When buying a brand-new vehicle, the dealership will require individuals to have an auto insurance policy before they can drive it off the lot. However, those planning to purchase a used car may wonder whether this still applies. Plan for a smooth purchase process by understanding your insurance requirements. 

Auto Insurance Guide to Buying a Used Car

Is It Required?

In the United States, all vehicles on public roads are required to be insured. However, each state has different minimums. For example, Texas residents must have $30,000 in bodily injury liability coverage per person, for a total of $60,000 per accident, and $25,000 in property damage coverage.  

If you are buying a used car from a dealership, they will ask you to show proof of coverage before you can drive away, just as with new vehicle purchases. If you are securing a loan to buy the car, the lender will likely require that you get additional coverage not required by state law, such as comprehensive and collision coverage to protect the car from physical damage. 

If you buy from a private seller and pay cash, you are still required to have insurance when driving on public roads. Otherwise, you could be fined if you get in an accident or are pulled over and can't provide proof of insurance. 

What to Do

If you know that you'll be buying a specific vehicle, sign up for a policy beforehand. You'll need to provide the car's make, model, and vehicle identification number (VIN) to do so. 

Alternatively, if you currently have an insurance policy for another vehicle, tell an agent that you're planning to buy another one. They may be able to provide a grace period for a few days, during which your current coverage will extend to the new vehicle. Give them the vehicle information as soon as possible, so they can add it to the policy. 

You can secure coverage from AreaWide Insurance Agency in Naples, TX. This local company provides a wide selection of auto insurance policies at affordable rates. Their team has more than 35 years of experience in the field and can help you find the perfect policy for your needs. Get started on their website or request a quote at (903) 897-5651.