and then get them to fax back the coverage. Anytime you drive a car, you need insurance, and with a new, financed, car, sometimes they won't even let you take it before it's covered. Best be safe. What if someone creamed you on the way to the insurance office? I know someone it happened to. Took the front off her car; and she ended up IN JAIL for two days because she had no coverage!

Answer 4

You will need to at least have contacted the insurance company to let them know you are buying the car. The financier will probably require the name and number of your insurance agent, and an agreement to put full coverage on it within a certain period of time.... other lenders may be more stringent than this of course.... it's up to them... after all... until you pay off the loan, it's technically their car.

Answer 5

You've got 14 days grace period to get it on your policy effective the day you got the car. But the paperwork at the dealer usually means getting an ID card (proof of the car being on the policy) and binder (proof that the loan company is on the policy) before they complete the sale. If there was no loan, no binder is necessary and full coverage isn't necessary. Playing the odds, you'll save money in the long run using the highest deductible the loan company will allow.

Answer 6

Your comprehensive insurance should cover damage such as this. You will have your deductible taken out of what the payment will be. If this is a tree from property you are renting the landlord should have insurance for homeowners to cover it. You should also ask insurance company for renters insurance! That will cover items in your apartment and is a very low price. It will also lower your insurance premium for having multiple insurance.

Answer 7

get a car insurance policy is your choice to make...you are not required to get a full coverage even if you have a new car, unless you really need to have one...

Shop around the net and ask for quotes maybe youll get a cheap car insurance offer... try sites like this for easy search http://www.nightbirdssolutions.com/

Answer 8

Yes the bank requires you carry full coverage when you still own on the car

Answer 9

You had better call your insurance company to
check what to do. bettyk

Answer 10

if your going to finance it you will