Will Insurance Cover an Unregistered Car?

by | Feb 17, 2024 | Insurance | 0 comments

Ensuring financial safety and protecting your assets is a valuable practice. In simple words, buying insurance is crucial for your belongings. Auto insurance leads the industry in most cases. However, specific legal queries may arise, the most common being, “Can you insure an unregistered car?”

Many of you might wonder if their insurance will still cover them even if their vehicle has yet to be registered.

As a general practice, the first thing you do after purchasing a car is to get it registered. This is not only a legal requirement but also an essential formality for vehicle identification and insurance coverage in case of accidents or theft. 

Driving an unregistered vehicle may lead to hefty fines of up to $1000, impoundment of the car, and possible license suspension.

In most states, registration requires intact insurance policies. So, yes, insurance provides coverage for unregistered cars for a certain period before imposing fines. Hence, the registration status does not affect insurance claims. 

Types of Insurance for Unregistered Cars

You may not get all the benefits your policy holds for an unregistered car. Still, you indeed get enough to help you sleep peacefully at night.

1. Liability Coverage 

Liability insurance is a basic necessity for unregistered vehicles and is typically mandatory. If you get into an accident or damage your car in unavoidable circumstances, insurance provides coverage for it. 

The liability insurance cost varies depending on factors such as your driving history, type of vehicle, and chosen coverage level. It safeguards your finances by covering costs in case of at-fault accidents where you hear law-suit bells.

Uninsured Motorist Coverage

2. Uninsured Motorist Coverage 

Uninsured motorist coverage is a savior for policyholders. While this policy isn’t mandatory, it fills the gaps in liability insurance. It provides excessive protection to your unregistered vehicle that meets with an accident involving drivers with inadequate insurance.

This coverage shields against financial liabilities from collisions with underinsured drivers or uninsured vehicles. So, it covers expenses for repair and medical treatments.   

3. Collision Coverage

The most helpful policy for brand-new vehicles is Collision Coverage. As the name indicates, it provides coverage for damage to unregistered cars resulting from collisions and offers financial protection.

It is optional but recommended to protect against costly repair bills.

Premium costs for this policy vary based on factors like vehicle value and driving record, emphasizing the importance of balancing premiums against potential repair expenses.

4. Comprehensive Surety

Who doesn’t like some extra protection for their valuables that even covers accidents other than collisions? This is when Comprehensive Surety comes into play.

Though not a legal requirement, it is a smart option for unregistered transportation. This policy covers accidents like theft, vandalism, or damage caused by natural disasters. This can spare you from personally covering these finances, which would otherwise be a heavy financial burden.

5. Storage Assurance

Suppose your unlisted vehicle is parked in the garage. In that case, it is still liable to Storage or Laid-up Assurance insurance. Its policy is the same as Comprehensive Safety but specifically for the project or stored cars. It protects against vandalism and covers in case of theft. The value set is dependent on auto cost and driving history.

6. Transportation Allowance 

Transportation surety covers the risks posed while shifting your vehicle from one place to another. In case you’ve bought a new car from a different place and need it to be transported to you safely and soundly, this is the coverage you need. It’s also used when moving a vehicle to a workshop or delivering to a new owner across great distances.

How Do You Secure Assurance for an Unregistered Car?

Step 1: Find a provider specializing in providing conditional surety for non-standard.

Step 2: Assemble your ownership proof. Gather company purchase documents in case of a new car or case of transfer if you’ve bought a second-hand car.

Step 3: You will also need your valid driver’s license and Transport Identification Number; thus, we recommend you keep it handy.

Step 4: Get multiple quotes from various insurance providers and stick to the best-provided package.

Step 5: Avail insurance and enjoy a stress-free drive in your vehicle.

What Is the Assurance Cost of an Unlisted Car

What Is the Assurance Cost of an Unlisted Car?

Here are some numbers for you to have an idea about general insurance costs: 

Insurance Policy Monthly Cost Annual Cost
1. Liability Protection $30-$40 $350-$400
2. Uninsured Motor Coverage $5-$10 $136
3. Collision Cover $32 $381
4. Full Allowance $167 $2008

Note: These prices may vary from state to state and, of course, your insurance provider.

Driving an Automobile Without Registration and Safety Policies

Driving an unidentified or uninsured automobile can result in severe penalties and personal liabilities. You risk heavy fines, license suspension, and vehicle confiscation without mandatory registration. 

In an accident, you may be liable for medical expenses, property damage, and legal fees, putting your assets at substantial financial risk. Moreover, it can raise suspicions of fraud and theft, which may result in further investigation.

Final Thoughts

Unrecorded automobiles on the road entail significant risks and legal repercussions. Therefore, even driving an unregistered vehicle with insurance is a better option and is essential for your financial safeguard. It ensures peace of mind and financial security in unforeseen circumstances.

After all, don’t we all agree that precaution is better than cure?

Patience Noah

Patience Noah migrated to the United states in 2003 after the Liberian Civil War. She attended the University of Massachusetts Dartmouth and got her B.A in Marketing. After graduating college in 2013, she started her career in the insurance industry cold calling.

Related Articles