Are you ready to buy a vehicle? If so, it might be because your car is shot or because you do not own a car yet. In either case, when you buy a vehicle from a dealership, you need to have auto insurance coverage. Some people do not understand why this is a requirement. Others do not understand how to buy a policy when purchasing a car. Here are three things you should know about auto insurance if you are preparing to buy a car from a dealership.
Your Lender Requires Full-Coverage Insurance
The first thing to know is that you must have full coverage auto insurance if you finance your car purchase. Financing a car means that you borrow money from an auto lender to pay for the vehicle. You will make payments to the lender over time to repay the money you borrowed, but you must keep insurance on the vehicle until you pay off the loan. Your lender will not let you drive the car without having insurance on it, as your insurance protects the money they provided for your financing.
The Dealership Requires Proof of Insurance
Secondly, when you purchase a car from a dealership, they will not let you leave the parking lot until you have proof of insurance coverage. If you pay cash for the car, the dealership might not require auto insurance. If you use an auto loan lender to make the purchase, the dealer cannot let you leave without insurance coverage.
You Can Purchase a Policy Before You Shop or During Your Purchase
If you currently do not have auto insurance, you will need to buy a policy before leaving the dealership with your new vehicle. You can buy a policy while you are there or before you start car shopping. Buying a policy before you shop is the easiest option, as you will have more time to shop for the insurance. To do this, call an auto insurance agent and ask for a quote. When talking to the agent, make sure you tell them that you are in the process of searching for a car to buy. They can get a policy started for you, which will help you get through the dealership faster.
Getting auto insurance is vital when buying a car, even if you pay cash for the vehicle. Auto insurance protects you against damages and lawsuits, and therefore, it is necessary. If you need auto insurance before you shop for a car, contact a personal auto insurance agent today.Share