Can you buy a car if you don’t have insurance?
Can you buy a car if you don't have insurance? If you already have auto insurance, your ordinary auto insurance policy will likely cover you when driving a new car off the lot. However, if you don't have insurance, you cannot buy a car without insurance.
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Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Laura D. Adams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Chris Abrams
Updated February 2025
So you don’t have auto insurance, but you want to buy a new car. Can you buy a car if you don’t have insurance? Today, we’re going to answer that question and explain everything you need to know about insuring a new car the day you get it so you don’t have to worry about buying a car without insurance.
Knowing what the best auto insurance companies are can help you find the most affordable auto insurance quotes for you and your vehicle.
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- You can buy auto insurance online.
- If you already have auto insurance, your ordinary car insurance policy will likely cover you when driving a new car off the lot.
- Some auto insurance policies will only extend coverage for the drive from the dealership to your home when buying a new car.
Can you buy a car without insurance?
If you already have auto insurance, your ordinary auto insurance policy will likely cover you when driving a new car off the lot.
Most auto insurance policies will provide automatic coverage for new car purchases equal to the broadest coverage on your current vehicle.
In other words, if you are looking at insuring a new car, your current auto insurance policy will typically cover you.
Some auto insurance policies will only extend coverage for the drive from the dealership to your home. Most times, policies permit this drive directly home from the dealership with full insurance coverage. But you need to adjust insurance after you get home.
In some cases, your auto insurance will cover you for up to 4 days after purchasing your new vehicle.
There are some restrictions to this rule. How many cars are insured on the same policy will impact your coverage a bit. If you have a solo policy, your new vehicle will have the same coverage as your other vehicle.
If you have multiple vehicles listed on your policy, your new vehicle will have the same coverage level as the highest protected vehicle on your policy.
In some cases, it’s best to notify your auto insurance company from the dealership lot.
You might provide your VIN and other details to your auto insurance agent over the phone to adjust your policy. Some dealerships will not accept your insurance company’s “grace period” as valid proof of insurance.
Do you have to register a car before getting insurance?
Most states require that you have auto insurance before you register your car.
An insurance card or a printout detailing your coverage is typically enough to get the registration without your vehicle. The local DMV will verify your proof of insurance and lists the vehicle you want to register. The DMV will also make sure your policy provides the state minimum coverage.
Don’t know how much auto insurance is required in your state?
Check with Insurance Information Institute for state requirements or see the table below to see what auto insurance your state requires.
State Minimum Auto Insurance Requirements| State | Minimum Bodily Injury Liability Limits per Individual | Minimum Bodily Injury Liability Limits per Accident | Minimum Property Damage Lability Limits |
|---|---|---|---|
| Alabama | $25,000 | $50,000 | $25,000 |
| Alaska | $50,000 | $100,000 | $25,000 |
| Arizona | $15,000 | $30,000 | $10,000 |
| Arkansas | $25,000 | $50,000 | $25,000 |
| California | $15,000 | $30,000 | $5,000 |
| Colorado | $25,000 | $50,000 | $15,000 |
| Connecticut | $25,000 | $50,000 | $20,000 |
| Delaware | $25,000 | $50,000 | $10,000 |
| District of Columbia | $25,000 | $50,000 | $10,000 |
| Florida | $10,000 | $20,000 | $10,000 |
| Georgia | $25,000 | $50,000 | $25,000 |
| Hawaii | $20,000 | $40,000 | $10,000 |
| Idaho | $25,000 | $50,000 | $15,000 |
| Illinois | $25,000 | $50,000 | $20,000 |
| Indiana | $25,000 | $50,000 | $25,000 |
| Iowa | $20,000 | $40,000 | $15,000 |
| Kansas | $25,000 | $50,000 | $25,000 |
| Kentucky | $25,000 | $50,000 | $25,000 |
| Louisiana | $15,000 | $30,000 | $25,000 |
| Maine | $50,000 | $100,000 | $25,000 |
| Maryland | $30,000 | $60,000 | $15,000 |
| Massachusetts | $20,000 | $40,000 | $5,000 |
| Michigan | $20,000 | $40,000 | $10,000 |
| Minnesota | $30,000 | $60,000 | $10,000 |
| Mississippi | $25,000 | $50,000 | $25,000 |
| Missouri | $25,000 | $50,000 | $25,000 |
| Montana | $25,000 | $50,000 | $20,000 |
| Nebraska | $25,000 | $50,000 | $25,000 |
| Nevada | $25,000 | $50,000 | $20,000 |
| New Hampshire | $25,000 | $50,000 | $25,000 |
| New Jersey | $15,000 | $30,000 | $5,000 |
| New Mexico | $25,000 | $50,000 | $10,000 |
| New York | $25,000 | $50,000 | $10,000 |
| North Carolina | $30,000 | $30,000 | $25,000 |
| North Dakota | $25,000 | $50,000 | $25,000 |
| Ohio | $25,000 | $50,000 | $25,000 |
| Oklahoma | $25,000 | $50,000 | $25,000 |
| Oregon | $25,000 | $50,000 | $20,000 |
| Pennsylvania | $15,000 | $30,000 | $5,000 |
| Rhode Island | $25,000 | $50,000 | $25,000 |
| South Carolina | $25,000 | $50,000 | $25,000 |
| South Dakota | $25,000 | $50,000 | $25,000 |
| Tennessee | $25,000 | $50,000 | $15,000 |
| Texas | $30,000 | $60,000 | $25,000 |
| Utah | $25,000 | $65,000 | $15,000 |
| Vermont | $25,000 | $50,000 | $10,000 |
| Virginia | $25,000 | $50,000 | $20,000 |
| Washington | $25,000 | $50,000 | $10,000 |
| West Virginia | $25,000 | $50,000 | $25,000 |
| Wisconsin | $25,000 | $50,000 | $10,000 |
| Wyoming | $25,000 | $50,000 | $20,000 |
In this case, you might need your insurance company to fax the paperwork to the dealership.
