You usually have at least one week after the purchase to purchase insurance for a used car. Some states and insurance companies give drivers up to 30 days to buy coverage, but the longer you wait, the greater the risk. If you currently have an active auto insurance policy in your name, state laws or your insurer may allow you a short period of time (such as a grace period) before adding your new car to the policy. The grace period generally ranges from seven to thirty days, depending on the insurer and the state.
Again, to be on the safe side, it's best to call your insurance company the same day you buy the car. If you already have an auto insurance policy, you can simply call your provider and add the vehicle you recently purchased to your plan. For example, you will be perceived as a high-risk person and another insurer may refuse to offer you coverage or may charge you higher insurance premiums. When you buy a new car in Arizona, the time you have to notify your insurer may vary because there are no state laws that guarantee how much time insurance companies should give you to exchange your current policy for a new one.
For this reason, many states require car insurance to protect drivers from direct financial liability for car accidents. No matter how much time your insurance company gives you to take out insurance for a new car, it's best to contact you as soon as possible. However, unlike a dealership unit, a private car seller may not ask you to show proof of insurance coverage before you leave. Learn more about how to get the best car insurance for your new vehicle and how to avoid driving without it.
If you pay with cash or buy a car directly from a private seller, you probably won't be asked to present proof of insurance to take possession of the vehicle. If you want to determine if you need collision or comprehensive insurance coverage, you must consider the total value of your car and its cost. If you are buying a new car, then you know that you must also have insurance or present proof of insurance. Other insurance companies may charge you a late payment fee or set a higher policy premium for the next renewal of car insurance as a late payment penalty.
The first thing to know when buying a used car is that a grace period generally covers your vehicle from the time you leave the car dealership to a specific period of time. If you don't have car insurance, you'll need to buy a coverage plan before you leave the car dealership. If you don't have car insurance yet, you'll need to get a new policy before you can legally drive your new car.