It’s illegal to drive without a valid driver’s license and proof of insurance, and a reputable dealership will check both before allowing you to drive a new car off their lot. You can buy car insurance
at the dealership—but you’ll save money if you compare rates and purchase a policy ahead of time. You need to show proof of insurance to drive
To avoid any possible liability, dealerships generally ask car buyers for a valid driver’s license and proof of insurance before allowing them to drive their new car home.1 You can present proof of insurance
as a physical card, digital card, or attestation letter from your auto insurance company. If you’ve insured your car through the Jerry
app, you’ll always have access to your insurance card in the virtual glovebox. Dealerships verify insurance with software and phone calls
Modern car dealerships use software for automatic insurance verification. The dealership may enter your details through an online portal that checks your insurance status, or ask you to complete a form through an email link.
If all else fails, the dealership can manually verify your insurance by calling the DMV or your insurance company. They’ll provide your contact info, vehicle identification number (VIN), policy number, and other details, then wait for the DMV or insurance agent to confirm.
Car insurance is the responsibility of the vehicle owner
It’s an established practice for dealerships to ask for auto insurance, but they may not be legally required to do so. Several state courts have ruled that dealerships can’t be held liable for failing to ask for proof of insurance, failing to verify fake proof of insurance, or letting a buyer drive uninsured.23 Once the transfer of ownership
is complete and the car title is in your name, insuring it is your responsibility. The law applies whether you’ve just bought a brand-new car from a dealership or a used vehicle in a private sale.4 To avoid the penalties of driving without insurance
—including fines, driver’s license suspensions
, vehicle impoundment, and jail time—you must buy car insurance before you drive. How much car insurance should you buy?
For most drivers, the best level of coverage is full coverage car insurance
that includes: Liability coverage
(both bodily injury and property damage)Uninsured/underinsured motorist coverage
Personal injury protection or MedPay
We recommend setting your liability limits at at least $50,000/$100,000/$50,000 to avoid costly liability after a serious accident.
The quickest way to get insured is through an existing policy
Check your paperwork: If you already have car insurance, your existing coverage might apply to your new car purchase for the first few days. New car insurance grace periods
typically last from seven to 30 days, so you’ll have plenty of time to drive home and add your new vehicle to your policy. If you don’t already have a pre-existing policy, many car insurance companies offer same-day insurance
when you purchase a new policy. You may also have the option to purchase temporary car insurance
from the dealership. Dealership car insurance lasts about 28 days, giving you a generous amount of time to secure permanent coverage. But beware—premiums are often sky-high. The cheapest way to get insured is to compare car insurance quotes
The Jerry
app streamlines the process of getting same-day coverage—it takes less than two minutes to sign up. Almost instantly, you’ll be able to browse personalized quotes from dozens of insurance companies. You can also customize your coverage levels right in the app, so it’s fast and easy to get exactly the policy you need. 4.717k Ratings 5M+Drivers Joined
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FAQ
Do you need to get car insurance before picking up a car at the dealership?
Most dealerships ask for proof of car insurance before letting you drive a new vehicle off the lot. They also offer short-term car insurance, but it’s expensive, so it’s better to arrive with an insurance policy already in place.
Do I need car insurance to buy a used car?
Even if a private seller doesn’t ask for proof, driving uninsured is illegal and you need auto insurance to take a newly purchased used car home.
How do I get proof of insurance?
Your auto insurance provider will mail you an insurance card shortly after you’ve purchased coverage, and in most states, you’ll also get a digital copy. If you’ve lost your card or need proof of insurance
quickly, ask your provider for your policy number or a letter confirming your plan. How much insurance do you need for a car loan?
What’s car dealership insurance?
Car dealerships may offer temporary coverage to customers looking to get their car home, but these policies are generally over-priced.