Buying a vehicle, insurance

This page is for people buying new or used vehicles in the U.S. and getting vehicle insurance. Vehicle registration, title, and mandatory insurance amounts vary by state. Below, you will find the official checks to complete before buying, your rights when buying from a dealer, financing, state-by-state mandatory insurance amounts, and what to do in the event of an accident. For driver's licenses, see 10.1 Driver's License.

1. Recall search: Use the vehicle's 17-digit chassis number (VIN) on NHTSA's search page to check whether there is an open safety recall.
2. Title history (NMVTIS): The Department of Justice's National Motor Vehicle Title Information System shows the vehicle's current title information, latest odometer reading, history of brand labels such as "salvage," "damaged," or "flood vehicle," and in some cases theft records.
   • States have different branding rules and reporting levels; read the information with this difference in mind.
3. Independent mechanic inspection: According to the FTC, a vehicle history report does not replace an inspection by an independent mechanic. If the dealer does not allow an inspection, consider going to another dealer.
4. Buyers Guide: Dealers must display this guide on every used vehicle they sell. The guide shows whether the vehicle is sold with a warranty or "As Is." If it says "As Is – No Dealer Warranty," the dealer will not cover any defects or repairs.

• According to the FTC, a loan increases the total cost of the vehicle because you also pay the cost of the loan, including interest.
• Low monthly payment offers usually mean a longer term and higher interest. Look at the total amount you will pay.
• For building a credit history, see 10.2 Opening a bank account; building a credit score.
• For a vehicle purchased with a loan, the lender may also require collision insurance.
• Complaints about vehicle loans should be submitted to the CFPB, vehicle safety complaints to NHTSA, and dealer and warranty complaints to the state attorney general's office.

• You register the vehicle in the state where you live. The rules are provided by the state's DMV.
• Texas example:
  1. If you live in one of the 17 counties where emissions testing is mandatory (for example, Harris, Dallas, Tarrant, Travis, Collin, Denton, Fort Bend, El Paso, or Williamson), first pass an emissions inspection at an approved station.
  2. Show proof of insurance that meets the state's mandatory insurance amounts.
  3. Obtain the registration and sticker from the county Tax Assessor-Collector's office.
  4. You can renew online up to 90 days before the expiration date.
• New York example: even the road test is taken in a registered, inspected, and insured vehicle.

• The amounts below are legal minimums. The Illinois and Texas insurance departments state that these amounts may not be sufficient in a serious accident and that you should consider obtaining higher coverage.
• New York
  • Bodily injury: $25,000 per person ($50,000 in the event of death); $50,000 per accident for multiple people ($100,000 in the event of death)
  • Property damage: $10,000 per accident
  • No-Fault coverage: up to $50,000 per person
  • Uninsured motorist coverage: same as the bodily injury amounts
• New Jersey: liability insurance is mandatory for every registered vehicle. Driving an uninsured vehicle carries fines and driver's license penalties. Contact the state's Department of Banking and Insurance for the amounts.
• California
  • Injury or death of one person: $30,000
  • Multiple people: $60,000
  • Property damage: $15,000
  • If you are involved in an accident and do not have sufficient insurance, your license may be suspended for up to 4 years, regardless of who was at fault.
  • Check that the insurer is licensed by the California Department of Insurance. The California Low Cost Automobile Insurance Program is available for low-income residents: +1 866 602 8861.
• Texas
  • "30/60/25": $30,000 bodily injury per person, $60,000 per accident, and $25,000 property damage
  • Personal injury protection (PIP) is included in every policy; if you do not want it, you must reject it in writing.
  • Uninsured/underinsured motorist coverage must be offered to you; if you do not want it, you must reject it in writing.
• Florida
  • Property damage liability: $10,000 per accident
  • Personal injury protection (PIP): $10,000 for medical expenses and disability, and $5,000 for death coverage
• Illinois
  • Bodily injury: $25,000 per person and $50,000 per accident
  • Property damage: $20,000 per accident
  • Uninsured motorist coverage: $25,000 per person and $50,000 per accident

• Liability: in an accident where you are at fault, it pays for the other party's vehicle and the medical expenses of injured people.
• Collision and comprehensive: these pay for damage to your own vehicle. These coverages have a deductible, not a coverage limit.
• Deductible: the portion of the damage that you pay. The Texas Department of Insurance's example: if the damage is $1,500 and your deductible is $500, the company pays $1,000.
• Uninsured/underinsured motorist: protects you in accidents involving an uninsured or underinsured driver and in hit-and-run accidents. In Texas, this coverage will not pay if you do not report a hit-and-run accident to the police.

• According to the California handbook:
  • You must stop. Leaving the scene is a crime with serious penalties (hit-and-run).
  • If anyone is injured, call 911 immediately. If no one is injured, move the vehicle out of traffic and then call 911.
  • Show your driver's license, vehicle registration, insurance information, and address to the other driver and the police.
  • If someone is injured or dies, file a police report within 24 hours.
  • If you hit a parked vehicle and cannot find the owner, securely leave a note on the vehicle with your name, phone number, and address, and notify the police.
• For police stops and traffic tickets, see 12.9 Traffic tickets and police vehicle stops.

• NHTSA — vehicle safety and recalls
  • Vehicle Safety Hotline: +1 888 327 4236 (TTY +1 800 424 9153)
  • Web: nhtsa.gov/recalls
• Texas Department of Insurance (TDI) — insurance questions and complaints
  • Phone: +1 800 252 3439
• Illinois Department of Insurance (IDOI)
  • Address: 115 S. LaSalle Street, 13th Floor, Chicago, IL 60603
  • Phone: +1 312 814 2420
• New York Department of Financial Services (DFS) — insurance
  • Web: dfs.ny.gov
• California Low Cost Automobile Insurance Program
  • Phone: +1 866 602 8861
• CFPB — vehicle loan complaints: +1 855 411 2372 · consumerfinance.gov/complaint
• State attorney general's office — dealer and warranty complaints: USA.gov list

• Buying a used vehicle without checking the VIN and showing it to an independent mechanic.
• Assuming that a vehicle marked "As Is" has a dealer warranty.
• Assuming that you have the right to return the vehicle within 3 days after the sale.
• Looking only at the monthly payment and failing to calculate the total cost of the loan.
• Settling for the state's minimum insurance amounts and being underinsured in a serious accident.
• Leaving the scene after an accident or failing to report a hit-and-run driver to the police.

• Where can I learn about the vehicle's history? Check recalls through NHTSA and title and brand history through NMVTIS. Also have an independent mechanic inspect it.
• Can I return a vehicle I bought from a dealer? Federal law does not provide a 3-day right to return it. Ask the attorney general's office about your state's rule.
• What insurance should I get? At least coverage meeting your state's mandatory amounts. Insurance departments recommend considering higher coverage.
• I do not want PIP in Texas. You must reject it in writing to the company.
• Is an emissions inspection mandatory everywhere? In Texas, it is mandatory in 17 counties before registration. Check with the DMV in other states.
• Can I take the vehicle to Türkiye? For Türkiye's customs rules, see 11.9 Items moved to Türkiye and bringing in a vehicle.

• NHTSA – Recall search (VIN)
• NMVTIS – Vehicle title history
• FTC – Buying a used vehicle from a dealer
• Texas – Vehicle insurance guide
• Illinois – Vehicle insurance shopping guide
• New York – Vehicle insurance information
• California Driver Handbook (PDF, insurance and accident section)
• Texas.gov – Vehicle registration
• USA.gov – Where to submit a vehicle complaint