Can I drive a car without insurance if I just bought it?

You may have anywhere from 2 to 30 days to tell your insurance company that you bought a new car if you are already insured, depending on financing and coverage details. If you don’t have car insurance already, you’ll need to get a new policy before you can legally drive your new car. Most car dealerships require ... read full answerproof of insurance to drive off the lot, so you’ll have to do some planning.

Either way, it’s wise to get car insurance quotes for different vehicles before buying one. That way, you’ll have a sense of which make and model is likely to increase or decrease your premium the most. At the very least, it’s something to take into account when picking your new car.

If you have an existing car insurance policy, there are two common grace periods for getting insurance on a new car:

• 2 to 4 days is common if you are adding a new car to an existing policy. Most car insurance companies will extend coverage to the new car in good faith, since it is usually required to get a loan. Such policies are designed to allow you to drive your new car home and make a call to your insurer quickly thereafter.
• 7 to 30 days is common if you are replacing a covered vehicle with a new car you purchased outright. In these cases, you can probably expect to have the same level of coverage as before. If you had liability-only coverage on the car you’re replacing, your new car would also have liability-only coverage.

Your policy term will transfer to the new vehicle in most cases, so you won’t have to start over with a new six-month or one-year policy.

If you are financing or leasing a new car, you may also want to consider adding gap insurance to your policy. Gap insurance will help pay the difference between the car’s market value and what you owe on your loan. Although collision coverage will pay fair market value for a totaled car, that may end up being less than you owe if you total your new car right away.

No matter how much time your insurance company gives you to get insurance on a new car, it’s best to reach out as soon as possible. Coverage specifics vary widely depending on state laws, insurance company rules, and individual policy provisions. If you miss a deadline, you could end up driving uninsured, which could result in legal fees, higher car insurance premiums, loss of your driver’s license, and more.

Yes, you need car insurance to drive legally in every state except Virginia and New Hampshire, where you can opt out of coverage if you prove that you can afford any damage you cause. If you choose to get car insurance or live in any other state, you’ll have to purchase at least the ... read full answerlegally mandated amount of coverage.

On the other hand, you do not need car insurance to:

• Drive a borrowed vehicle. You can legally drive a borrowed vehicle if that car is insured by someone else and they have given you permission to drive the car.

• Drive a rental car. You can get rental car insurance for however long you intend to drive the vehicle. Rental car insurance works like a standard auto insurance policy and includes at least the minimum coverage required by your state.

The minimum amount of car insurance required by states always includes liability insurance. Some states and auto lenders also require additional types of coverage.

What Insurance You Need to Drive

Liability Insurance

Liability insurance is required in almost every state and is used to pay for other people’s injuries and property damage if you cause an accident.

Uninsured/Underinsured Motorist Insurance

Uninsured motorist (UM) insurance is required in 20 states and the District of Columbia, while underinsured motorist (UIM) is required in 14 states. These types of insurance cover your own expenses when the at-fault driver does not have enough coverage.

Personal Injury Protection

Personal injury protection (PIP) is required in 12 states and can pay for your medical expenses after an accident, regardless of fault.

MedPay

MedPay is only required in Maine and New Hampshire. It pays for medical expenses after an accident, regardless of fault, and has the added benefit of not requiring a deductible.

Common Penalties for Driving Without Insurance

• Fines of up to $5,000
• Driver’s license suspension
• Jail time
• Vehicle impoundment
• SR-22 requirement

To learn more, check out WalletHub’s guide to the dangers of driving without insurance.

Yes, you can get car insurance instantly by purchasing a policy through the insurance company’s website or with a local agent. In order to get instant car insurance, you need to have all of your information ready, including your driver’s license number and your car’s vehicle identification number (VIN). If you specify that the policy needs to go into effect the same day, it will be active as soon as you make your first payment. ... read full answer

What You Need to Get Instant Car Insurance

• Your name and date of birth
• Driver’s license number
• The car’s vehicle information number (VIN)
• The car’s current mileage
• Your billing information, including a credit card or bank routing number
• Information for your prior insurance policy, if you had one

Purchasing a car insurance policy only takes 20 to 60 minutes for most drivers, so you’ll be able to get coverage relatively quickly. If you’re about to purchase a new car and you already have the VIN, you can set up the insurance policy ahead of time. Keep in mind that your policy will not go into effect until you’ve made a payment.

To learn more, check out WalletHub’s guide on how to get car insurance.