Can I Get in Trouble If I Don’t Have Auto Insurance After Buying the Vehicle?
If you drive or park a vehicle on the road, the answer is yes, you can get in trouble. However, if you have paid for the vehicle in cash and just park it on your property without driving it, you won’t face any issues. But if you financed the vehicle, you would likely be in violation of the finance agreement.
Insurance Requirements: Driving on Public Roads
In most cases, when you buy a car at a dealer, you must show proof of insurance before taking the vehicle home. If you don’t have it, a broker will be contacted to issue a binder that is valid for a certain period. You will then need to continue with that insurance company or secure coverage elsewhere.
Insurance is required by the state to drive on public roads. The most common kind is liability insurance. If you do not have it and are stopped by the police for any reason, you will face a hefty fine and possible loss of license. In the event of an accident, you will also be unable to provide insurance coverage, leading to further fines and possibly legal action from the other party involved.
Financing and Full Coverage Insurance
If you financed the car, you are required to carry full coverage insurance. This includes liability insurance as required by law, along with comprehensive coverage for accidental damage other than that caused by a crash, and collision coverage for crashes. If you drop your insurance coverage and then have an accident, you may be without the necessary coverage to pay for repairs or other damages.
Current(auto) Insurance Availability
Automotive insurance providers are currently still offering policies despite any shelter-in-place or lockdown protocols. You have no excuse not to insure your new vehicle. In fact, it is highly recommended to have auto insurance ready to go before finalizing the purchase.
For example, after discussing the necessary details with the insurance company while at the dealership, they can email a PDF with your proof of insurance card for the new vehicle. The dealer can then print it and place it in your glove box.
If you are trading in a vehicle and buying a direct replacement, the new vehicle will have the same coverage as the one you traded in for a limited period. This time frame is listed in your insurance policy. It is advisable to confirm your insurance coverage by calling the insurance company upon leaving the dealership. Most insurance companies now offer 24-hour service, although it might be limited.