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Buying a Car Without Insurance
Everything we said up above was written, assuming that you don’t need insurance before buying a before driving your car off the lot.
But what happens if you need auto insurance?
What happens if you’re not currently covered, or if this is your first vehicle?
In this situation, then you need to get insurance before driving off the lot. You are legally required to have auto insurance to drive.
Can I buy auto insurance online? Luckily, the majority of auto insurance companies enable you to swiftly acquire instant car insurance on short notice, either through online channels or over the phone, regardless of the time of day or night.
How do I add auto insurance?
Generally, you’ll want to buy auto insurance several days before buying your new vehicle. This is particularly true when you’re buying a car out of state and driving it home. That longer drive back to your state poses more risk that you need to watch out for.
If you know which vehicle you want, then you can buy auto insurance for that specific vehicle. Ensure the auto insurance is scheduled to be activated on the day you’re buying the vehicle from the dealership. You then can legally buy the vehicle and drive it off the lot that day while retaining full coverage. (Read more on how to choose cheap full coverage.)
Alternatively, if you didn’t prepare in advance, or if you’re jumping on an unexpected deal at a car dealership, then you can buy instant auto insurance while you’re at the dealership. You can buy auto insurance online, for example, and have the paperwork sent to you immediately before driving your vehicle off the lot.
Most insurance companies also have hotlines you can call. Some insurance companies will operate weekend hotlines, for example, when they would normally be closed, because they understand most vehicle buyers are purchasing vehicles on weekends.
All major insurance companies will have some hotline you can call to buy insurance immediately over the phone. Visit the website of any auto insurance company to immediately buy insurance online or over the phone.
Using this system, you can get auto insurance immediately and drive your car off the lot the same day you buy the vehicle – regardless of whether or not you currently have auto insurance.
Learn More About Your Policy
If you’re buying a new vehicle and want to drive it off the lot, then you need auto insurance coverage. You cannot drive a vehicle on a public road in the United States without auto insurance, or you will be penalized.
Let’s go over what we just learned: If you already have an auto insurance policy for another vehicle, this auto insurance policy will typically cover your new vehicle.
Some policies automatically extend coverage for the drive from the dealership to your home. Other policies offer temporary coverage, which means you have four days to notify your auto insurance company of your new vehicle. Some drivers will call their insurance company from the dealership to change coverage before driving off the lot.
If you’re ready to start looking for car insurance in your area, use our free tool to begin. Enter your ZIP code to start comparing auto insurance rates from local agents.
Read more: Do you need auto insurance before you buy a car?
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Frequently Asked Questions: Can you buy a car if you don’t have insurance?
You cannot buy a car without insurance. If you do not currently have auto insurance, you will need to have auto insurance before driving the car off the dealership’s lot. The car dealership will not let you leave with the vehicle until you provide proof of insurance.
In this case, you can buy auto insurance instantly online or over the phone from any major auto insurance company to ensure you’re able to drive the car off the lot the same day.
Frequently Asked Questions
Can I cancel my insurance policy if I no longer own a car?
Yes, if you no longer own a car, you can cancel your insurance policy. Contact your insurance company to inform them of the change in ownership and request cancellation. It’s important to cancel the policy to avoid unnecessary premium payments.
What factors besides driving record affect my insurance rates?
Besides your driving record, other factors that can affect your insurance rates include your age, gender, marital status, location, annual mileage, type of vehicle, and claims history.
Can I get insurance for a car that I’m financing or leasing?
Yes, when you finance or lease a car, the lender or leasing company typically requires you to have insurance that meets their specified coverage requirements. You will need to provide proof of insurance before finalizing the financing or leasing agreement.
Can I buy a car and get insurance for it if I have a learner’s permit?
Yes, you can typically buy a car and get insurance for it even if you have a learner’s permit. However, the insurance requirements and restrictions may vary depending on your state and the insurance company.
Can I transfer my existing insurance to a new car?
Yes, you can usually transfer your existing insurance to a new car. Contact your insurance company to provide them with the details of your new vehicle and make any necessary adjustments to your policy.
Can you buy a car without insurance?
No, you cannot buy a car without insurance. If you do not currently have auto insurance, you will need to have insurance before driving the car off the dealership’s lot. The dealership will require proof of insurance before allowing you to leave with the vehicle.
Is state minimum coverage enough?
Yes and no. “Enough” car insurance is hard to measure. In this instance, buying a car, state minimum coverage is adequate to complete your purchase.
Where can I get same-day insurance so I don’t end up buying a car without insurance?
Here is a list of a few companies that you can get same-day insurance from.
- Allstate
- American Family
- Amica
- Farmers
- Geico
- Progressive
- State Farm
- USAA
Most companies will initiate your auto insurance on the same day.
What is the best day to buy a car?
The best day to but a car is in the middle of the week: Tuesday or Wednesday, Not many people will be at the dealership during those days.
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