Can I Buy a Used Car Without Insurance?

Used cars are affordable so it’s a way to get a nice deal without breaking the bank. While purchasing new cars requires insurance does this same apply to used cars? So just like us, you’re wondering can you buy a used car without insurance?

You can’t buy a used car with insurance. When it comes to cars, used or new insurance is necessary and without it, you will be in breach of the law.

This article will analyze the topic of insurance for used cars and the best way to go about it.

Why Do You Need Insurance Before Purchasing A Car?

The laws of different states in the US require drivers to have car insurance cover before purchasing a car. In most states, you can’t even drive away with a car from the car dealership without providing an insurance policy for the car.

In terms of the law that stipulates insurance before purchasing a car, both new cars and used cars are treated alike. The purpose of car insurance is not just to protect the car owner from injury or loss. It aims to secure other car owners as well passengers and pedestrians from injury and loss.

While purchasing a used car is relatively more affordable than a new one, there’s no such thing as second-hand insurance. You will need to take out a new policy if you don’t have one.

Before purchasing a used car, you need to first ascertain the likely cost of Insurance. This will allow you to know if the car is within your budget.

Is It Possible To Use An Existing Policy

When you have an existing policy, you may be wondering if it’s possible to use that policy as insurance cover for your new car. It’s possible to use an existing insurance policy for a new car, however, you need to inform your insurance company.

Keep in mind that not all dealerships are conversant with this arrangement. You will have to confirm with the dealership because some dealerships still demand proof of insurance. So you should have your proof of insurance just in case.

How To Get Insurance Before Buying A Used Car?

If you’re in the process of buying a second-hand car and you’re wondering how to go about the insurance process, you can follow these steps.

Choose Vehicle You Want

The first step is to choose the vehicle you want. You need to first ascertain the price of the car and the insurance cost of the car you want to buy. This will help you determine if you can afford it or not.

Get The Vehicle Information

After concluding that the car is within budget, the next step is to get the details of the car from the dealer. Car details such as the model, year, Vehicle Identification Number (VIN), and other information necessary for insurance.

Determine The Kind Of Insurance You Want

There are different types of car insurance policies you can opt for. The cost of the different insurance policies will depend on the type of car you want to buy.

These are the three types of vehicle insurance you can consider.

Comprehensive cover

This is a type of insurance that’s compulsory for cars bought through a mortgage. Comprehensive cover protects your car on and off the road by providing cover for accidents, injuries, and third-party accidents.

The comprehensive cover further protects the car from external elements such as wind, storms, and natural disasters. For example, if an object falls on your car and smashes the windows, or dents the car paint, a comprehensive cover will handle the repairs.

Third-Party, Fire, and Theft Cover

Third-party, fire, and theft insurance protect your car from the aforementioned peril. However, it doesn’t offer protection from damages to your car.

It’s slightly cheaper than comprehensive insurance but it provides significantly less cover. However, if your car is not financed and it’s not at risk of significant damage, you can go for this cover.

Third-Party Cover

This type of cover is the most affordable and it only covers damages to the other party. It’s appropriate for low-end cars that aren’t financed. While it doesn’t offer much protection, it’s still better than nothing.

Finalize Your Contract And Pay For Your Policy

After choosing the insurance type you want, you can then fill out the necessary forms. The last step is to pay the premium to activate the cover and you’re good to go.

What Is The Minimum Insurance Cover For Buying A Used Car?

Some states stipulate different minimum insurance cover. However, for most states, you only need to insure the car irrespective of the type of cover.

As earlier explained, there are three different types of insurance cover you can opt for. The cost of the car and manner and frequency of usage usually determines the type of insurance you should go for.

Essentially, if the car is expensive and you plan on driving it often, a comprehensive cover might be the best choice for you.

Also, if the car is relatively expensive and you drive often but you can’t afford a comprehensive cover, you should go for a third party, fire, and theft insurance cover.

Similarly, if you don’t drive much and the car doesn’t cost much, you can go for third-party insurance cover. This is a cheaper cover and it can do for a second-hand car.

Conclusion

Many people opt for second-hand cars because it offers a cheaper option. Car insurance covers are not cheap irrespective of the fact that the car is old. Hence you need to first consider the car price and the insurance cost to know if you can afford it.