Do Unsold Cars Have Insurance?
2 Answers
Newly manufactured cars that have not yet been sold also have insurance, but there are differences in the types of coverage. Once the car is completed, it becomes part of the manufacturer's inventory, and the manufacturer will purchase cargo insurance to cover any losses during transportation. Upon arrival at the warehouse, the manufacturer will also purchase warehouse liability insurance to cover any losses during storage. Finally, when the car reaches the 4S store, the store will purchase property insurance for the vehicle. Comprehensive Insurance: New cars are not required to have comprehensive insurance in the first year; insurance can be purchased based on needs. Typically, new cars are insured comprehensively because the combination of a new car and a new driver is prone to accidents. However, in the second year of insurance, many car owners will choose their coverage based on their specific needs. Compulsory Traffic Insurance: When registering a new car, in addition to paying various taxes, the car buyer is also required to purchase compulsory traffic insurance, which is mandatory by the state.
I frequently communicate with car dealers and have learned that unsold vehicles indeed have insurance. Dealers typically purchase specialized inventory insurance for stock vehicles, covering risks such as theft, damage, or natural disasters. This is to protect their investment and avoid financial losses. Without such insurance, if an accident occurs, the dealer would have to pay out of pocket, which could impact the overall business. The insurance premium is borne by the dealer and included in operating costs. Once a customer purchases a new car, they need to arrange their own insurance. I recommend that everyone inquire about the insurance status when buying a car to ensure a smooth handover. Insurance coverage makes inventory safer, and I've seen many instances where vehicles were damaged by hurricanes, but insurance claims prevented a disaster. In summary, this type of insurance is an industry standard that protects the interests of all parties involved.
