Should I Buy an Insurance Plan Before or After Buying a Used Car? Which is More Profitable?

This is a common question that plagues a used car buyer’s mind. Should I buy insurance before or after buying my used car? If you want to buy before, you don’t yet know which used car you may buy and from where. And in case the purchase deal falls through, no insurance company will refund your money. Then again, if you decide to buy an insurance plan after buying a used car, you will not be allowed to drive out the vehicle from the dealership as it is illegal to drive in South Carolina without auto insurance. What should you do? Moreover, which pathway is profitable? Let’s explore these doubts here.

What if you buy auto insurance after buying a used car?

Naturally, you will now know which vehicle you are buying from the long list of used cars and used trucks for sale in Greer, SC and you can buy specific insurance that you need. Contact an insurance provider with the vehicle’s VIN and the agency should be able to give you a quote almost instantly. This process is only possible if you are buying on a weekday from a dealership. On weekends, most insurance companies stay closed and you may have to wait till Monday for the insurance papers to go through and take possession of the car. When you buy an insurance plan after buying your used car, you can cross the state’s insurance limit easily and complete the process with limited hassles.

What if you buy auto insurance before buying a used car?

Believe it or not, this is the recommended process of buying auto insurance in South Carolina. As you are looking into potential cars in used car dealerships in Greer, SC, you should simultaneously look into insurance plans. This way, you will not get a shock with the premium papers in hand as each type of used car comes in specific premium segments. If you buy before buying the car, you will know how much monthly premium you can afford and then fit a car accordingly in that budget. Going about it from the opposite direction can drive you to bite more than you can chew.

Settle on a car type or model. Take the VIN from the dealership and run it by different insurance companies to get numerous quotes. Pick the insurance provider who offers you the least premium price and get basic insurance that covers the minimum limits of your state. With the insurance in hand, you can head over to the dealership and buy your preferred used car. If necessary, you can always upgrade your plan based on your specific needs.

Which way is more profitable?

Naturally, buying insurance before buying a used car is more profitable. You can stay within your budgetary limits. Additionally, if you are financing your used car from one of the top affordable car dealerships in Greer, SC, or even a bank, the lender will want the car to be insured before you can take possession. Technically, during the financing period, the used car you just bought belongs to the dealer or the bank and any owner will like to see their car insured.

You can always insure your car after the purchase has been finalized, but then you will have to take the insurance plan on offer. You cannot compare between different companies. You cannot step down on a plan. These options are available when you buy the used car insurance before the purchase and you can factor in additional insurance plans like comprehensive and collision coverages depending on your budget. Hence, always look to buy insurance before buying a used car as this is indeed the profitable way.