Content of the material
- What Happens if I Get into an Accident Without Insurance?
- How a Lapse in Coverage Can Negatively Impact You
- FAQ: How to Get a Car Without Insurance
- Can you drive a car without insurance if you just bought it?
- What consequences will I get for driving without insurance?
- How long do you have to insure a car after purchase?
- How can I buy my first car without insurance?
- What is new car insurance?
- New car replacement coverage
- Repair provision coverage
- Gap coverage
- Tips for Getting Your First Auto Insurance Policy
- Can I drive off the lot without insurance?
- WHAT IF MY BORROWED CAR IS IN AN ACCIDENT AND THE DRIVER HAS NO INSURANCE?
- Best Car Insurance Companies 2022
- Is non-owner car insurance for you?
- Whats the fastest way to get insurance?
- What to Provide Your Agent
- How Much Does Insurance Cost On A Financed Car?
- Who has cheap non-owner car insurance?
- Do you need proof of insurance after the test drive?
What Happens if I Get into an Accident Without Insurance?
If you cause an accident and don’t have car insurance, you may have to pay for the damage out of your pocket. You could also get sued if you don’t pay.
Police will likely charge you with driving without car insurance. You could face a hefty fine, license suspension and even jail time, depending on the state.
Once you buy car insurance, you will probably pay much higher rates for coverage. The at-fault accident and not having coverage are two factors that generally mean higher car insurance costs.
These are all reasons why maintaining car insurance coverage is critical to your finances.
How a Lapse in Coverage Can Negatively Impact You
In addition, if you no longer have auto insurance, you will have a gap in your coverage history.
When you go to insure the car again or even a different car, you may have difficulty finding an insurance company to underwrite your policy or finding a policy at a rate you can afford.
This is because insurance companies frown upon coverage gaps. There is potential for fraud with gaps in insurance.
For example, you could have had damage to your vehicle during your time with no coverage and then tried to file a claim for it once coverage was again in place.
You should discuss your situation and your needs with your auto insurance company prior to making any decisions about keeping your car without insurance.
Many car insurance companies will not offer any type of coverage unless you first purchase liability insurance.
Although some will only let you have a comprehensive policy which would cover damages if your car was in the following situations:
- In storage
- Was stolen
- Had fire damage
Keep in mind that if you plan to drive your vehicle, even only for a few minutes or a couple of blocks, you are legally required to have auto insurance on it.
Drivers are required to have auto insurance on cars they are just purchasing before driving off the dealer’s lot.
Depending on your circumstances, it may seem like a good idea to keep a car without insurance, which is why many people ask, “Do I have to have insurance to buy a car?” However, going without car insurance can set you even further back financially.
As we’ve said, you will almost always need insurance to buy a car. Before you buy a car, find out how you can save money on your auto insurance policy by searching with our online price comparison tool.
FAQ: How to Get a Car Without Insurance
Can you drive a car without insurance if you just bought it? No, you can never drive a car without insurance in 49 states, even if you just bought it. In New Hampshire, you can drive without insurance, but you are responsible for all damage you cause. There are also penalties for causing an accident without insurance. What consequences will I get for driving without insurance? In the best-case scenario, driving without insurance will only lead to a fine. You may also face jail time, community service, vehicle impoundment and/or a suspended driver’s license. How long do you have to insure a car after purchase? Your car must be insured before you drive it off the dealership lot. Your dealer will not let you drive it off the lot without insurance. If you have a current policy, you will likely have coverage via a grace period of 15 to 30 days after your purchase. You must contact your insurer to transfer coverage within that time. How can I buy my first car without insurance? It is not possible to buy a car without insurance. Luckily, getting insurance is straightforward and there are affordable options available.
What is new car insurance?
The value of a new vehicle typically drops by 10% as soon as it’s driven off the dealer’s lot, and it can decrease another 20% over the course of the first year.
Let’s say you purchase a brand-new car using a $15,000 auto loan. After the first year, you owe $12,000 on the loan — but the car’s value has dropped to $9,750. If you get into a serious accident and the car is totaled, your insurance company would only cover the car’s actual cash value of $9,750, minus any deductible. You would owe your lender the remaining $2,250 out of pocket.
However, there are special types of coverage made for owners of new cars.
New car replacement coverage
New car replacement coverage pays to replace your new vehicle with another one of the same make and model, and with the same features and upgrades. This addition to your policy will increase your premium, but it protects you against the decline in your car’s value.
Because a car’s value drops the most within the first few years, new car replacement coverage could be a good option for the first few years you own the vehicle. But if you’re comfortable taking on the risk, you can skip this coverage and the higher premium that goes with it.
Repair provision coverage
This type of coverage reimburses you for car repair costs above and beyond the vehicle’s actual cash value.
Guaranteed asset protection, or gap coverage, is especially valuable for those who have leased or financed their vehicles. If you total your vehicle before paying it off, your insurance company would pay the actual cash value of the car and you’d be on the hook for the remaining balance. But gap coverage takes care of the difference between the actual cash value and the amount you still owe.
Tips for Getting Your First Auto Insurance Policy
It’s relatively easy for experienced drivers with existing auto insurance policies to insure their new car.
In some cases, you can even drive off the lot before the new car is added to the policy, but it is a still good idea for new drivers to always have insurance before purchasing a car. If you are a new driver, here are some tips for securing your first policy:
- When shopping for cars, familiarize yourself with typical insurance rates for the makes and models that appeal to you. Use a price comparison site to see what insurance companies in your ZIP code are charging for different types of cars.
- Auto insurance is especially expensive for new drivers. Compare prices and see if you can get added to someone else’s insurance. A spouse, parent, or older sibling may be willing to help out.
