Purchasing a new car is always a thrilling experience. Test-driving vehicles or imagining yourself driving the model you’ve always wanted is exciting. Car dealers have tried everything they could to make the car buying process as simple as possible. But what happens once you sign the paperwork and want to drive your car? Do you require insurance when purchasing a new vehicle?
Although purchasing a new car is thrilling, there are a few procedures between buying it and driving it. This article will cover everything that Canadains need to do before and after purchasing their dream car.
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Can you drive a new car home without insurance?
You’re likely wondering, “can I drive my new car home without insurance in Canada?”.
Even if you’re just returning back in your new automobile from the dealership, you’ll need valid auto insurance. You must be adequately insured whenever you drive any vehicle. Even if the trip is only five minutes long, you should be covered according to the law.
When buying a car from a private seller, evidence of insurance is not normally required before leaving with the vehicle. Having said that, driving without insurance is unlawful and can cost you a lot of money in court fees and even more if you get involved in an accident.
It is feasible to set up the regular yearly insurance on a new vehicle, but many people wish to switch insurance providers when purchasing a new car, and the procedure may take a little while. However, you can use temporary vehicle insurance, which allows you to drive your car off the lot without committing to a long-term insurance policy.
You may purchase temporary insurance for as little as a week or as long as a month. In such a case, you’re insured whether you only want to drive back home or be covered for a longer duration while you get a traditional yearly insurance policy.
Now you know the answer to the question — “can I drive a new car home without insurance?”.
Is it better to buy a car or get insurance first?
This is contingent on how you plan on financing the car you’re purchasing. Car insurance is required by law, so there’s no way around it, but here’s the gist of it:
- If you’re buying or leasing a car, you’ll require insurance at the very moment.
- The method you use while paying for your automobile determines your insurance coverage.
- In the case of a car purchase from a private seller, you’re required to submit proof of insurance prior to the registration.
- If you already have insurance coverage, you’ll need to contact your insurer to switch it to the newly purchased car.
If this is your first car, you must first purchase car insurance and then the car. Both new and old cars go through the same procedure. To have complete ownership of the vehicle, you’ll need sustainable insurance coverage.
Is there a grace period for car insurance?
If you already have automobile insurance, you usually have a seven to a thirty-day grace period before having to notify your insurance provider about your new vehicle. During this time, your current insurance coverage should automatically extend to your new automobile, but double-check with your provider.
It’s always a good idea to study your policy to see if and how your grace period applies to the car purchase. Even though you have a grace period, keep in mind that it only matches with the coverage of the previous vehicle.
How can I obtain proof of insurance prior to purchasing a car?
Primarily, there are three ways to get proof of insurance before you buy your new vehicle:
- To get car insurance beforehand, you need to decide which car and model you’re going to purchase. The particular car’s vehicle identification number (VIN) will help you get the insurance prior to buying a car.
- In case you’re purchasing a car from a dealership, the salesperson will assist you in determining the appropriate coverage for your new vehicle. Once you’ve decided on the car you’ll purchase, the dealership will call the insurance provider to get you started with a policy.
- If you already own insurance from a previous car, you can use that at the dealership as proof of insurance and drive your new car back home.
Taking advantage of a pre-existing insurance policy
There is a six to 14-day grace period while registering your new vehicle if you buy a new car and have an existing policy. If you ever get pulled over while driving during this grace period, you must have your previous vehicle’s sales documents and evidence of insurance with you. If you don’t have this paperwork, you risk receiving a fine or, worse, a significant driving offense on your record.
Frequently asked questions about driving a car without insurance
What if I get into a car accident before I’ve had a chance to inform my insurance company about the new car?
If you get into an accident before informing your current insurance carrier about your new automobile, you must be protected up to your policy’s liability limitations. However, you should double-check with your provider.
Do I still get a grace period if I buy a car from a private seller?
You certainly have the same duration to inform your insurance coverage provider as if you had bought the car from a dealer – which in some jurisdictions might be up to 30 days.
Endnote
Unless you already have coverage from your previous vehicle, you should avoid driving your new car home. There is a high chance of getting your license suspended if you drive without it. Furthermore, if your vehicle gets damaged, you may be obliged to pay charges for it if you are not already insured.
When buying a new or used motor vehicle in Canada, the prudent way to follow is to call your insurance company right away. When you give your insurance providers the information required about your new vehicle, you can get a quotation before buying it. This will help you make a better choice while purchasing a car and get your insurance coverage beforehand.