Drive-Away Insurance: What You Need To Know

Drive tow-away insurance is a type of insurance that covers the towing of a vehicle. Depending on the insurer and policy, auto insurance may cover towing up to a certain distance if a vehicle is disabled or involved in a collision. Drive tow-away insurance can also refer to a special type of short-term insurance policy that provides immediate coverage for a newly purchased vehicle, allowing drivers to protect their new vehicle until they buy a full auto insurance policy.

Characteristics and Values of Drive Tow Away Insurance

Drive-away insurance is a short-term policy for new vehicles

Drive-away insurance is designed to bridge the gap until a more permanent insurance policy can be put in place. It offers essential protection and can include liability coverage, which protects the driver if they are found at fault in an accident. This liability coverage extends to bodily injury and property damage sustained by others. Some drive-away insurance policies may also offer comprehensive and collision coverage, providing protection for damages to the new vehicle resulting from theft, vandalism, or accidents.

The duration of drive-away insurance policies can vary, with some offering hourly, daily, or monthly coverage. These short-term policies typically last less than six months, with many covering only 1 to 30 days. This flexibility makes drive-away insurance a convenient option for those who need immediate coverage without committing to a long-term policy.

It is important to note that drive-away insurance may have limitations in terms of geographical coverage and vehicle eligibility. Luxury cars, high-performance vehicles, or cars with unique features may have specific requirements or restrictions. Additionally, drive-away insurance is distinct from annual car insurance, which typically covers a full year.

Drive-away insurance is a valuable option for new vehicle owners, providing a temporary shield during the crucial period when they are acquiring their car. It ensures that drivers are protected and compliant with insurance requirements while they work on securing a long-term insurance solution.

It covers the journey from the dealership to your garage

Drive-away insurance is a short-term insurance policy that provides immediate coverage for a newly purchased vehicle. It is designed to protect drivers when they are in the process of acquiring a car and need temporary protection while sorting out a long-term policy. This type of insurance is especially useful when driving a new or unfamiliar car home from the dealership. It covers the journey from the dealership to your garage.

When you buy a new car, you want to make sure it is protected right from the start. Drive-away insurance can provide that peace of mind. It covers you in case of any accidents or incidents that may occur during the short trip from the dealership to your garage. This can be especially important if you are purchasing a high-value vehicle.

Drive-away insurance typically lasts from 1 to 30 days, giving you time to set up a permanent car insurance policy. During this transitional period, you can rest assured that you are covered in case of any unforeseen events. This is also helpful if you are waiting for your regular insurance to take effect.

In some cases, your dealership may offer short-term or temporary drive-away insurance. This can be a convenient option to protect your new vehicle until you buy a full auto insurance policy. However, dealership drive-away insurance can be expensive and inflexible, so it is important to consider your options carefully.

It's also useful when buying a car from a private seller

Drive-away insurance is a short-term insurance policy that provides immediate coverage for a newly purchased vehicle. This type of insurance is designed to protect drivers when they are in the process of acquiring a car and need temporary protection while sorting out a long-term policy. It is useful when buying a car from a private seller as it can provide the necessary coverage to drive the vehicle home.

When buying a car from a private seller, it is important to have insurance coverage in place before driving the vehicle. Drive-away insurance can provide this coverage, ensuring that you meet the minimum insurance requirements in your state. This type of insurance typically offers liability coverage, which covers damages or injuries you may cause to others in an accident, including property damage to other vehicles or structures, and medical expenses for the other driver or passengers.

In addition to liability coverage, many drive-away insurance policies also include collision coverage, which pays for repairs to your vehicle if you are involved in an accident, regardless of who is at fault. This can be particularly useful when driving a new or unfamiliar car home from the seller's location. Drive-away insurance can also provide peace of mind during the transition period, especially if you are purchasing a high-value vehicle.

