TUESDAY, APRIL 12, 2022
Insurance for a new vehicle and a used car is generally the same. If you plan to drive, you should have auto insurance. Insurance can offer protection if you have vehicle damage or are injured.
Different Insurance Scenarios for a Used Car Purchase
Purchasing a Used Car From a Dealership
Almost every state requires proof of insurance before you take a used vehicle home from a dealership. If you don’t have insurance when you purchase your used car, you won’t be able to drive it off the car lot until you have an insurance policy. At the very least, you should have the minimum liability insurance as set forth by Virginia state law before getting behind the wheel.
If you already have coverage, you can add your used car to your existing auto insurance policy. Generally, you have a week to a month to do so after buying it, but this depends on your insurance company. Check with your insurer if you’re planning to purchase a vehicle to ensure you have coverage when you need it.
Purchasing a Used Car From a Private Seller
If you bought your car from a private seller, this might be the only time you don’t technically need insurance to purchase a vehicle. However, this only applies if you buy your car with cash and not with a loan. A private transaction, in most cases, doesn’t require proof of insurance.
Purchasing a Vehicle in Virginia
Virginia drivers are some of the few who can drive without auto liability insurance. However, if you choose to do this, you must pay an extra fee each year along with your vehicle registration. Getting behind the wheel is always safer with insurance; without coverage, you’re putting yourself at risk.
What Insurance Should I Have?
Standard insurance coverage, such as liability coverage, is generally the same whether you buy a used car or a new one. However, suppose your used car isn’t very valuable. In that case, you may be able to cover the cost to repair or replace the vehicle yourself, and you might not need comprehensive or collision coverage.
If you plan to take out a loan for your vehicle, you’ll probably need insurance coverage before your lender gives you money. Lenders typically require that you have the following:
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Collision coverage—This insurance can help pay for any damages resulting from a collision with another vehicle or object.
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Comprehensive coverage—This insurance can pay for other incidents that cause damage besides a collision, such as a hail storm, fire, hurricane, etc.
Supplemental coverages can provide additional protection, including:
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Uninsured and underinsured motorist coverage can pay for your vehicle damage and injuries if the accident was someone else’s fault and they lack liability coverage to repay you.
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Roadside assistance can enable you to call your insurance company for help if you have a flat tire, dead battery or another typical vehicle issue.
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Rental car reimbursement may pay for some rental car costs if your vehicle needs repairs after an accident.
Never assume you won’t have an accident. Insurance helps protect you from high out-of-pocket accident expenses. This coverage can give you peace of mind, and the team at InsurePro LLC can help you get the insurance you need for your used vehicle.
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NOTICE: This and all content is developed from sources believed to be providing accurate information.
The information in this material is not intended to be used as tax or legal advice. Please consult with a tax and/or legal professional
for detailed information regarding your individual situation. Some of this material was developed and shared by InsurePro LLC to provide information
that may be of interest. InsurePro LLC is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm.
The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
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