Can I Purchase a Vehicle without Auto Insurance?

  • If you don’t plan to operate the vehicle, then you probably don’t need auto insurance. However, few people purchase vehicles so they can sit in the driveway or other area. Collectors might, but without auto insurance, their valuable vehicles have no protection against theft or damage.
  • Anytime a vehicle is purchased it usually must be transported from the place of purchase to the buyer’s property. And it’s nearly impossible to do that without operating the vehicle. The only option here is to have the vehicle towed. Therefore, if you intend to operate that newly-purchased vehicle, even if it’s one time from point A to point B, you need auto insurance or you’ll probably be in violation of your state’s laws governing motor vehicle operation. If caught, you’ll likely get a ticket and have to pay a fine; all of which will show up on your driving record.
  • In most states you can’t register the new purchase without auto insurance or proof of some other type of financial liability. So in states with financial liability laws, you could post a bond or a cash deposit instead of purchasing auto insurance and legally satisfy this requirement. But again, the vehicle would not be covered against theft or damage. Since few people can afford the thousands of dollars required for a cash deposit or bond, most purchase auto insurance instead.
  • If you’re planning to finance the vehicle purchase, there’s little chance of your loan being approved without showing proof of at least collision and comprehensive coverage. If you’re buying with cash, this condition goes away. But there’s still the matter of theft and damage to contend with.

Obtaining auto insurance isn’t hard. Just follow these steps:

  • Determine your auto insurance coverage needs. (Our website can help!)
  • Have your driver’s license number, the car’s VIN (Vehicle Identification Number) and year, make and model of your car handy.
  • Shop for quotes and purchase your policy. Keep your insurance card in your car. To keep your auto insurance score and your premium from increasing, pay your auto insurance premiums on or before the due date and obey all traffic laws all the time.