Talking With Insurance Companies

If you are planning on shopping for a car soon and are wondering whether or not you need auto insurance to do this, you should understand that the answer depends on your situation. Auto insurance is something that you must legally have when you drive, and here are a few things you should know if you are planning on buying a car.

Your Current Policy Will Cover It If You Have Insurance

If you have another car and are getting a second car or you are trading your car in for a different one, you probably already have car insurance on the car you own. If so, the policy you currently have will cover the car you buy, which means you will not have to call your insurance agent from the car lot to add the new car to your policy. You will need to call the insurance agent within the next day or two though, as your policy will only offer protection for a short while. This is because your current policy will not yet have your new car listed on it. Even though the new car is not on your policy, your insurance company would offer coverage for it, simply so that you can drive from the car lot to your house.

You Will Need a Policy If You Do Not Have Insurance

For people who do not currently have car insurance, the requirements may be a little different; however, this will depend on whether you get a loan to buy the car or not. If you do not have car insurance at this time, and if you get a loan to buy your new car, you will not be able to drive away from the car dealership without proof of insurance. In other words, you would have to contact an insurance company and get a policy started before you can bring your new car home.

Now, if you are not getting a loan on the car, you probably will not have to do this. Car lenders require insurance for borrowers, but if you do not have a car lender, then you will not have someone telling you to buy insurance. You should, however, buy insurance as soon as you arrive home with your car, as having insurance is a legal requirement and your only protection of the vehicle.

To learn more about insurance quotes or requirements, contact an insurance agent today.