When do I need insurance when buying from a dealership in MI?

Question

Alright, some basic facts.

This is my first time buying from a dealership and the first time putting a car in my own name and my first time insuring a car myself.

I'll be picking up a used ZX2 from a used car lot (Don't worry about that, I'm a former used bike salesman and currently do sales for mil spec hardware so I know the game and have a fair understanding of how cars work and what to look for to spot problems.).

With the private sales I have done in the past I have gotten the title signed and drove home, then gotten insurance then got the title, plate, and registration.

However dealerships are required to submit the title and paperwork for you to the SoS at the time of purchase.

The scenario I imagine is:

I pay for the car
they submit the paperwork for plate, title and regsitration
I drive home
I purchase insurance on the car
the insurance company reports electronically to the SoS that the vehicle is now covered
plate title and registration are sent out.

If anyone can help me out it is greatly appreciated.  And yes I have looked all over the SoS FAQ about buying and titling a vehicle for this info and could find none.

lucy · Accepted Answer

I guarantee you that prior to you driving off the lot, the dealer will require proof of insurance.

Call your agent and/or insurance company and give them the make/model/year plus the VIN number, which you will have on the copy of the agreement you signed with the dealer.  The agent and/or insurance company can then fax over proof that this car is insured.   

good luck

? · Answer

What happens if a drunk or  uninsured driver runs a red light and crashes into you on your way home, or you get struck by lightning or a thousand other scenarios that could damage the new car before you can get it insured?

You need insurance BEFORE you drive the car off the dealer's lot.  You already know what car you're going to buy.  Just call your insurance agent and give him the VIN.  He can fax a 'binder' or proof of insurance card to the dealer's office and you can have it before you drive the car home.

? · Answer

Car insurance http://buycheapcarinsurancequotes2016.com/

? · Answer

Try places like your bank as i got a very good quote from my bank. When i tried the comparison sites i found them all to be higher as companies pay to be put on them. The best thing would be look on the comparison sites then try the ones that don't show on them, Direct line don't go on these but that doesn't mean that they will be right for you. Sorry i could not be more help full but we all go through this good luck.

Verona · Answer

You should call up either the dealership or an insurance company that covers MI to find out for sure.

Anonymous · Answer

wrong. You need to have insurance before driving the car off the lot.

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When do I need insurance when buying from a dealership in MI?

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