Automotive

Getting insurance on a new car

  • Last Updated:
  • Apr 14th, 2021 9:02 pm
[OP]
Newbie
Oct 22, 2006
74 posts
10 upvotes
Mississauga

Getting insurance on a new car

Newbie question, but I haven't been able to find a clear answer from Google.

I am picking up a new car from the dealer this week. I will buy insurance beforehand. This is my first car in a while.

I have to buy insurance beforehand. I realize it's a very small possibility, but if the car deal falls apart, what do I do about the insurance. Am I stuck with paying the one year of insurance?
12 replies
Deal Expert
User avatar
Jul 30, 2007
31544 posts
18274 upvotes
Toronto
You can be insured, just matter of how much the premium is going to be. Since you are not too familiar with insurance matter, maybe you should enlist an insurance broker to help you out.
Deal Expert
User avatar
Mar 22, 2007
28017 posts
8186 upvotes
Hamilton
You need VIN to buy insurance.
hated on but respected.
[OP]
Newbie
Oct 22, 2006
74 posts
10 upvotes
Mississauga
Thank you all for the suggestions.

I am fine with paying a percentage penalty, in the rare instance the deal falls apart.
Deal Addict
User avatar
Oct 13, 2007
4227 posts
3095 upvotes
Edmonton
DQM wrote: Newbie question, but I haven't been able to find a clear answer from Google.

I am picking up a new car from the dealer this week. I will buy insurance beforehand. This is my first car in a while.

I have to buy insurance beforehand. I realize it's a very small possibility, but if the car deal falls apart, what do I do about the insurance. Am I stuck with paying the one year of insurance?
How can the deal fall apart? Typically, you sign all the papers and then arrange a pick-up date.

Don't buy insurance until the deal is finalized. If you are using a broker, you can call the broker and he can bind insurance immediately (assuming that you have a quote in place).
Sr. Member
Oct 4, 2010
802 posts
429 upvotes
Surrey
Here in BC, the insurance agents are happy to meet you at the dealership when you pick up the car. Then you buy insurance after you take delivery of the car before you drive off the lot. Not sure why you have to buy several days or weeks before hand, is that an Ontario thing?
Member
User avatar
May 31, 2008
417 posts
678 upvotes
GTA area
DQM wrote: Newbie question, but I haven't been able to find a clear answer from Google.

I am picking up a new car from the dealer this week. I will buy insurance beforehand. This is my first car in a while.

I have to buy insurance beforehand. I realize it's a very small possibility, but if the car deal falls apart, what do I do about the insurance. Am I stuck with paying the one year of insurance?
When calling to get the quote and insurance, mention this to them. It's very likely they will allow you to cancel if you call the same day you are supposed to pick up the car, or worst case have to pay a small cancellation fee. You will not have to pay for one year of insurance.
Deal Expert
Mar 23, 2004
32359 posts
14001 upvotes
Insurance like most anything else you buy from a company is going to be a contract. The terms of the contract may have a minimum coverage term or period for which you must pay even if you cancel. This could be a percentage, it could be 1-3 months worth of coverage, or some fixed monetary penalty amount. Find out what the terms are before agreeing to anything or paying any money. If it's something you're not comfortable with, move on to the next company; or, just make sure the deal goes okay and let the dealership know you will pick it up the next day, later in the day, etc. when you've got insurance on it.

I'm not sure how exactly the "deal is going to fall apart" if you're already to scheduled to take delivery this week, but I get that odd things happen on the rare occasion. The only thing I can really see causing "the deal to fall apart" at this stage is a vehicle presented to you that is significantly different than described or on the papers you signed, or something like the day you're supposed to pick it up some accident happens and it gets crashed/crashed into before you take possession.
[OP]
Newbie
Oct 22, 2006
74 posts
10 upvotes
Mississauga
I called a couple of insurance companies and they said I would have to pay for the days used, not the entire year, which I can definitely live with.

In terms of the deal falling apart - I suppose I'm being ultra cautious in not wanting to be on the hook for a 1000 plus dollars in case there are problems. I agree the odds of that are slim.
Newbie
Nov 23, 2014
92 posts
103 upvotes
Regina, SK
You typically need the Bill of Sale in order to register the car. So:
1. buy the car.
2. Leave car at dealership while you register vehicle and get insurance
3. Return to dealership, put plate on car, leave
Deal Fanatic
User avatar
Mar 1, 2005
6092 posts
3887 upvotes
Toronto
New car or new to you car?

Never had a dealer give me my new car the same day as the paperwork, usually have to come back later to pick up the car, in that time I bought insurance for it.
:arrowd: B/S/T Threads :arrowd:
[FS] N/A
[WTB] N/A
Deal Guru
User avatar
Jul 12, 2003
12333 posts
4843 upvotes
Toronto
Your salesman will able to tell you an approx date of delivery of your new car. Then tell insurance agent that you want the coverage to start at that date.
If your deal failed, i suppose your salesman will let you know AT LEAST a DAY in ADVANCE? Then call the insurance to cancel it before the coverage start, then you pay nothing.
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