If it’s a current car that is going to be driven away the same day, the DEALER is going to need you to provide proof of insurance at the end of the transaction. The general process is:
- basically determine which insurance company you want to buy insurance from before you go to the dealer to finally buy the car;
- go to the dealer to look at the car and decide on the price and exactly which car;
- the dealer will handle all the transaction formalities, including registration and temporary license plate, at which time you are required to provide insurance;
- at this time you call the insurance company directly at the dealer, or log on to the official website of the insurance company to buy insurance, provide your driver’s license information, vehicle information, and the insurance options you need, the insurance company will send the proof of insurance to the dealer within a few minutes;
- The dealer receives the certificate, and after completing the procedures mentioned in 3, you can drive the car away.
So how do you pick an insurance company?
The larger insurance companies in the US like GEICO, Progressive, Allstate, etc. Go directly to their website to get a quote. The quote only needs general information about the vehicle, such as the model number, but not the VIN number, so you can get a general idea of the price before you go to the dealer. For these big insurance companies, there is basically no difference in service, so just pick a relatively cheap one.
If you already have other insurance with a particular insurer, such as homeowner’s insurance, etc., you can prioritize that insurer as there are usually some discounts. However, it is still advisable to inquire about a few more.
If one is a member of AAA or costco, one can consider the insurance they are associated with as there are some discounts as well.
What kind of insurance do you choose?
Similar to domestic car insurance, American car insurance also has many options, basically divided into two Liability and Comprehensive.
Liability is similar to the domestic compulsory insurance, is the law requires the car on the road to purchase compulsory insurance, generally only includes the accident in the case of your fault on the other side of the compensation.
Comprehensive can be called all-risk insurance, which is to compensate both the other party’s damage and your own.
When choosing an insurance policy there are two parameters for each program that directly affect the price:
Limit, which is the amount of insurance coverage, is the maximum amount of compensation that the insurance company will pay in a single accident.
Deductible, which is the amount of deductible or co-payment, is the portion of a single claim that is to be borne by the individual, beyond which the insurance company will pay.
The choice of insurance and the amount depends on individual needs. For new cars, it is still recommended to choose full coverage insurance, limit choose the minimum is good, deductible can choose $1000.
In addition, if you are buying a car with a mortgage, the lender usually has higher requirements for car insurance than compulsory insurance, and the dealer will tell you before you buy.
