Even if you are ready to buy a car, you have to have more than just the money to pay the dealer. There are a bunch of other things you have to have in place too.
In order to drive, there are a few main things you’ll need. Namely, you need a registration, a driver’s license, and proof of car insurance.
However, what about when you just want to buy a car. Can you buy a car without insurance? Is this required in order to complete the purchase?
This article will answer these insurance questions.
Can You Buy A Car Without Car Insurance?
The short answer is no, you cannot purchase a car, or any vehicle, without car insurance.
Typically, new or used cars are purchased at a dealership. Here, they may not sell you a car without proof of insurance on hand. In fact, some dealerships require you to have car insurance before you are able to take a car off their lot.
And this is because nearly all of the U.S. requires drivers to have car insurance on hand at all times while driving.
However, there is one state that does not.
Driving Without Car Insurance
New Hampshire is the only state that allows you to drive without car insurance.
Thus, it is more likely that you will find places to purchase a car without a car insurance in New Hampshire.
In most places outside of NH however, even if you can purchase the car, you cannot drive the vehicle out of the lot without insurance.
Other Scenarios with Driving and Car Insurance
It may be the case that you have enough money to pay cash for the car upfront. Do you still need car insurance?
Yes, you still need car insurance even if you plan to pay in cash.
The dealer still needs you to have car insurance because they are required to submit the paperwork to the DMV for the sale.
The good news is that you only need your state’s minimum coverage if you are paying upfront in cash.
What if I Purchase my Car Outside a Dealership?
Another option to consider, is purchasing a car from a private seller rather than in a dealership. Even here, you will likely need car insurance.
It does not matter if you are paying in installments or lump sum if you plan to buy through a private seller. Your seller needs to show the DMV that they will transfer the title to you. This requires proof of your car insurance.
In conclusion, buying a car or any vehicle is difficult without any car insurance. So it is best to have car insurance if you are planning to purchase a car in or outside of a car dealership.