Insure Your New Vehicle
Usually, once a car is purchased, you have up to a 30-day grace period to insure the new vehicle as long as you can provide proof of insurance before they hand over the keys. If you are in the market for a new car, it may be beneficial to check with your insurance company about how your insurance premium may change so you can budget accordingly. When you purchase a vehicle, some policies limit the coverage on your newly acquired vehicle to the same coverages as those vehicles already on the policy. For instance, if your current vehicle is liability only, the policy may not automatically provide physical damage coverage to your newly acquired vehicle.
Secure the Title
If you purchase a new vehicle in full or are buying a used car, you’ll need the current owner or dealership to sign over the title to you—indicating that you are now the owner. If you are financing a vehicle, it is likely you’ll not receive the title but instead they’ll send the information to your local agency for processing. Note, some dealerships will want to phone your insurance agent to make certain coverage is bound before you leave with the vehicle. Thus, having your agent's contact info with you is ideal.
Keep the Bill of Sale
A Bill of Sale is a legal document that should contain the following:
- Confirmation of the sale of the vehicle
- Transfer of possession to new owner
- Personal information of buyer and seller
- Description of the vehicle, including the VIN number and odometer reading
- Statement of price
- Terms of sale
Register Your Vehicle
Similar to insurance, you typically get a 30-day grace period to register your vehicle. In addition to temporary tags, dealers may provide a temporary registration that you can provide to authorities in the event that you get pulled over and have to prove ownership of the car. To register the vehicle at your local Department of Motor Vehicles (DMV), you’ll need the following documents:
- Title for the vehicle
- Bill of Sale
- Loan documents
- Proof of insurance
Additional notes:
- If the vehicle was purchased out of state or has an out-of-state title, a vehicle inspection may be required at your local DMV
- Check to see what your state’s policy is regarding License Plates—whether they stay with the vehicle or with the individual
Find a Safe Place to Store Your Vehicle Paperwork
As things come up involving your vehicle such as maintenance or registration renewal, you’ll likely need to provide the proper documentation. Thus, keeping all vehicle-related paperwork in a safe place can help speed the process along. Some items you’ll want to keep track of include the following:
- Title
- Loan documents
- Proof of insurance
- Maintenance history
- Bill of Sale
- Tax documents
Documents that should remain in your vehicle:
- Proof of insurance
- Vehicle registration