In most U.S. states, you’ll be required to show proof of liability insurance in order to register your vehicle and get license plates—which means you’ll need to secure an auto insurance policy before signing the dotted line and driving your vehicle home.
Fortunately, gathering car insurance
quotes and picking the perfect policy is quite easy with trustworthy insurance comparison
app Jerry
, and we’re here to help you find coverage for your used vehicle regardless of whether you buy it from a dealership or a private party. Read on to discover everything you need to know. Do you need car insurance before buying a used car?
In most states, you are required to show proof of insurance
coverage whenever you buy a new car (or a used one) from a car dealership, but you may be able to buy a used vehicle without having insurance if you purchase from a private seller. Either way, it is a good idea to get car insurance quotes from a few car insurance companies before you purchase a used vehicle, so you have a ballpark idea of how much your desired vehicle will cost to insure.
Buying from a dealership
When purchasing a vehicle from a dealership, the salesperson you work with will help secure your plates and registration from the DMV and will thus need to confirm that you have a valid car insurance policy
before they let you drive your vehicle off the lot. While you can technically purchase a car without insurance, you won’t be able to take it home until you’ve secured adequate coverage. If you purchase your used vehicle with a loan, the lender may also have specific insurance requirements (such as full coverage, which includes comprehensive coverage and collision coverage), which will be outlined in the terms of your loan.
Buying from a private s eller
You can technically buy a vehicle from a private seller without proof of used car insurance, but you won’t be able to get your new car home until you’ve secured your state’s minimum level of liability coverage (unless, of course, you choose to tow it).
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How to get used car insurance
If you already have a car insurance policy, you can contact your insurance provider and inform the insurance agent that you bought a used car and would like to add it to your existing policy. Keep in mind that your rates may change, and you will be responsible for paying the difference in premium costs.
If you’re currently uninsured—or if you would like to shop around and potentially replace the coverage you do have—then you’ll need to purchase a new insurance policy.
The first step is to determine what your auto insurance rates will be for your new vehicle. You can figure this out by calling multiple insurance companies and requesting quotes. They’ll need a bit of information, such as your driver’s license number, and perhaps even a vehicle identification number, in order to determine your car insurance rates.
Of course, if you’d like to save time doing this, we suggest simply downloading the Jerry
app. Jerry’s trustworthy insurance comparison app
does all the hard work of finding cheap quotes from name-brand insurance companies and helping you finalize your new car insurance. What insurance coverage do you need?
Chances are you’re legally required to start with liability insurance
. No matter what kind of vehicle you’re purchasing, the car insurance coverage you secure should first meet your state’s minimum liability insurance requirements
. However, it’s most likely a good idea to purchase additional coverage depending on your specific vehicle. Once again, if you buy using a lender, you may be required to purchase particular types of coverage such as:
Collision coverage
, which covers the cost of damages that occur in the event of an at-fault accidentComprehensive coverage
, which pays for non-accident related damages to your vehicle, such as those resulting from theft and vandalism
Is there a grace period?
There may be a grace period if you already have an existing insurance policy that covers other vehicles that you own.
Many insurance companies offer a temporary grace period to add a newly-purchased car to your policy. During this grace period, your existing insurance policy will cover your car, even if it hasn't been added to the policy yet. For example, Progressive
gives you 30 days to add a newly acquired car to your policy. Keep in mind that it's essential to add your new car to your existing policy (or to purchase a new policy) as soon as possible to avoid any accidental lapses in coverage. If you get into an accident after your insurer's grace period has lapsed, you may not be covered for damages you cause or damage to your vehicle.
How to save money on car insurance for your new ride
Even if you already have an existing policy, we recommend downloading super app Jerry
so that you can ensure that your insurance premiums are as low as possible. And if you’re starting from scratch, Jerry will work fast to find you the lowest insurance costs available. It’s this simple: download the Jerry app and in less than 45 seconds, Jerry collects all of your information from your existing insurer. Choose from competitive quotes from top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one upon request. No long forms, no calling around, no hard work. The average Jerry user saves over $800 per year on car insurance.
“I had a great experience using Jerry
for the first time. Once my boyfriend buys his new car, we’ll use Jerry together to make sure he doesn’t end up overpaying on new insurance!” —Stephanie S.
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