Buying a car can be exciting. You start searching for the perfect model. Then you begin imagining how you look driving it. The best part is thinking about all the new adventures you will have with your new ride. But before you get there, there are a few things to take care of. First, there is the car itself. Then, you must consider the price range and practicality. And once you have settled on a model within your budget, you now have to find a seller. After the transaction then comes all the paperwork.

It can be a smooth and easy process. The key is to do research and shop around. This way you find the best car model for your use. You also find the cheapest rates. Car dealerships typically sell for more, but you also pay for convenience. This is because they help you with all the paperwork on-site. In contrast, private sales can be cheaper, but you have to take care of everything else yourself.

Do You Have to Have Insurance to Buy a Car?

buy a car

Whether you are buying from a dealer or a private seller, you do not need car insurance to make the transaction. In other words, you can strike a deal and make your payment for the vehicle without car insurance. Depending on your province, it takes a few steps to complete private sales. In Ontario, this involves getting a Used Vehicle Information Package from the seller. The package includes everything from the vehicle’s model details, tax requirements, and bill of sale. It is now the buyer’s responsibility to complete the transfer. Buying from a dealer is more straightforward. You can fill in all the paperwork in their office once you have made the payment. As you can see, in both cases, car insurance was not necessary to make the purchase itself.

Do You Have to Have Insurance to Register a Car?

register

After completing paperwork and payments, you need to register your car. Before you can do that, however, you need insurance. This is because you have to show proof of insurance before you can register and attach the plates. If you buy your car from a dealer, they usually have an insurance broker in-house. The broker can help you sort out your insurance coverage right there. Car dealers usually also have a point person for registration. Once your car insurance is ready, this person can help you with the rest of the paperwork. You can then leave the lot with your new car and nothing else to worry about.

The process is similar if you buy from a private seller. This time, though, you have to do the legwork yourself. In Ontario, you have to bring the UVIP and the Application for Transfer to your local Driver and Licensing Office. Here you will present all the documents provided by the seller. You must also pay the licensing fees and sales tax. You must also present proof of insurance before you can attach your plates. Without car insurance, you cannot complete the process and register the car to your name.

Can You Drive a Car Off The Lot Without Insurance?

It is illegal in Canada to drive an uninsured vehicle. If you are buying your car from the dealer, this should not be a problem. This is because dealerships help with insurance on-site. As such, you need not worry about insurance anymore.

On the other hand, it is not as clear cut if you buy from a private seller. For example, maybe you have all the documents, but you do not have the time to register the car yet. The good news is most provinces in Canada give a grace period. This ranges from six to fourteen days. This is the length of time you can go without registering the vehicle after a private sale. It is important to note, though, that you can only do this if you have a valid insurance from your previous car. If you do, you must carry proof of this insurance along with the sales documents at all times.

However, if your previous insurance does not fully cover your new car, it is advisable that you amend this right away. If you get in an accident without the proper coverage, that would be more expenses for you. Likewise, if you have never had car insurance, you cannot drive the vehicle until you do so. If you drive without insurance, not only are you putting yourself at risk, but you will also face a fine and a serious violation.

Conclusion

car dealer

Buying a new car should be a fairly smooth process. You can do this by going to a car dealer, which is more convenient or going for a private sale, which is usually cheaper. By going to a car dealer, you get help on the spot for insurance, registration, and licensing needs. This means you can leave the lot with nothing to worry about. On the other hand, if you buy from a private seller, you need to take care of the rest yourself. This involves taking the paperwork to your local office yourself.

While you do not need to have car insurance to make the purchase, you need it to register the car. This is because you will need to show proof of insurance upon registration. Without insurance, you will not be able to license the car and attach the plates. Depending on your province, you have six to fourteen days of grace period to complete the transfer. In that time, you must drive the car with all the documents from the seller. You must also drive the car with your old car insurance coverage. If you do not have car insurance at all, then you cannot drive the car because it is illegal to do so in Canada. This can result in a fine of $5000 and can show on your driving record. As such, it is best to complete registration of your new car asap.

Resources:

https://jamiesarner.com/immigration-relocation-canada/how-buy-insure-register-car-canada/
https://www.carproof.com/resource-centre/articles/how-to-finalize-a-private-used-car-sale
https://www.ontario.ca/page/register-and-insure-vehicle-ontario