“Do You Need Car Insurance? Everything You Need to Know”

“`html

Do You Need Car Insurance to Buy a Car?

While you might not need car insurance to purchase a vehicle, you must meet your state’s minimum coverage requirements before driving your new car. These requirements often include various types of car insurance coverage.

Common State Minimum Coverage Requirements

• Liability insurance: Covers damages and injuries you cause when you’re at fault in an accident.
• Uninsured and underinsured motorist insurance: Covers injuries and damage if another driver causes an accident and lacks sufficient insurance.
• Medical payments or personal injury protection (PIP): Provides coverage if you or your passengers are injured, can’t work, or die due to an accident.

When buying a car from a dealer, you may need to show proof of insurance before taking the car home. If you already have an auto policy, it might temporarily cover your new car. Contact your agent to confirm. Some dealers also offer temporary policies for use while you shop for a permanent one.

Financed or Leased Car Insurance Requirements

If you’re financing or leasing a car, the lender or leasing company will likely require full coverage, which includes:

• Collision: Covers costs when your vehicle is damaged in a collision.
• Comprehensive: Covers theft and damage to your car when you’re not driving.

You may need to maintain full coverage until you pay off the loan or end the lease.

Do You Need Car Insurance to Rent a Car?

Yes, you need insurance while driving a rental car. If you have an auto policy, it may cover your rental car. Otherwise, you can purchase a short-term policy or buy insurance from the rental car agency. Rental agencies typically offer policies for liability, medical expenses, and personal property, as well as loss damage waivers or collision damage waivers.

Compare the options to avoid paying for duplicate coverage. For instance, your auto policy might cover liability, your homeowners or renters insurance could cover personal property, and some credit cards offer rental car protections.

Do You Need Car Insurance for a Car in Storage?

Legally, you don’t need car insurance for a vehicle in storage. However, without insurance, you won’t be protected if the car is stolen or damaged. You might save money by keeping collision and comprehensive coverage while pausing liability coverage. If you have an auto loan or lease, you may need to maintain full coverage even if the car is in storage.

Consider low mileage discounts or pay-per-mile insurance policies to save money if you’re not driving the car.

How to Buy Car Insurance

Buying car insurance can be done online or over the phone. Follow these steps:

1. Review the types of coverage: Understand what each type includes and excludes. Look into extras like gap insurance, rideshare driving insurance, and roadside assistance.
2. Gather your information: Have your driver’s license and the vehicle’s VIN ready. If you haven’t bought the car yet, use the make and model.
3. Compare quotes: Collect quotes from several companies to find the best deal. Use online comparison tools for efficiency.
4. Review the companies: Look for reviews to learn about the features and customer experiences.
5. Purchase your policy: Choose when you want the policy to start. You might save money by paying upfront or enrolling in autopay.

Check for car insurance discounts that might apply to you.

How Much Does Car Insurance Cost?

The average annual cost of car insurance was $1,765 in 2023, according to AAA. Costs vary based on factors like coverage types, limits, age, driving experience, and location. Your credit history and a credit-based insurance score can also affect rates in most states.

Regularly compare car insurance quotes to find savings. O1ne Mortgage partners with over 40 insurance companies to help you switch policies if beneficial. Our tool can monitor quotes and notify you of changes.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your mortgage needs!

“`