I plan on picking up the car later in the week and transferring the funds then and having to drive it about 2 hours home, do I need to be getting insurance lined up before I transfer the funds and complete the sale or should I organise the insurance after I've paid all the money for the car?
Just Bought a Used Car - When to Get Insurance?
JimmyJohnson on 02/06/2025 - 15:41
Comments
Most insurance has a get out clause should you not go ahead. Generally can cancel in 14 days (check first).
Insure just before funds transfer would be wiser.
When to Get Insurance?
Before you drive it.
When you own it, which could be before before you drive it.
Not true, you can insure a car that is owned by someone else if you are the driver…
I would make sure it is insured from the second that you legally own it, whether or not you have driven it and whether or not you are in possession of it.
You are liable for anything that happens to it and and damage it may cause from the moment you become the legal owner of it.
Imagine if a bucket of paint got splashed on your car a moment after you became the legal owner.
If insured, your insurance can fix it and chase down who was at fault if possible.
Same if it got stolen before you took possession of it.
Tree fell on it
Any number of catastrohes and Murphy's Law says, if it's not insured, something will definitely happen.
May as well start it today, especially when transferring the money. If it burns down, it'll be covered and you won't lose your money.
You should have insurance on it as soon as you own it. Definitely before driving.
And just in case:
Compulsory third party only covers people. Not other property. Some states this is included in the rego. Nsw at least reqhires purchass of a separate policy.
Third party property (TPP) will covsr damage to other cars and property if you cause a crash, but wont cover repairs to your vehicle and wont cover damage to your vehicle caused by someone else. You would need to xhase them or their insurer for restitution. Some policies may privide you some cover ($5k) in the event an uninsured driver hits you.
Comprehensive adds cover for damage to your vehicle caused by yourself (but you pay an excess) or caused by another party (you may need to pay a excess to start a claim but it will be refunded if you are not at fault)
If you cannot afford to lose the car to a crash, you cannot afford to not have comprehensive.
When you pick up the car get the seller, I assume private, to write a receipt with something along the lines of….
I, [insert seller here] sold 2023 Porsche 992 911 GT3RS with VIN [insert VIN] and registration FUKYEH to Jimmy Johnson on 2/6/2025 at 2:27pm for $690,420
$690,420
Nice.
Actually it would be an excellent price assuming low mileage.
WTF, Why is this getting downvoted? This is 100% the right thing to do. Transfer of registration is NOT considered as transfer of ownership.
You should ALWAYS get a receipt from a seller when buying a vehicle, even if you take it yourself and get the seller to sign it over to you…
I even supplied a dummy contract previously that people can copy and use it for themselves.
Jimmy Johnson
@Jimothy Wongingtons???
Good insurance covers any care you drive doesn't it?
You are confusing RACV total care road side assistance with insurance.
I think you mean good insurance covers anyone who drives the vehicle. Insurance is most commonly attache to a vehicle.
However, many moons ago my mum was involved in a bingle while driving an uninsured vehicle belonging to her recenlty deceased father. Somehow the insurance she had on her car covered at least some of the damages.
lol after you smash it
as to OP's question - @JimmyJohnson
do I need to be getting insurance lined up before I transfer the funds and complete the sale or should I organise the insurance after I've paid all the money for the car?
Around same time … but 100% BEFORE you go to pick it up.
insurance companies have a cooling off period (14-21 days) … so even if purchase of car doesn't go through - can easily get your $$$ back from insurance company, RE: new policy.back in the day - this sort of thing used to be called a "cover note" … insurance company covering you, until proper policy was mailed out to your physical address.
these days - with email/online … "cover notes" essentially don't exist.You just ring up insurance company of your choice - provide you/car details + when you want the insurance policy to start from.
With the last (2nd hand) car I purchased - RACWA allowed me to as specific as XX date at 10am … as that was when I was picking it up from dealership.
crash first then get insurance
I've heard some people do this, but instead claim it happens the day after the get insured.
No way that's going to raise and red flags lol
The Ozbargain way
lol
Amazing isn't it?
A grown up asking this question on 2025.It’s Ozbargain.. half the people on here can’t think for themselves or do any kind of research.
Before the accident is preferable.
Get a quote and a cover letter before you pick it up
That was the good old days. These days they mostly want you to pay up front with a period of time you can cancel and get a full refund.
Cover notes finished up in the late 90s early 2000s
Yeah,these days it's basically a virtual one given with a live policy quote, (it comes with a few disclaimers around based on facts given etc) active for a 24 (48?) period.
100% before you drive it, my cousin bought a car, didn't insure it and had a accident on the drive home which wrecked the car.
TThis is a true story. A friend of mine in the USA gifted his son an Audi for his 18th birthday. As soon as his son drove the car out of the showroom, he got into a T-bone accident.
The car was a total loss. Fortunately, my friend had asked the dealer to arrange insurance before his son took it on the road, so he was able to recover the full value of the car.
There are many people on here that believe that buying insurance after an accident is a great money saving hack.
You can organise a quote and set a future date for cover to start.
You can also sit in the car at the dealer and call your insurance company before driving off the lot.
Never drive an uninsured car.Insurance companies do have a start time just a start date.
If you are completing the purchase and pick up on say the 10 June 2025 take out a policy now starting on that date you're picking it up.
That way it won't matter if you're picking the car up at 12:00am or 11:59pm on that date it will be covered (or even a few days latter)For some reason you decide to pull out of the purchase of the car you will get a full refund.
should start the day you're picking it up