autohitch logo
Will Insurance Cover an Unregistered Car

Will Insurance Cover an Unregistered Car

So, will insurance cover an unregistered car?

The answer depends on several factors. Keep reading this guide to understand when coverage applies, avoid driving violations, and learn registration/insurance compliance laws.

Key Takeaways:

  • Temporary insurance from dealers covers unregistered new cars for ~30 days. But driving after expiration risks fines and voided policies.
  • Limited options like storage coverage may protect inoperable/undrivable unregistered vehicles.
  • Driving uninsured, unregistered cars on public roads leads to legal and financial consequences.
  • Each state and insurer has specific unregistered car rules – check theirs directly.
  • The best practice is registering ASAP and maintaining insurance without gaps in coverage.

Relevant Articles To Read:



Will Insurance Cover an Unregistered Car Temporarily?

Yes, most dealers include 30 days of insurance so new owners can drive before registering with the DMV. This coverage protects against liability claims or damage repairs during the initial post-purchase period.

However, continuing to drive on expired temporary tags cancels the policy and risks over $500 in fines. It’s illegal even with insurance.

Unregistered Car Insurance for Inoperable Vehicles?

Special policies cover unregistered cars stored long-term or under repair/restoration. Options like:

  • Classic car coverage – protects stored antique/collectible vehicles
  • Storage insurance – covers repairs for damage from disasters, vandalism, theft
  • Comprehensive coverage – fire, flood, weather damage (not collisions)

These only apply to inoperable vehicles not driven on public roads. Work with your agent to understand specific exclusions.

Consequences of Driving Uninsured Unregistered Cars

Aside from voiding insurance, civil and criminal penalties await those caught driving unregistered vehicles on public roads:

  • ~$500 first offense fine
  • ~$1000 for second offense
  • Registration revoked after third offense
  • Possible license suspension
  • Impound fees and towing costs

Uninsured drivers also fully liable for all accident damages, injuries, and related lawsuit costs.

When Can You Legally Drive Unregistered Cars?

Very limited circumstances exist where driving unregistered is allowed:

  • Test drives arranged by auto dealers
  • Agricultural equipment on private farmland
  • Certain off-road recreational vehicles

Check state laws for other rare exceptions. And contact the DMV about temporary movement permits if necessary to bring an unregistered vehicle to registration appointment.

What Types of Unregistered Car Insurance Are Available?

Those needing coverage for a non-operational or in-restoration unregistered vehicle can explore:

Liability Coverage

  • Injury/damage protection for at-fault accidents
  • Typically required minimum coverage
  • Won’t cover your own vehicle repairs

Comprehensive Coverage

  • Protection beyond collision damage (fire, weather, theft)
  • Optional but recommended for valuable vehicles
  • Cost varies by value, location, driving history

Collision Coverage

  • Repair coverage for crash damages
  • Especially useful on newer/expensive vehicles
  • Also optional but has high payout value

Uninsured Motorist Coverage

  • Protects policyholder when other driver lacks sufficient insurance
  • Not mandatory but closes liability insurance gap

How Much Does Unregistered Car Insurance Cost?

Average Annual Unregistered Car Insurance Costs

Coverage TypeAverage Cost
Liability$133/month
Comprehensive$330/month
Collision$345/month
Source: These are estimates based on actual monthly average rates by coverage level from various well-known insurance companies

Exact rates depend on policy details, vehicle, driving record, and location. Shop around to find the best premium costs.

How Can I Get Insurance for an Unregistered Vehicle?

Follow these steps when obtaining coverage for an unregistered car:

  1. Research specialty insurers – Find companies covering high-risk drivers or non-standard cases
  2. Gather paperwork – Driver’s license, VIN documentation, ownership proof
  3. Get quotes – Compare premium estimates from multiple carriers
  4. Compare policies – Evaluate coverage specifics, exclusions, discounts
  5. Purchase suitable insurance – Complete application and pay first premium

Reputable agents help explain all available options too.

Can I Register a Car Without Insurance?

New Hampshire and Virginia don’t mandate insurance for registration. But other states require minimum liability coverage beforehand.

Lapsing insurance eventually cancels registration in most locations. And citations for uninsured vehicles occur in states lacking insurance prerequisites.

Either way – continuous insurance remains the best practice despite registration status. Gaps risk fines, revocations, higher renewal rates, and accident expenses.

Key Takeaways: Unregistered Vehicle Insurance Guide

  • New cars have temporary coverage but require quick registration
  • Limited specialty policies protect stored collector vehicles
  • Driving unregistered cars illegally voids insurance
  • Required insurance varies by state but has extensive penalties
  • Uninsured motorist coverage supplements liability gaps
  • Compare specialty insurers to find affordable premiums

Following state laws and understanding insurance exclusions prevents unregistered car problems. Reach out with any other questions!

Sources For This Article:

You might also be interested in reading:

Steve Momot - Author

Steve Momot - Author

Steve, a seasoned expert in the automotive industry, formerly held a car dealer license in Florida. With extensive experience spanning across car trading and mechanical work, he founded Autohitch. His mission? To guide both buyers and sellers through the intricate maze of car purchasing, ensuring a seamless and informed experience. Outside of the automotive world, Steve has a passion for fishing and capturing the beauty of nature through photography.

Linkedin

Share on.

wpChatIcon