Before walking onto a car lot with the intent of driving away with the vehicle of your dreams, be prepared with the proper insurance policy. Having the correct car insurance coverage for your state is an essential part of the process, because without it, the car stays put. Show It's also important to get the right policy for your situation so you're not under- or over-covered. Here's what you need to know. Do You Need Car Insurance to Buy a Car?You may be able to buy a car without having an insurance policy in place, but it's illegal in most states to get behind the wheel and drive without having at least a minimum amount of coverage in place. In fact, you will need to show the seller proof of insurance before leaving the lot. The only exceptions are Virginia and New Hampshire. If you don't have car insurance in Virginia, you will need to pay an uninsured motor vehicle fee to the state first; in New Hampshire, you'll have to post a cash bond. In both states, though, being insured is best because it can help protect your finances if you're involved in a crash. Can You Transfer an Existing Car Insurance Policy?If you have an insurance policy on your current vehicle, you may be able to add your new car to it. The process is simple: Just call your insurer company and make the transfer over the phone with help from a representative. You may even be able to do it on the company's website. If you're financing the vehicle, you'll need to provide the insurance company with the lender's address and phone number, so have that information ready to go. To avoid lapses in coverage, contact your insurance company as soon as you buy a new car. Some insurance companies offer a grace period for new cars, but it depends on your state. If there is a grace period where you live, you'll have a number of days to drive the new car before adding it to your existing policy. How to Get Car Insurance if You Don't Have an Existing PolicyNo policy in place? That's OK; start the car insurance process now. Gather as many of the following pieces of information as possible:
Of course you may not know the car you want until you're at the lot, so have everything else but the vehicle information. You can get the insurance policy the same day you make the purchase. How to Choose the Right Car Insurance PolicyThere are several kinds of car insurance coverage. Some are required, others are recommended:
Choose carefully. If you don't have the right policy, you can be out a huge sum of money. Being sufficiently insured will give you peace of mind that if something does happen to you, your passengers, your car or others, you'll have some financial protection. On the other hand, carrying excessive coverage will cause you to overpay. To get the right car insurance policy, make sure you:
Once you choose an insurance company, you can call and talk to an agent or purchase your policy online. You should have a good idea of what you want, but a representative can help you be sure you're properly covered. The company will then send you a summary of your coverage and your insurance cards. Always keep proof of your insurance with you. How to Save Money on Car InsuranceCar insurance can be a significant item in your budget, so take steps to reduce costs without sacrificing necessary coverage. Some factors are not under your control, such as your age and driving record, but there are some things you can do to reduce the cost of car insurance, including:
It's smart to plan ahead and secure insurance before you start shopping for a car. After all, you don't want to leave that beautiful set of wheels behind because you can't show proof of coverage. |