It is the normal practice for individuals to buy insurance on assets they already own. In such cases, the asset owner wishes to initially exercise the right whether to insure or not. However, if you intend to buy a car in the United States, the right not to insure effectively does not exist as most U.S. states require that all cars out of the dealers shop must have a form of auto insurance coverage.
For anyone in the U.S. who would rather purchase their automobile before insuring it, the cost could be pretty high as they would have to buy the expensive temporary insurance which new & uncovered car buyers can get on the spot at the car dealerships. High convenience, even higher cost!
Clearly, the safest way to buy auto insurance is to get it even before a car purchase. That is, beginning the process before buying the car.
How do you go about this?
Some may believe they can afford to start the process with the first insurer they talk to, settling for the first quote they get. But by doing this, they deny themselves a lot of savings that could have come their way via quote comparison.
The Ideal process is:
1. CAR RESEARCH AND DECISION
A car is too expensive a product to be bought on impulse! So, be sure you know all the technical details about your preferred vehicle brand and model. This information is required when you approach insurers.
2. AUTO INSURANCE COMPARISON
Shop around online using insurance comparison sites like. They will give you free quotes from established insurance companies operating in your locality. This gives you the power to choose the most friendly rate for you.
3. INFORMING YOUR PREFERRED INSURER
Contact the insurance provider whose rates you prefer and give them information about the car you are about to buy. Also provide the insurer with contact information of the dealer from whom you will be buying the car.
4. GETTING A BINDER
This is the crucial part. Upon getting information about the proposed car, the insurance provider should be able to offer a binder, which is a temporary insurance contract that provides proof of coverage until you secure a permanent policy. Evidence of this binder must be forwarded to the dealer to act as the proof of insurance coverage most car dealerships require before you can take delivery of a car.
5. TAKING POSSESSION OF THE CAR
By now you are ready and secure in taking possession of your car from the dealer.
You may then continue the process with the insurer towards sealing up a permanent auto insurance policy.
Best of Luck.