Insurance Considerations Before Registering Your New Car
Posted on: 6 June 2018
Check with your state if you will need to insure your car before registering it. In some states, you may be required to insure your car before registering it. For example, in the state of New York, you will need to have automobile liability insurance coverage before registering your car. In some cases, you make get insurance for a car that is not in your title. If you use another person's vehicle on a regular basis, it may be advisable to an auto insurance policy in your name to protect yourself from any liabilities.
In most states, you will need to insure your car in the state that you register it. If you register your car in one state but insure it with an out of state company, you may face penalties, and the insurance company may not pay your claim. In some cases, you may even be investigated for insurance fraud. Even if you are living temporarily in another state, you may be required to insure your car in that state. Therefore, before moving to another state permanently or temporarily, you will need to check with your insurance company and with any registration regulations in the state that you are moving to. If you are a parent, and your child is going to college in another state, and you are the primary driver of the car, you may need to make your child the primary driver in the state that the child studies. This will make your child the primary driver in the insurance.
When buying a car out of state, it is advisable to check with your state's DMV for regulations that may prevent you from registering your car. If you buy your car from an auto dealership, some of the important paperwork will likely be handled by them. If you buy from a private seller, you may have to handle the paperwork entirely on your own. Buying a car from a private seller may mean that you have to work on your own with DMVs from both the state that you purchased the car in and the state in which you live.
Your personal car insurance may also be canceled if you use your vehicle for delivery of items or people. If you as a driver transport people through Uber, Lyft, or any other ridesharing company to make extra income, and you use your private insurance, your insurance may be canceled by the insurance company for breach of terms. You may have to purchase some type of commercial insurance. Hence, if you decide to become an Uber or Lyft driver, you will need to contact your insurance company to inform them of your decision. In addition to insurance, if you decide to become a driver for a ridesharing company, you will need to find out what your state's regulations are to become an Uber or Lyft driver.
For more information, contact your local title and registration office.
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