Do I Need to Get Insurance Immediately after Buying a New Car

Car insurance can be tricky to understand, and many people struggle to choose the appropriate coverage for their vehicle. Things get trickier when circumstances change and you’ve purchased a new vehicle. Do you need to buy new insurance, or is your new car automatically covered? Keep reading to find out.

Getting Car Insurance after Purchasing a New Vehicle

If you currently have auto insurance for another vehicle, you may not need to purchase another policy right away. Most insurance providers provide a brief term of coverage for a new vehicle. However, depending on the dealership and purchasing your new vehicle with a loan, you may have to provide evidence of insurance before bringing your new car home.

When purchasing a car from a private seller, they will not typically ask for evidence of insurance before you leave with the new automobile. However, bear in mind that Florida requires vehicle owners to have a certain amount of coverage. Driving without insurance is unlawful and may cost you much money in court fines and even more if you get into an accident.

Getting Proof of Insurance for a New Car

If you are purchasing a vehicle from a dealership, they will need evidence of insurance before allowing you to leave with the vehicle. In certain instances, you may be able to contact an insurance agent directly from the dealership to get coverage. In addition, if you have insurance on another car, you may be able to provide evidence of that insurance. Whether you are purchasing a new or used car, this is generally a necessity.

Furthermore, even if you opt to lease, you will need to provide evidence of insurance. Most insurance providers will give you estimates quickly, and you can typically obtain new insurance within 24 hours or less.

Understand If Your Current Car Insurance Plan Has Grace Period

It is usually a good idea to check your policy to determine whether and for how long your grace period applies to purchasing a car. It is essential to remember that even if you have a grace period, it only applies to the amount of coverage you had on your prior car.

If you are purchasing a higher-value car or taking out a loan, you may be required to have full coverage, which includes comprehensive and collision coverage. Whereas basic insurance protects you if you cause damage to someone else's car in an accident, comprehensive coverage protects you as well as your damages and medical expenses.

Update Your Insurance When Buying a New Car

If you already have insurance and want to keep it, you must inform your provider to purchase a new vehicle. They will ask for specific details regarding your car, such as vehicle identification number (VIN) and purchase price. If you are purchasing new insurance from a new carrier, you may be required to submit extra information, including your name, address, and your driving record.

Your insurance provider will compute your rates once you supply them with the specifics of the car you're purchasing. Your premium may rise or fall depending on the worth of your new automobile as well as the value of your old vehicle. The good news is that you are not required to remain with your existing provider. You may always switch providers if they increase your prices too much or if you want to check what other businesses have to offer.

All you need is the vehicle's VIN, and you may browse around for quotes to get the best prices. If you decide to switch providers, make sure you purchase your new insurance before canceling your existing one. Not only do you want to avoid driving uninsured, but new insurance providers may charge you more if you have a gap in coverage since they perceive you to be a greater risk.

Final Thoughts

It is best to get your insurance coverage before purchasing a new vehicle. That guarantees that you know what to anticipate in terms of costs, as well as safeguarding you when driving your car home. It also allows you to compare costs before deciding on a policy.

Give yourself peace of mind by having the best car insurance in Sanford, FL. At Sanford Insurance Center Inc, we have all the insurance that you need. Place a call with us today and request free quotes!