Do I need proof of insurance when buying a used car? (2026)

Do you need proof of insurance to buy a used car? Let’s dive into the answers in detail, so you understand everything you need to know before purchasing a used vehicle.

Looking to buy auto insurance for a used car? Keep reading to learn how to get proof of insurance before buying a car, whether used or new.

If you’re wondering how to get insurance on a used car, use our free quote tool above to instantly compare rates for used cars insurance from the top providers.

You Need Proof of Insurance When Buying a Used Car

Do you need proof of insurance to buy a car? While private sellers may not check your insurance, most dealers require insurance before finalizing a car sale since they register the car for you and it’s a legal requirement to drive. So, you usually can’t buy a used car without insurance.

Anyone looking to buy a car — new or used — has to purchase their state’s minimum auto insurance before registering the vehicle and getting license plates. Depending on whether you’re financing the purchase, you’ll also need other documentation, such as proof of income, identity, residence, and similar documents.

The first requirement is insurance. If you’re financing your vehicle, you’ll likely need full coverage — if not, you may only need liability or your state’s minimum coverage.

If you purchase your car from a dealer, be prepared to provide proof of insurance. You’ll also need to give them a copy of your driver’s license, financial documents, and a filled-out registration form, among other documents.

Why Dealerships Require Full Coverage

A top question readers ask is, “Why does the dealership need proof of insurance?” When you take out a loan to buy your vehicle, the lender is the car’s legal owner until you pay off your loan. By requiring full coverage, the lender minimizes their financial risk if the vehicle gets damaged or lost with a remaining loan balance.

Full coverage is usually required when financing a car, whether new or used. To get an idea of what full coverage might cost you, we pulled the National Association of Insurance Commissioners (NAIC) average rates for various core coverages that you may be required to carry to purchase a vehicle:

Average Auto Insurance Rates by Coverage Type Across the Country

If you owe money on the car, you’ll need comprehensive, collision, and possibly uninsured motorist coverage. Essentially, your lender wants to protect its interest in the vehicle if the car gets damaged or totaled while you still owe money on it.

How to Show Proof of Insurance When Buying a Car

How do dealerships verify insurance? Showing proof of insurance at a used car dealership is a simple process, and there are many ways to do it. You can show proof with a physical or digital copy of your car insurance card, which must include your policy number, effective date, and coverage details.

Read More: How to Get a Copy of Your Auto Insurance Card

So, why does the dealership need my insurance? Most states require some form of car insurance coverage to drive legally, so dealers want to ensure the vehicles they sell are insured before they exit the lot.

Do car dealers call your insurance? Yes, dealerships often call to personally verify policies are valid when selling a vehicle.

More About Getting Proof of Insurance to Buy a Car

Do I need proof of insurance to buy a car? Yes, and getting proof of insurance for buying a car, used or new, isn’t difficult. Once you buy the policy, you can go to your insurance company’s website, log in, find your insurance ID cards, and print them out.

You might also be able to use an app on your smartphone to access your ID cards. Print them out and bring them with you to the dealership or submit them online if the option is available. You’ll also usually receive cards in the mail.

Whichever method you use, ensure you have proof of coverage handy before buying a used car.

Ready to buy insurance for your used car? To make sure you have the coverage you need to purchase your used car, enter your ZIP code now to compare used car insurance rates in your area. Which auto insurance company is for you? Find out now.