Do You Need Insurance To Buy A CarDo You Need Insurance To Buy A Car

People often find themselves in a dilemma right before purchasing a car – what to buy first, the automobile insurance or the car? Technically, one can purchase a car even without an automobile insurance policy. However, the idea of purchasing a policy before you get the car stems from the fact that you would have to drive the vehicle home from the dealer. What if you get into an accident during that commute?

In Canada, you would require minimum coverage for third-party liability every time you sit behind the wheels. Therefore, from a legal perspective, you cannot drive your car without minimal coverage in place. Therefore, it makes sense to purchase your car insurance policy before buying a new vehicle.

Now, you might be wondering about the process of purchasing an insurance policy without owning a car. In cases like these, it is logical to consult insurance specialists at Surex. Before you get car insurance in Toronto, it would be wise to seek professional advice from the experts to ensure that you're on the right track.

Should You Drive A New Car Without Insurance Coverage?

Once you purchase a brand new car, you would have to drive it away from the lot. In these cases, you should not sit behind the wheels if your existing policy does not cover the newly purchased car. Besides the government mandates regarding third-party liability coverage, you would like to protect your new car from collisions or other perils as well.

Therefore, it would be wise to get adequate coverage even before you take the car away from the showroom. If you are caught driving a new car without minimal coverage, your license may get suspended. Besides, accidents come without prior warning.

Moreover, when you drive without insurance, there would be a gap in the coverage record. After a few days, when you reach out to the insurers, they would raise the premium owing to your risk potential. In a nutshell, it'd be wise to get insurance coverage just before purchasing your car.

What Is The Right Time To Purchase Insurance For A New Car?

As a thumb rule, you should have automobile insurance in place by the time you drive the new car home. However, you might find yourself in a situation where you have an existing policy, and you want to purchase a new car.

Some insurers include a grace period to cover newly purchased cars in their active policies. This indicates that the present policy would automatically cover the new car before it is consciously included in the policy. Therefore, before you purchase a new car, check with your insurer whether they provide this type of coverage. Mostly, these are temporary coverages that last between one to four weeks. Within this time, the car owner should officially include the new car in the existing policy. Failure to do so would render your new car without coverage.

If your current policy covers the new vehicle, you would have protection while driving the car home from the showroom. In these cases, make sure to inform your insurer about the new purchase at the earliest.

Certain clauses often apply to the temporary coverage. For instance, the insurance company might provide coverage only when you replace the current car with the new one. You won’t enjoy the benefits if you're adding a new car to the policy in these situations. Therefore, it would be necessary to get a new one.

What To Do If You Have An Existing Policy?

When you approach an insurance company, they will request you for the following information, and you need to furnish as many details as possible regarding the same:

VINs for the cars

Names of all the drivers at your home and their birthdays

Social security and driving license numbers of the drivers at your home

The declaration page of your previous auto insurance policy

Your address; along with the address where you would garage the new car

How Can You Purchase Automobile Insurance Without A Car?

Potential car owners often encounter a situation where they neither have a car nor an existing policy in place. Even in these cases, it is possible to purchase automobile insurance for the new vehicle. A reputable insurance specialist will guide you regarding the correct approach under these circumstances. In most cases, the insurers ask for particulars about the vehicle, including the make and model you wish to purchase.

In case you are dealing with a broker, you may provide all the above-mentioned information to them. However, make sure not to disclose the VIN of the car. Then, as soon as you choose a vehicle, you can get the coverage ready. This way, you can purchase both the policy and car on the same day and have the coverage in place as you drive the vehicle home.

If you're absolutely sure about the car you're going to buy, get the VIN from the seller or the dealer. This will help you purchase the car beforehand. However, you need to adjust the first day of the policy to the date when you drive it home. In this regard, you should know that it's technically possible to purchase a policy months before owning a car. In some cases, you might also be eligible for a discount when you purchase the policy beforehand.

Endnote

Although there’s no mandate governing whether you should purchase your car or the policy first, it makes sense to arrange for the policy beforehand. In most cases, car owners make both these purchases on the same day. Insurance specialists recommend their clients get adequate coverage; beyond the mandatory liability policy.

Therefore, you should consider purchasing a comprehensive plan or include collision, damage, and physical injury coverage in the same policy. After all, you cannot afford to risk your newly purchased car while you drive it home.

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