Do I Need Insurance Before I Buy A Used Car – What You Need To Know
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Making the right choice of the car to buy is important as this will be your means of transport for possibly the next several years. If you would like to buy a used car, you need to check out different models so that you can identify the car that suits you. You need to select a car that is within your budget and one that will satisfy your needs.
If you travel a lot, you may want to check out some four wheel drive vehicles while you may be comfortable with a smaller car if you only need it to drive around the city. You may be asking, “Do I need insurance before I buy a used car?” This will depend on whether you will buy using cash or through a loan. If you have made a decision to buy the car, you need to get quotes from various insurance providers so that you are aware of how much it will cost you to insure it.
Buying a used car
There are some key things that you need to keep in mind when buying a used car. You can decide to buy the car from a dealer, from a private sale or even from an auction. Buying a used car from a dealer can turn out to be more expensive. You will however be safer since the dealer will normally check to ensure that the car does not have any money owing on it.
A car from a dealer is also more likely to be in better condition and will have undergone regular servicing. You may then ask, “What comes first, car or insurance?” It will depend on your circumstances but normally you need to organize for insurance as part of the car buying process since you cannot drive the car without insurance. You need to know how to get insurance when buying a used car.
Car insurance before buying the car
You may be asking, “How do I get car insurance before I buy a car?” To answer this question, you need to understand that you can either buy a car through a loan or through cash. When buying a car using a loan, you will first have to buy insurance for the car before the lender can give you the loan. In this case, you will end up buying car insurance before you have actually bought the car. However, the details of your policy will be those of the car that you have decided to purchase. This means that you need to have identified the car that you want to purchase.
Insurance grace period
When buying a used car, insurance grace period may kick in if you already have car insurance for your other car. If you are replacing your old car with your new purchase, you may have a few days grace period within which to notify your insurer that you have replaced your car. If you are not getting rid of your old car, then the grace period may not apply and you have to notify your insurer to add the new purchase before your drive it. Buying a used car insurance to drive home will therefore be necessary.