When you buy a new car, do you have to buy insurance before driving from the lot?

Question

When you buy a new car, do you have to buy insurance before driving from the lot?

Answer 1

If your paying for the car in full no. If your financing yes. But if you need insurance most car lots provide an onsite insurance broker if needed. My question would be. Why would you not have insurance before driving a car off the lot? Protect your investment!

Answer 2

Yes.

Answer 3

The answer to this question can vary.... BUT answering the questions below help to answer your question:

1) Do you already have an existing auto policy?

2) Is the vehicle going to be financed or are you paying cash?

If you answered no to the first question then you would have to get the car insured before you can drive it off the lot UNLESS the dealer would allow you to go on the dealer's insurance with a dealer license plate & tags.

If you answered yes to the first question then there may be coverage on your existing policy but my advise is to call your insurance company to be sure that coverage extends to any newly acquired vehicle  (The company that I work for and in the state that I work legally extends coverage for comp and collision to the newly acquired car for up to 5 days and liability for up to 14 days).

For the 2nd question:

If you are financing the vehicle MOST loan companies or lease companies require insurance on the vehicle before you drive it off the lot.

If you are paying cash and already have an existing policy then they might just let you take it and it is up to you to contact your insurance company to add the car onto the existing policy.

Hope this helps!

Answer 4

You must show proof of insurance if you are financing the vehicle.

Answer 5

ABSOLUTELY!!!

Answer 6

I cant speak for every insurance but I had State Farm and Allstate and you do NOT need to have insurance for the new car BEFORE you leave the lot.  When I bought my car with state farm and all state they both covered any damages until I got insurance for it.  I had to get insurance within 72 hours of the sale.