If you're in the market for a new car, it's essential to consider obtaining car insurance before purchasing. Carrying insurance is a legal requirement in most states and protects you financially in case of an accident or theft. However, getting car insurance before buying a car may seem daunting, especially for first-time buyers.
In this guide, we'll walk you through the necessary steps to ensure that you are adequately covered and can make an informed decision on your car insurance policy.
If you're a first-time car insurance buyer, don't worry! Getting insurance is quick and hassle-free. You can obtain coverage on the same day from many insurance providers, and it will take effect once you make your initial payment.
Find Cheap InsuranceHow It Works: Getting Insurance Before a Car
When you are searching for the perfect car, insurance may not be at the forefront of your mind. You might wonder how you can possibly be insured to drive a vehicle that doesn't exist yet.
While it's true that insurance policies require a unique vehicle identification number (VIN), this doesn't mean you can't start comparing good coverage at affordable rates the same time you're searching for a new ride. This way you won't be rushed; you can select reliable vehicle coverage from an insurer who offers your lowest rates based on the makes and models you're interested in buying.
Then, when you have found your dream car and are ready to buy it, you can provide the make and model to insurance companies for a proper estimate.
Finally, once you've bought the vehicle, you can provide the VIN to secure the coverage and settle on a new insurance policy before driving the car off the lot.
Step-by-Step: Getting Car Insurance Before Buying a Car
If you're planning on purchasing a car soon, it's essential to consider insurance coverage early in the process. Here's a step-by-step guide on how to obtain car insurance before buying a car.
Know your coverage needs.
Before shopping for insurance, assess your coverage needs. Consider your driving habits, whether or not you might qualify for a low-mileage discount, and your budget (e.g., how much you have saved for a down payment on the insurance).
Research insurance providers.
Look into different insurance providers and compare their coverage levels and pricing. Consider the company's reputation, customer service ratings, and claims process.
Get car insurance quotes.
Once you've narrowed down your list of car insurers, request quotes from each. Be sure to provide accurate information about yourself and the car you're likely to purchase to get an accurate quote.
Choose an insurer.
Review the quotes and select the company that best fits your requirements. A word of advice: The cheapest policy is not always best. A better choice could be the policy with a slightly higher premium but lower deductibles so a single incident doesn't wipe out your savings.
Provide the necessary information.
After selecting your policy, provide the insurer the necessary information, including the make and model of the car you plan to purchase.
Make your initial payment.
Make your initial payment to activate your insurance policy. This will include a sizeable down payment unless you choose a plan that delays the down payment by spreading it over many months.
Provide the VIN.
After you've purchased your car, give the insurance company the VIN to ensure that your policy is updated and covers the correct vehicle.
By following those steps, you can obtain car insurance before buying a car, giving you peace of mind and immediate protection on the road.
Completing the Car Purchase and the Insurance Policy
After taking all the essential steps in this guide, you can now complete the purchase of your car and the insurance policy. Some things to take into consideration are as follows.
Pick the best car insurance company.
In picking out the insurance company that will best suit your needs, you can base it on the estimates you have secured, together with customer reviews about the insurers and their satisfaction ratings. BindRight's quick and easy comparison tool can show you a short list of quality options wherever you are (works in any browser).
Obtain the vehicle identification number (VIN).
Be sure to obtain your new car's vehicle identification number, as this will be required in buying a policy from your choice of an insurance company. The VIN will appear on various paperwork you get from the dealer.
Establish a timetable for the start of your auto insurance policy.
Before you take ownership of your new car, ensure that your insurance policy is established. You do not want to climb behind the wheel of your new ride, ready to drive, only to be delayed by insurance. Your insurer will provide confirmation of coverage to you that you will show the car dealer. Then nothing stands between you, your new car, and the open road!
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