Do You Get Auto Insurance before or after a Car Purchase?
Updated: Apr 3
The search for the ideal car, the test drives, and the aroma of a brand-new car make buying a car, whether new or old, a thrilling experience. The paperwork is the only aspect of this experience that is unappealing.
Whether it is registering the automobile or obtaining auto insurance, you must complete a number of procedures that might be challenging and stressful. You must have automobile insurance to keep you, your family, and other drivers on the road safe.
In the event of an accident, insurance coverage also safeguards your financial security. So when is the ideal time to purchase insurance for it? Continue reading to find out.
Looking for Car Insurance
Before you buy a car, you must start looking for auto insurance. To determine if you can pay the car’s insurance premium or not, you should obtain estimated or, preferable, correct insurance quotes.
Buying a new car only to discover later that you cannot get insurance for it is really aggravating. You can find excellent savings by looking for auto insurance quotes online, so take your time looking through different insurance providers.
You must give the insurance company the vehicle identification number to obtain customized insurance coverage.
Purchasing Your Car at a Dealership
Before letting you drive your new automobile off their lot, many dealerships want evidence of insurance. They need to see the proof of insurance—even if you bought it in cash—to make sure you are protected while driving.
It’s more likely that the dealership won’t let you drive your automobile off their lot without proof of insurance if they contributed to paying for it. Before you purchase a car from a dealership, you must determine your insurance coverage.
If you don’t have proof of insurance, your other choice is to leave your new automobile on the dealership’s lot. While purchasing insurance through the dealership may be a convenient alternative, it’s possible that you won’t receive the best bargain.
Obtaining a Loan
Lending is a popular way to finance car purchases. You’ll most likely need to get insurance before applying for a loan from a lender. While lenders want many coverage plans—including liability, collision coverage, and comprehensive coverage—dealerships merely ask for proof of insurance.
Based on the car model and insurance coverage, the lender, whether a bank or other financial institution, will provide you with an estimate for a car loan.
Since the lender owns the automobile until you pay off the loan, they demand comprehensive insurance coverage plans to guarantee that the car is insured in the event of an accident.
Purchasing from a Private Seller
Almost exclusively in this situation, you can purchase insurance after purchasing a vehicle. Only when you pay for it in cash is proof of insurance required for the transaction between you and the vendor.
Even if you are borrowing money to buy an automobile from a private seller, the lender, not the seller, is the one who needs proof of insurance.
However, if you choose to drive your new automobile home without insurance, your finances and well-being are in danger.
The best action is to purchase insurance before purchasing your new vehicle. Driving your new car without insurance is quite dangerous, even if you are only driving a few streets. Anything can happen at this time, and you will suffer financially as a result.
Additionally, lenders and dealerships won’t let you purchase a car, or at the very least drive it, without insurance.
Cooke Insurance is your best choice if you need car insurance in Saskatoon! We’re a three-generation general insurance broker and SGI Motor Licence Issuer. Contact us anytime for personal, commercial, and specialty insurance services.