Can I Get Car Insurance Before a Title Transfer?

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Updated: April 16, 2025

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Key Takeaways

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Most insurers accept a bill of sale, lease agreement or a bank statement as proof of ownership.

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You can get insurance before purchasing a car. Depending on where you live and how you bought your car, you may need proof of insurance before the title transfer.

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Add your new car to your insurance policy within the grace period to ensure coverage. If you already have a policy, you can update it before buying the vehicle.

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Can You Get Insurance Without a Title?

Insurers will sell you car insurance before you have a title. Most companies will start a policy without the title if you can prove ownership with a bill of sale, lease agreement or bank statement showing your vehicle loan.

Depending on where you live and how you bought the car, you may need proof of insurance before the title transfer.

Having insurance ready before the title transfer is a good idea. This ensures you're covered right away, especially if you plan to drive the car immediately after buying it.

How to Get Car Insurance Before the Title Transfer

You can and should get car insurance before buying a vehicle. Many states require proof of coverage for title transfers, and dealerships won't let you drive off without it. The process is straightforward when you know what to expect. Here's how to secure insurance before your new car is officially yours:

  1. 1

    Shop around

    Take time to compare auto insurance policies by contacting multiple insurers for quotes. Different companies may offer various rates for the same information. 

    After reviewing quotes and considering coverage limits, deductibles and customer reviews, pick the policy with the best value. When buying, set the effective date to match your title transfer so you're covered from the moment you take ownership.

  2. 2

    Provide vehicle details

    When contacting your insurer, have this information ready: the vehicle’s make and model, vehicle identification number (VIN), production year, purchase date and price.

    *Note: The VIN is essential as it provides specific information about the car, including its history, which can influence your insurance premium.

  3. 3

    Gather your personal data

    Your personal details affect your insurance premium. Your age, location and driving history influence how much you'll pay.

    Be prepared to provide your:

    • Full name
    • Address
    • Date of birth
    • Driving history
    • Credit score
  4. 4

    Get proof of insurance

    After finalizing your policy, the insurance company will give you proof of insurance, typically a card or document confirming your active policy. This proof is needed when transferring the title, especially if you're buying from a dealership or your state requires insurance. You'll also need to show it during traffic stops. 

    Many insurers now offer digital proof through smartphone apps, but keeping a physical copy in your vehicle is still a good idea, especially in areas with limited digital access.

Do You Need Insurance to Transfer a Title?

Having insurance before you buy a car makes the process smoother. Dealerships typically require proof of insurance before you can drive your new vehicle away. In some states, you also need proof of insurance when getting your car title, similar to the registration process.

Whether buying from a dealership or a private seller, understanding insurance requirements saves time and prevents delays. Here's what you need to know when purchasing a vehicle:

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    State requirements

    Some states require proof of insurance before allowing a title transfer. This ensures the new owner has coverage to legally drive the vehicle once the title changes hands.

    In Georgia, you must submit proof of insurance when transferring a title. Not all states have this rule. Some allow title transfers without immediate insurance proof, especially if the vehicle won't be driven right away.

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    Private sales

    In private sales, you might not need to show insurance to the seller. However, you can't legally drive your new car without insurance. It's better to contact your insurer before the sale.

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    Purchasing a car in a dealership

    Dealerships typically require proof of insurance before you drive off the lot. This protects their interests by ensuring the vehicle is covered once it leaves.

    Since most buyers drive away with their new car, having insurance ensures you're covered immediately.

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    Financing your car

    If you're financing a car, the lender will require comprehensive and collision insurance to protect its investment. Until you pay off the loan, the lender has a financial stake in the vehicle.

    While the title will be in your name as the registered owner, the lender will be listed as the lienholder. It might require proof of insurance before finalizing the financing agreement. You'll likely need full coverage insurance.

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    Buying a car for restoration

    Some states might allow a title transfer without immediate insurance proof if the car won't be driven. Check local regulations and consider getting at least basic coverage.

    Even if you don't plan to drive the car, you're responsible if it's damaged or stolen. Insurance protects you from financial liability in case of accidents or theft.

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    Buying a car for parts

    Some states might still require basic insurance or a specific title type (like a salvage title) for cars bought for parts. Always check local regulations.

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MONEYGEEK EXPERT TIP

Your state may not require insurance during a title transfer, but you almost always need it for registration. The DMV checks if your policy meets state minimums and gets notified if you cancel coverage. Verify your state's insurance requirements for registration.

Do You Need a Car Title to Get Car Insurance?

Car insurers don't always need a title to issue a policy. While they typically ask for the title to verify ownership and set rates, most will start coverage without it if you provide other proof of ownership, such as:

  • Bill of sale
  • Lease agreement
  • Bank statements showing a vehicle loan

Exceptions exist. Some insurers may require a title when buying from a private seller. Also, while your insurance company might not need the title, your state may require it for registration.

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INSURANCE REQUIREMENTS: CAR TITLE VS. CAR REGISTRATION

A car title proves your ownership and includes details like the VIN, make, model, year, and your name and address. Car registration is your vehicle's official authorization to operate on public roads. While your state might not require insurance proof for a title transfer, you'll likely need it to register your new car.

Will My Car Insurance Cover My New Car?

Insurance companies typically provide a seven to 30-day grace period to add a new car to your policy. During this time, your new vehicle is covered even if you haven't officially added it, allowing immediate worry-free driving. If you don't add your vehicle within this timeframe, you'll drive without insurance.

Not all policies include grace periods, which might not apply to financed vehicles.

Another option is updating your policy before getting your new car by setting the start date to coincide with your ownership. This ensures coverage as soon as you own the vehicle.

Can You Buy Car Insurance Before a Title Transfer: Bottom Line

Most insurers will let you start a policy without a title. Your location and purchase method determine whether you need insurance proof before a title transfer. You can show ownership with a bill of sale, lease agreement or bank statement showing your auto loan.

Even before transferring the title, it's smart to have insurance ready. This ensures immediate coverage, especially if you plan to drive your new car right after purchase.

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Getting Car Insurance Before a Title Transfer: FAQ

Below are answers to frequently asked questions about getting car insurance before a title transfer:

Can you get car insurance before the title transfer?

What type of car insurance do you need when transferring the title of a financed car?

How long do you have to get car insurance after buying a used car?

Auto Insurance Before a Title Transfer: Our Review Methodology

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We uphold high editorial standards through careful review. Our team researches, writes, fact-checks and edits each article to ensure accuracy and reliability. We prioritize transparency and focus on topics readers value by answering common questions. Every article goes through a rigorous process to ensure quality and relevance.

Car Insurance Before Title Transfer: Related Pages

About Mark Fitzpatrick

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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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