When buying a car, whether it is new or old, it must be properly insured before it can be driven on the road. Driving a car without insurance is not allowed by law.
Drive-away insurance is used as a temporary solution when it is not possible to take out long-term insurance immediately at that time. This insurance provides immediate protection until long-term insurance is arranged after buying a car.
Thus, Drive-Away Insurance is important to drive the car safely and legally on the road immediately after buying it.
What is Drive-Away Insurance?
Drive-away insurance is a temporary policy that provides immediate protection after buying a car. It is valid only for a few days. After that, long-term permanent insurance must be taken out.
There are some situations where this type of cover is necessary. When a person buys a used car, whether it is through a private seller or through a showroom, insurance is required immediately. When buying a car at an auction, you need to show proof of insurance to take it from there. Drive-away insurance is helpful in such cases.
Furthermore, this insurance can be helpful when you need to temporarily borrow a car from someone and drive it. In some states, especially in places like Texas, driving insurance is required. There, you can get instant coverage with drive-away insurance as soon as you buy a car.
READ MORE: WHAT IS CAPTIVE INSURANCE FOR DUMMIES
What does drive-away insurance cover?
The coverage provided by Drive-Away Insurance varies depending on which insurance provider and policy you take out. But it generally includes the following types of coverage.
Liability Coverage
Cover damage to someone else’s car or property, as well as injury or medical expenses to others in an accident. This is the minimum coverage required by law.
Collision Coverage
Cover damage to your car itself in an accident and the cost of repairing it. This coverage will help regardless of who is at fault in the accident.
Comprehensive Coverage
Cover damage that occurs apart from the accident. For example, car theft, vandalism, rain, flood, hailstorm, etc. Natural factors. This is important for expensive cars.
Uninsured/Underinsured Motorist Coverage
If an uninsured or underinsured person causes damage to the car, this coverage can cover it. Therefore, drive-away insurance, although temporary, provides basic and important protection immediately.
How long does drive-away insurance last?
Drive-away insurance is a temporary insurance that is only provided for a short period of time. It is usually valid for 1 day to 30 days.
This insurance is used to drive a car safely in the interim period until a long-term car insurance policy is taken out.
This is especially helpful for first-time car buyers, as it provides immediate coverage even in situations where they cannot take out long-term insurance immediately.
How to take out Drive-Away Insurance?
The methods of taking out Drive-Away Insurance are very easy, but there are some things that need to be followed carefully.
Step 1: Have the necessary information ready.
You should have the full details of the car (make, model, year, VIN), driver’s license, and proof of purchase (bill of sale or agreement) ready.
Step 2: Compare Policies
Not all insurance companies offer drive-away insurance. Therefore, you should research which companies offer it, compare their prices and coverage details, and choose the right one.
Step 3: Buy the policy and drive the car.
You should drive the car only after the policy has been purchased and confirmed. Driving a car without insurance can lead to problems such as fines, license revocation, and legal actions in states like Texas.
Thus, buying drive-away insurance is essential for immediate protection when buying a car.
Why is Drive-Away Insurance useful?
Drive-away insurance is considered useful for several reasons.
Immediate protection
Insurance coverage is available on the day the car is purchased. This eliminates the gap until you take out a long-term policy.
Legally Protected
It is illegal to drive a car without insurance. Drive-away insurance allows you to drive a car legally and safely.
Peace of Mind
You don’t have to worry about the costs of an accident. You can have peace of mind because you have immediate coverage.
Flexibility
This insurance is very helpful in cases such as cars bought at auction, temporarily borrowed cars, or short-term use.
In short, drive-away insurance is very useful because it provides protection and legal coverage immediately after purchasing the car.
When to Consider Drive-Away Insurance?
Consider drive-away insurance when purchasing a car for the first time. It helps those who cannot take out a long-term policy immediately after buying a car to get immediate coverage.
When Buying a Car from an individual.
When buying a car through a private seller, proof of insurance may be required immediately. Drive-away insurance can also help in that case.
When Buying a Car from Another State
If you are purchasing out-of-state, you should have insurance before bringing the car home. Drive-away insurance is the perfect solution to fill this gap.
When Buying a Car at an auction
Once you win a car at an auction, you cannot take it away without proof of insurance. Drive-away insurance is essential in such a situation.
Thus, it becomes important to consider drive-away insurance, as it provides immediate protection and legal coverage in various situations when buying a car.
