A Quick Guide to Getting Automobile Insurance after Buying a Car

Jun 15, 2022

Business Insurance

A Quick Guide to Getting Automobile Insurance after Buying a Car

If you’re considering buying a new automobile, you should also be thinking about its insurance needs. In fact, to ensure you’re sufficiently covered, consider buying an auto insurance policy before you get your new car. Read on to learn more about purchasing auto insurance after purchasing a new car.

How Soon After Purchasing a Car Should You Obtain Auto Insurance?

Always get auto insurance before you purchase a new vehicle. However, if you already carry auto insurance for your other vehicle, your auto insurer may cover your new car for a brief grace period.  If your car purchase is being financed by a lender and depending on the requirements of the dealership, you may have to present proof that you have an auto policy before you drive off with your new car. Some private sellers may not demand proof of insurance, but driving without auto insurance coverage is illegal. Besides, if you're in an auto accident, you'll have to pay out-of-pocket for the damage and the associated legal costs.

Getting Proper Proof of Insurance for a New Car

If the dealership requires you to present proof of insurance coverage before you drive off with the car, you can get the car insured right at the dealership by calling an insurance representative. Conversely, if you own a different vehicle that’s insured, you can present proof of that policy. You’ll typically be required to provide proof of insurance regardless of whether you’re purchasing a new or used vehicle. You’ll also need to present proof of insurance if you’re leasing the vehicle.

How Do I Know If I Have an Auto Insurance Grace Period?

You should read your auto insurance policy’s fine print to find out if it offers a grace period as well as what it covers. The grace period is typically from a week to a month and varies by insurers. Remember that during the grace period, your policy will provide the kind of coverage if it did for your previous car. If you’re acquiring a new car through a loan, your lender may require you to get full coverage, including collision and comprehensive coverage.

How Do You Update Your Insurance When Buying a New Car?

If you already have auto insurance and you plan to stick to your insurer, you should inform them that you’re getting a new vehicle. You will then need to provide certain information about the new vehicle, including:

  • Purchase price
  • VIN (Vehicle Identification Number)

If you've opted for a new insurance company, you'll need to provide additional information, including:

  • Your driving record
  • Your address
  • Your name

Once you've presented this information to your insurer, they will calculate your insurance rates. Your premium may decrease or increase depending on the value of your previous car and your new car. If your insurer raises your premiums too much, you should shop around for better deals.

Shop Around and Find the Auto Insurance Best Rates

Get quotes from various providers if you’re looking for an insurer for vehicles you want to buy. You can choose between reaching out to insurers for quotes or having an independent agent help you get multiple quotes from various insurance companies. To get an accurate quote, provide the following information:

  • The full names of each driver on the policy
  • VINs of all the vehicles on your policy
  • The birthdays of every driver on the policy
  • The social security numbers of each driver on the policy
  • Your address
  • A print of your declarations page from the previous insurer

How to Get the Right Auto Insurance Plan

If you need auto insurance for a new car, reach out to us at Spotlight Insurance Agency. As an independent insurance agency, we will help you get customized and cost-effective new car insurance in Denver, Co. Contact us today.

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