New Car Insurance First

Reader question:

Do I have to take out a car insurance policy before I buy a new car?

Randy

Yep.

Although technically it depends on your particular situation. If this is the first time that you are buying a car, or if you were previously uninsured for whatever reason, then you will have to purchase new car insurance coverage before you can take your car out of the dealership. In order for you to go home with your new car, not only will you be required to purchase your state’s minimum liability insurance, but you will also have to purchase comprehensive and collision coverage.

This does not apply to you if you already had an insurance policy when you went to buy the car, even if the car named on the insurance policy is not the new car you are buying. There’s no need to call from the lot to add your car. You have a period of thirty days in which you can add your new car on, and during that time it will be covered as though it had already been added.

Cheers,

Fashun Guadarrama.