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Why do you have to pay insurance when purchasing a car?

Updated: 8/19/2019
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13y ago

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There are a number of reasons, two of which include:

1. The financial responsibility law of every state requires liability auto insurance as a condition of registration. This ensures that the owner has some minimum level of insurance that will answer to an innocent party if the insured vehicle's driver is negligent (careless) and causes damage to the person or property of the innocent party.

2. If the vehicle is financed, the lender will require collision coverage. This provides a source of money from which the car can be repaired in the event of a collision. The lender is concerned with this because it loaned money based upon the value of the undamaged vehicle. Repair may therefore restore (most) of the value of the repaired car.

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Q: Why do you have to pay insurance when purchasing a car?
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It might be cheaper to buy car insurance on line only because of the volume they have.Remember, you get what you pay for and I like having a real agent I can talk to when purchasing car insurance.


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Yes, there may be benefits to purchasing car insurance directly from an insurer over the internet. Geico is a large internet insurer who provides car insurance at a discount.


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What happens if you have no insurance and you totaled your car?

you will have to pay a debt and GET CAR INSURANCE


How long do you have to get auto insurance after purchasing a car?

You must have auto insurance before you drive the car off the dealer's lot.


What happens if a car hits a tree will insurance pay?

Yes your insurance will pay for it because if you have good insurance it will pay for it


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Will your car insurance pay for the car that your son hit even though he is not on your insurance?

if he is not on your insurance he is required to have his own insurance otherwise he is driving your car without insurance with or without your permission illegally so no it will be the get out clause the insurance company will use not to pay out and why should they pay for someone who has not paid for there services