By: Gov Auctions | 27 February 2014
Auto Insurance – What Do You Need When You Buy at Auction?
Auto insurance is often one of the most overlooked aspects of buying a car at an auto auction. There are a number of variables which will determine how much insurance you should have and how much it could cost. Many people don’t realize that certain types of vehicles may not even be insurable until they are repaired; this is especially true if you are attending a salvage auction.
Depends on What Type of Cars You Are Buying
A huge factor which determines the type and amount of auto insurance you need when you buy at an auto auction is the type of car. There are two variables to consider. The first is the value of the car. For example, if you attend a US Marshal’s auction there will likely be more than a handful of extremely expensive or exotic cars. Obviously if you spend a lot of money on a car at auction you need to get enough coverage to protect yourself financially. The second variable is the type of title the car has. If it has a salvage title it may not even be insurable.
Take Advantage of Instant Online Insurance if You Drive It Home
One of the best ways to protect your investment immediately following an auto auction is to take advantage of instant online insurance. You can pay for a month’s worth of insurance which will give you time to switch your newly purchased car over to normal insurance provider. This is especially important if you plan on driving the car home. Just because the odds of an accident are slim, you truly have no idea how the car will handle until you start driving it.
Are There External Factors That Will Affect Your Insurance Requirements?
Finally, there are numerous external factors which may affect your insurance requirements when you buy at auction. For example, if you are buying a car that will need repairs before you drive it then insurance may not even be necessary. Another factor is how you are paying for the car. A growing number of lending institutions will allow you to get a loan before the auction to pay for a car. If you choose this route then there is a high probability they will require full coverage the moment you buy it at auction.