Buying Car Insurance
Car insurance can be confusing but it is a necessary part of life and understanding it can save you a lot of stress and money in the future. Here are tips to guide you.
Almost every state requires that you carry liability car insurance, which pays when you do damage to others. States that require liability car insurance set minimum limits and even states that don't require car insurance, require you to show proof of financial responsibility, meaning evidence that you can pay for any damage you cause.
Buying collision and comprehensive car insurance, and other optional coverage to protect yourself financially, is your own choice.
If this is your first car and you don't have car insurance, you need it before you drive the car off the lot. If you're financing the vehicle, your lender will likely require you to have insurance at the time of the purchase.
If you have car insurance and you're replacing your car, you generally have 14 to 30 days to notify your car insurance company of the purchase. Your car insurance rate will then be adjusted based on the new vehicle model. Make sure you inform your car insurance company about the new car within the appropriate window, or you could be driving without coverage.