Drive away insurance is a form of temporary car insurance that offers coverage and protection for newly purchased cars or vehicles.
In other words, you get coverage from the minute you drive the car off the lot until you get or plan a longer-term form of insurance coverage.
How Does It Work?
When you buy or purchase this form of insurance, your coverage usually lasts for 1 to 30 days, which gives you sufficient time to prepare for a standard insurance policy for you and your new car.
Apart from that, with a drive away policy, you have the privilege to drive your vehicle legally after buying it. Hence, you have the peace of mind you need to finish up your long-term insurance preparation.
What Does Drive Away Insurance Cover?
For policyholders with drive away coverage, here are the scenarios of protections that can get:
- Damage to insured vehicle
- Third-party liability
- Fire
- Theft
What Does It Not Cover?
Here are some events that it does not usually cover:
- Mechanical breakdown.
- Pre-existing damage.
- Competitions or racing.
- Wear and tear.
Who Needs It?
You might want to consider purchasing drive away coverage if you are:
- A buyer of used cars.
- If you just bought a new car but do not have long-term insurance.
- Seller who needs coverage for test drives.
How Much Does Drive Away Insurance Cost?
The price of drive away insurance is determined by factors like your age, the duration of coverage, the value of your vehicle, and your driving history. The insurance company you choose also affects the cost of this type of insurance. However, keep in mind that this is more expensive than standard annual insurance.
How to Get Drive Away Insurance
There are several steps that you will need to perform if you would like to get drive away coverage from any provider. So, what are we waiting for? Let us dive into it. First of all, you need to:
- Explore insurance providers.
- Compare quotes.
- Pay attention to the necessary factors.
- Provide information about your vehicle.
- Provide your personal information.
- Choose coverage options.
- Select the policy duration.
- Make your premium payment.
- Get proof of insurance.
Now, you can finally drive with confidence with the help of drive away coverage. You do not have to worry about protection because you are already covered. Apart from insurance companies, there are many dealerships that provide temporary insurance policies as a part of their sales.
FAQs
Can I renew my drive away insurance policy?
Unfortunately, drive away insurance quotes cannot be renewed. Once the policy expires, you will need to get a standard insurance policy.
Can I drive my vehicle abroad with drive away coverage?
Coverage for driving abroad differs based on the insurance providers. This is because every insurance provider has their own terms. Some quotes may provide limited coverage for travel within specific countries or territories.
Can I add additional drivers to my policy?
Some insurance providers allow policyholders to include additional drivers for an extra fee, but this differs depending on the provider you choose or use.
Is drive away insurance expensive?
Yes, drive away insurance is more expensive than long-term insurance on a daily basis. Nonetheless, the cost differs based on certain factors like your driving history, age, and duration of coverage.
What happens if I don’t get drive away coverage?
If you drive a vehicle off the dealership lot without having insurance coverage, if you are involved in an accident, you are liable for legal and financial penalties.
But with a drive away policy, you have coverage from the minute you take the vehicle out of the dealership lot until you have a long-term insurance policy.
Is drive away insurance available for all types of vehicles?
Generally, drive-away coverage is available for most vehicle types, like motorcycles, cars, vans, and trucks. However, the eligibility criteria and coverage options may differ depending on the vehicle you are buying and the insurance company.
Does drive away insurance require a down payment?
The terms of the policy and the insurance company determine whether or not you will need to make a down payment for drive away insurance.
