I’m planning to buy a car from someone who’s finishing off their loan. How soon can I get insurance for the car? Do I need to wait until the title is officially in my name, or can I insure it as soon as I pay for it? I know it can take a few weeks for the loan company to send the title to the owner, and then they’ll have to transfer it to me.
You’ll need insurance as soon as you file for the title and register it in your name. You can’t get the registration without having insurance first.
Make sure to get insurance before driving it on the road. You can set the insurance to start on a future date if needed, but don’t drive it home or anywhere else without coverage. If you drive without insurance and something happens, you’ll have a much bigger problem on your hands.
You should add insurance as soon as you sign the new title. Until then, technically, it’s not your car, so hold off until it’s official.
If the car isn’t officially in your name (title not transferred, not registered), you probably can’t insure it because it’s not legally yours yet. If you’re already driving it, you’re taking a risk. Make sure you trust the person to finish paying off their loan and transfer the title to you.