The timeframe in which to purchase car insurance on a new car would depend on a few different circumstances. If an individual is currently uninsured, the car dealership generally will not let the vehicle be driven off the lot without any proof of a policy. In this case, coverage would need to be purchased before the transaction is complete. Most car dealerships offer their drivers coverage from their own company just to complete the transaction and make the sale. There are also insurance companies that are located near the vicinity of a car dealership in order to accommodate the needs of these drivers as soon as they purchase a car.
However convenient, instant or quick coverage usually comes with an inflated rate. Because of the need for coverage or proof of insurance, car dealerships or financial institutions take advantage of that opportunity to provide coverage for impatient drivers. If a consumer or driver does choose to go this route, they should inquire first whether or not this policy covers the owner’s liability. Many lenders will only provide incomplete coverage with just comprehensive and collision to protect their investment for physical damage.
Before purchasing a car, many individuals make a very common mistake and do not complete a quote comparison based on the vehicle that they are looking to purchase. Although, consumers set out to buy cars with a certain price range in mind, many immediately assume that the cost of coverage will be similar to all vehicles in that price range, only to find out that their premiums will be much more than originally thought. With most car models, there is a certain price range for certain type of car. High performance vehicles or sports cars, for example, have a very high premium. There are also differences when it comes to model and make. You can purchase a car from the same manufacturer but have a completely different rate for that car.
In most cases, when a driver is already insured, they can transfer their coverage to a car they just purchased. However the timeframe usually limits the driver 15-30 days to inform the company that they have purchased a new car and they have chosen to transfer their coverage to the new car. These companies require to be informed so that they can adjust the rates according to the new automobile’s make, model and year. There are also insurance companies that transfer coverage plans automatically unless the car is a completely different car.