- In a pinch, you may be able to get your first policy right at the dealership. Ask your salesperson if they will allow you to access the internet and shop for insurance before you get your car.
- If so, it’s possible that you can sign up for a policy right then and there and get your agent to fax proof of insurance to the dealership immediately so you can drive off.
Getting a new car is always an exciting time, and it’s totally possible to enjoy it without having car insurance. However, if you plan on going home with it anytime soon, you need to be insured.
Use these simple guidelines to get you behind the wheel and off the lot sooner rather than later.
Can I drive off the lot without insurance?
In most states, you can’t legally drive without car insurance, and that includes the trip home from the dealership. While you can take a test drive of a new vehicle that is insured by the dealer, you can’t drive anywhere without car insurance if you own the vehicle.
In all states (and D.C.), you’ll be financially responsible for any damage you cause while driving uninsured. The financial repercussions of driving without insurance can be devastating. Even if you don’t cause an accident, you could incur a penalty ranging from $25 to $5,000 if caught by law enforcement, depending where you live.
Most states can also suspend your driver’s license and charge you a steep fine. And in some states, if you are in an accident that someone else causes and you don’t have insurance, their insurance company could limit or deny coverage for the damage to your vehicle or your medical bills.
The two exceptions are New Hampshire and Virginia. In New Hampshire, you are required to prove that you can be financially responsible for an at-fault accident in order to drive without insurance. You may also need insurance if you’ve been convicted of certain violations. In Virginia, you can elect to pay the $500 Uninsured Motor Vehicle fee and forego getting an insurance policy.
WHAT IF MY BORROWED CAR IS IN AN ACCIDENT AND THE DRIVER HAS NO INSURANCE?
Remember, vehicle insurance in Maryland follows the car and not the person. Even if your friend does not have their auto insurance, yours will cover damages in the event of an accident. However, that does not mean you should allow someone outside of your household to drive your car. If they are in a crash, your premiums will likely increase.
Additionally, if a court finds that you were negligent for allowing the other person to drive your vehicle, you might be liable and face charges plus 12 points on your driving record with the Maryland Vehicle Administration. For example, if you allow someone without a license to drive the car and cause an accident, the accident victim may hold you and the driver liable for their injuries.
Best Car Insurance Companies 2022
With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We’ve evaluated insurers to find the best car insurance companies, so you don’t have to.
Is non-owner car insurance for you?
So, do you need non-owner auto insurance?
Typically a non-owner policy is available to motorists who:
- Have a valid driver’s license (or can get one by obtaining a car insurance policy)
- Don’t own a vehicle
- Don’t have regular access to a car
If you plan on having a gap in owning a car, obtaining a non-owner insurance policy to maintain continuous insurance coverage is a wise idea. Continuous coverage can make you eligible for discounted rates — and keeps you from rate hikes typically given to those who have a gap in coverage.
Insurers define “regular access to a car” in various ways, with some viewing it as using a vehicle as little as once per week or four times per month.
In certain cases, you may even opt for a non-owner policy when you own a vehicle. If you’re required to file a certificate, such as an SR-22 or FR-44, and your current carrier does not offer them, you can take out a supplementary non-owner policy with another company to meet this obligation. Because your vehicle won’t be covered by this secondary policy, the extra costs involved in this strategy are usually low.
Whats the fastest way to get insurance?
The quickest way to get car insurance is to do your research before purchasing the vehicle. If you've got an agent already, simply email or fax them your new car information.
Car sales are higher on the weekends, and insurance companies know this. That's why most provide a hotline to easily add your new car to your policy.
Contact National General for an easy quote, today. You can get more info and explore what's right for you.
What to Provide Your Agent
You’ll need to provide your insurance agent with the car’s information, including:
- Other information the agent requests.
Make sure you’ve entered into a solid purchase agreement before you execute the new insurance policy. You don’t want to pay for insurance on a car you don’t end up buying. If you plan to go car shopping on a weekend, contact your agent during the workweek to establish your new policy. Most agents aren’t readily available on Saturdays and Sundays.
How Much Does Insurance Cost On A Financed Car?
Since operating a financed car often requires full coverage auto insurance, the insurance cost is relatively pricey.
Your financed car’s insurance cost depends on a variety of factors including your age, gender, and driving record. According to a 2019 AAA study, the average cost for full coverage insurance on a medium-size sedan was $1,251 per year.
As with all types of car insurance, higher deductibles are associated with lower premium costs.
So, if you would like a lower premium and you are confident that you could afford a roughly $1,000 deductible in case of an accident, you might consider requesting a higher car insurance deductible from your chosen car insurance provider.
Who has cheap non-owner car insurance?
Finding who has the cheapest non-owner insurance quotes involves the same steps as finding the lowest cost standard policy. You want to compare quotes zip code from at least three insurance companies to see who has the lowest rate.
Among the major carriers surveyed by Insurance.com, Geico non-owner car insurance is the cheapest car insurance rate, on average. You’ll see how major carriers compare on quotes for non-owners insurance, and that you can save up to $300 by comparison shopping.
Cheapest Non-Owners Car Insurance CompaniesCompanyNon-Owner Yearly RateGeico$311State Farm$408Farmers$521Progressive$576Allstate$638Nationwide$677
Do you need proof of insurance after the test drive?
While insurance isn’t needed for you to take a test drive at a dealership or with a private seller, it’s generally needed to buy the car if your state requires car insurance. Before taking ownership and driving the vehicle off a dealer’s lot, you must show proof of insurance. A private seller may not ask for proof, but once the title is transferred over, the responsibility of insurance falls squarely on you as the vehicle’s new owner.