When purchasing a car from a private seller, it is important to do your due diligence and thoroughly inspect the vehicle before making a decision. Test driving the car on a freeway and a highway can help you get a sense of how it handles and performs. Paying attention to vehicle mechanics, brakes, and the functionality of features like the air conditioner, heater, and radio is crucial. Additionally, having the car inspected by a trusted mechanic can provide valuable insights into its condition.

Overall, drive-away insurance can be a valuable tool when buying a car from a private seller. It ensures that you have the necessary coverage to comply with state laws and protects you and your vehicle during the transitional period before a permanent insurance policy is in place. By understanding the benefits of drive-away insurance, you can make informed decisions during the car-buying process and ensure a smooth and safe transaction.

Dealerships may offer drive-away insurance, lasting 5-10 days

Drive-away insurance is a form of temporary car insurance that provides coverage for driving a new vehicle home before a long-term policy is in place. It is ideal for drivers looking to insure their new vehicles for a short period. Dealerships may offer drive-away insurance as part of the vehicle purchase process, lasting 5-10 days. This can be a convenient option for buyers who need immediate coverage to drive their new car home.

While the specific terms of drive-away insurance policies can vary, they typically include liability coverage, which protects the insured if they are found at fault in an accident. This liability coverage extends to bodily injury and property damage sustained by others. Some drive-away insurance policies may also offer limited comprehensive and collision coverage, which can help address damages to the newly purchased vehicle resulting from theft, vandalism, or accidents.

In addition to coverage for accidents, drive-away insurance may also provide protection in the event of an accident with an uninsured or underinsured driver. This can include coverage for medical expenses and damages to the insured vehicle. Some policies may even include rental car reimbursement coverage, which can help cover the cost of a rental car if the newly purchased vehicle requires repairs.

For dealerships, offering drive-away insurance can be a valuable service for their customers. It ensures that buyers have the necessary coverage to drive their new vehicles home and provides peace of mind during the crucial period before a long-term insurance policy is in place. This type of insurance is especially important for used car dealerships, as standard insurance policies often have a 50-mile exclusion, which means accidents occurring beyond that distance from the dealership may not be covered.

Collision coverage pays for repairs if you're involved in an accident

Drive-away insurance is a short-term insurance policy that provides immediate coverage for a newly purchased vehicle. This type of insurance is designed to protect drivers when they are in the process of acquiring a car and need temporary protection while sorting out a long-term policy. The duration of drive-away insurance typically lasts anywhere from 1 to 30 days, depending on the policy and the driver's specific needs.

Now, let's focus on collision coverage and its role in repairs after an accident.

Collision coverage is a type of auto insurance that pays for repairs to your vehicle if you're involved in an accident, regardless of who is at fault. This coverage applies to a wide range of accident types, including those involving only your car (such as rolling over), accidents with objects (such as a phone pole or tree limb), and accidents with other vehicles. Collision insurance ensures that you are reimbursed for damages to your car, but it does not cover damage to other vehicles or objects, or for bodily injuries sustained in the accident. It is important to note that collision coverage only applies to the policyholder's vehicle and not to any other vehicles involved in the accident.

While collision coverage can provide peace of mind and financial protection, it is not required by state law. However, if your car is leased or financed, your lender or leasing company may require you to purchase collision coverage until the vehicle is paid off. Collision coverage is particularly beneficial for new drivers or when driving a new or unfamiliar car, as it can cover repairs regardless of fault.

In the event of an accident, collision coverage will pay for repairs up to the actual cash value of your car at the time of the accident. This means that the value of your car plays a role in determining how much coverage you'll receive. If you are found at fault in an accident, your liability insurance may cover damages to the other vehicle involved, but it will not cover repairs to your own car.

It is worth noting that collision coverage may have certain limitations or exclusions. For example, "limited collision" coverage, available in a few states, requires the policyholder to be not-at-fault for the collision in order to receive a payout. Additionally, collision coverage typically does not include damages unrelated to collisions, such as theft, natural disasters, or civil disturbances. To protect against these types of incidents, comprehensive insurance can be purchased alongside collision coverage.

Frequently asked questions