Is Car Insurance a Must-Have to Buy a Car?

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car insurance

Before getting behind the wheels, you need to have auto insurance irrespective of whether you are buying a new or a used car. The amount involved under the liability car insurance that is required in a state would be the minimum you will require.

Do you need car insurance to buy a car? The answer is yes and the following are the reasons that lurk behind it all:

Trading in a car

It sometimes takes 30 days for the auto insurance coverage on the car that you are trading would usually transfer to the new car. You will most likely have to apply for a new car a month later if you had an earlier liability, collision and comprehensive coverage that is there in your previous car. The following would be the things that you need to find out from your car insurance agent:

  • For avoiding some unwanted situations, how much the car that you are planning to buy will cost you to insure?
  • What is the time frame for notifying the agent about your buying decision and getting the insurance policy on your car?

If you fail to inform your agent about the purchase, then you need to call them as soon as you have bought your new car. You can usually face penalties and end up driving without insurance on it if you simply forget the deadline to inform the insurer about this.

Here the types of coverage that you had on your older car will extend to your new one only temporarily. If you bear only the liability insurance, this will get extended to the new car. You also need to have comprehensive auto insurance as if your car gets stolen the day next, then you will be lacking the right insurance if your car gets stolen here.

Buy a new car without trading one

new car

Before driving your new car home, you must have the auto insurance policy well in place irrespective of whether you are buying a new one or just making another addition. Have the VIN of the vehicle in hand before calling your agent. You must have a good knowledge of the car insurance types when you land up in a call. The day when you go ahead to purchase, your car the agent will set up the new policy for the start.

You might also well look deep in the comprehensive and collision coverage if you are trying to buy a brand-new car or a new used car. You can well claim your insurance under the circumstances if your car gets stolen or damaged due to an accident caused by you. If your car is subjected to theft or you have met with an accident where the car is damaged, without a comprehensive and collision, things will be completely on your shoulders to take care of.

The rates that are involved in car insurance is based on the assessment of the risk. The insurance companies usually vary their rate for competing with the other insurance companies. The comparison is also based on the assessment of risks that are posed by a particular driver who is driving a particular car. This is done mainly due to insuring higher risked drivers at these rates and also as it does not make any sense in buying a business with the lowered rates of car insurance.

The rates mainly depend on the type of car you are driving. Higher rates are imposed on mainly the sports car, high-end cars and also the cars with greater risks of being a subject to theft. So, overall you need to have the best car insurance with you to protect you from potential damage and other situations.

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