Auto Insurance: Frequently asked questions

Do I need to purchase insurance before I buy a new car?

If this is your first car, yes, you'll have to buy auto insurance before you drive your shiny new car off the dealer's lot. If you are financing the purchase, the lender will require that you buy a policy with comprehensive and collision coverages. Not all states require the purchase of liability coverage, however, and you can find out which ones do by reading Which states require drivers to buy liability insurance?

If you have owned a vehicle and already have an auto insurance policy, that will generally cover your new automobile for a period of up to 30 days after you buy it. Once that 30-day period is up, you'll have to talk with your agent or company representative to insure that new vehicle.

For a complete look at what to do when you buy a new car, see Auto(matic) coverage for new cars.