When purchasing a new vehicle, the dealer probably won’t let you take it off the lot without an auto insurance policy, and lenders usually require drivers to carry comprehensive and collision coverage as well. In some situations, your current auto insurance policy may be enough, but in many others, you’ll need to buy coverage before taking the new vehicle home. Understanding when to shop for quotes will help avoid unnecessary headaches and overpaying for coverage.

When Do You Need Auto Insurance for a New Car?

1. When Replacing an Old Car

If you’re trading in an old vehicle and driving off in a replacement, an existing policy may provide coverage for a limited time. However, these grace periods vary from policy to policy, so read the fine print before trying to use your existing insurance to cover a new vehicle. If you’re still not sure whether you have a grace period, ask the insurance agent to review the policy.

2. When Adding a New Car

The grace period for new vehicle purchases may also cover additions to your lineup. If you’re buying a car for a spouse or a child, your existing policy’s grace period should extend coverage to the new acquisition. However, if the policy doesn’t include a grace period, make sure you have liability coverage before driving away.

3. When Buying Your First Car

If you don’t already own a car, you’ll have to purchase auto insurance before taking possession of the vehicle. This requirement protects the dealer, lender, and you if you’re involved in an accident on the way home.

If you’re buying a new vehicle, the experienced agents at Schaller & Thomas Family Insurance offer a wide range of coverage options to protect your most valuable assets. They have over 20 years of experience serving drivers throughout Arizona’s West Valley and are dedicated to helping individuals find coverage at affordable rates. Visit their website for more on their auto insurance options, or call (623) 580-8688 to request a free quote today.