Question about insurance when buying a new car. (1 Viewer)

[RSF]

Someone (a crazy person whom I can't always trust) told me that when you buy a new car, the dealership provides short term insurance. Is that true? And if so, does it apply even if you don't finance?

 

[bclemms]

No, that is not true. This is why car dealers will not let you drive off the lot until they get proof of insurance if you financed a car. I think what this crazy person was thinking about is gap insurance.


Gap insurance simply covers the depreciating value of your car. In other words if you drive off the lot and get in a wreck with 15k miles on your vehicle then the insurance company gives you blue book value of 20k bucks. However, since you just bought the car for 25k thousand the gap insurance would kick in and cover the 5k difference.

Gap insurance does not come into play if you don't have insurance.

Car dealers do have insurance if you test drive a vehicle or get to test a car for a weekend but not after you purchase the vehicle.

 

[Leastbay]

they can set it to a certain date, I bought one at night once and couldnt change my policy, i bought the car but they just dated the insurance from the dealership like 2 days after, dont expect to be getting a whole month or anything

 

[peytonknows]

I always pictured you as more of a horse and buggy type RR.

 

[Pasty]

A true recluse wouldn't leave his cabin in the woods.

 

[efil4stnias]

Someone (a crazy person whom I can't always trust) told me that when you buy a new car, the dealership provides short term insurance. Is that true? And if so, does it apply even if you don't finance?

They sometimes offer 3 or 5 day PHYSICAL DAMAGE ONLY policies. That does not include your LIABILITY. All they wish to cover is thier ( the bank/dealership ) asset (the car). So if you hit someone, it will cover the damage to the auto but will not cover your liability in the event that the party you hit sustain physical damage and bodily injury.