Over 170, 000 consumers have purchased a used vehicle through Carvana—Are you next? If so, before you make your purchase, you need to consider the car insurance requirements that you must meet. How do you provide your insurance information? Is gap coverage required? In this article, we answer the most important questions. 

Below, you can explore the various insurance requirements for Carvana, including the type of coverage you need and the exact moment you need to provide proof of insurance. Additionally, we discuss how you can find deals on car insurance by using insurance comparison websites like NerdWallet and The Zebra to compare rates.  

What Are the Car Insurance Requirements for Carvana?

Like traditional car dealerships, Carvana requires that all customers who purchase a vehicle meet specific insurance requirements. Before buying a vehicle with Carvana, make sure that you comply with these requirements and are prepared to present proof of insurance when the time comes.

When it comes to car insurance, here are four things you need to consider when purchasing a vehicle through Carvana:

  • Provide proof of insurance, including when and how
  • Determine what type of coverage you need
  • See if you are eligible for Carvana gap coverage
  • What to do if you return the vehicle within seven days

When Do I Need to Provide Proof of Insurance to Carvana?

If you’re a first-time car buyer, it’s possible that you don’t have car insurance yet. At Carvana, you don’t need to have car insurance at the time of purchasing a vehicle. However, you do eventually need to have car insurance and be able to show proof of it. If you don’t have car insurance at the time of making the purchase, you have until the date that you receive the car to provide your insurance information. Once you have car insurance, you have the option to present your proof of insurance by showing a print or digital copy to the Carvana representative the day you receive the car. For a convenient customer experience, buyers can choose to have their vehicles delivered to their house, or to pick the vehicle up at one of Carvana’s car vending machines. 

What Type of Auto Insurance Coverage Does Carvana Require?

The type of coverage you have on your car insurance policy typically depends on the amount of protection you desire. But, when purchasing a vehicle, you may have to meet certain coverage requirements. In general, Carvana encourages all customers to get full coverage. This is so that they can be as financially protected as possible in the event of an accident. However, having full coverage is not an insurance requirement at Carvana for all customers. Instead, the type of coverage that you need is determined by how you finance your new vehicle. Essentially, you have three options: Carvana financing, third-party financing, or cash payment. Below, you will find the coverage requirements for each of these payment options.

  • Carvana requires that all customers who finance with the company have full coverage that includes both comprehensive and collision coverage.
  • Customers who choose to finance their new vehicle with a third party should meet the minimum insurance requirements of the third party. 
  • Customers who pay in cash must have the minimum state liability insurance requirement from the state in which they register the vehicle.  

Before making your Carvana purchase, consider what type of coverage you have and how you plan to pay for the vehicle. This will make for a smoother financing process and prepare you to get the right type of coverage. As a rule of thumb, when purchasing car insurance, it’s  a good idea to review your state’s minimum requirements, too.

Is Carvana Gap Coverage Available to Me?

Gap insurance, also known as lease gap coverage, is optional. When a car gets totaled, gap insurance provides additional financial coverage for policyholders whose auto loans are larger than the car’s since-depreciated value. Most insurance providers offer gap coverage, but you can also receive gap coverage through Carvana. If you live in the following 14 states, you may be able to get Carvana gap coverage: 

  • Alabama
  • Arizona
  • Florida
  • Georgia
  • Illinois
  • Maryland
  • New Jersey
  • North Carolina
  • Ohio
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Virgina

What Happens to My Insurance If I Return the Vehicle?

Carvana understands that purchasing a vehicle is a big decision, and it doesn’t always turn out the way you expected. With all vehicle purchases, Carvana offers customers a “7-day Money Back Guarantee.” Given that you have met the requirements, Carvana will issue you a full refund for all of the money spent on the vehicle. Additionally, if you decide that you want to return the vehicle, a Carvana representative will come to you to pick up the vehicle. Carvana requires that you keep your car insurance activated until the vehicle is collected. To inquire about receiving money back on your insurance after returning the car, contact your insurance provider. 

Consider Your State’s Minimum Auto Insurance Requirements

Not only should you comply with the insurance requirements for Carvana, but you should also consider your state’s minimum insurance requirements. Forty-eight states require that drivers have car insurance, and each state has its own standards that all car insurance policies must meet. As a driver, it’s important to be aware of the legal requirements, especially in the event of a car accident. While some states only require liability insurance—which provides coverage for bodily injuries and property damage done to others—other states may require extra coverage, such as personal injury protection and coverage against uninsured/underinsured drivers.

Additionally, states can set a minimum amount of money that coverage must include. According to Policygenius, car insurance policies in California must provide $5,000 worth of coverage for property damage liability. In Kentucky, which has some of the highest car insurance rates in the country, drivers must be insured for $25,000 for bodily injury liability (per person). When starting a car insurance policy, your insurance provider can help you understand your state’s requirements and ensure that you are following the law. Once you meet the legal requirements, you can also add optional coverage to your car insurance policy, such as gap coverage. 

If you live in Ohio, check out our article on the 10 best places to get cheap car insurance in Ohio

How to Get a Deal on Car Insurance by Comparing Rates

Car insurance can be expensive, but one of the easiest ways to find the best deals is by comparing different insurance providers’ rates. Insurance comparison websites will be your best resource for evaluating your options. Insurance comparison websites allow you to see your cheapest options clearly, and even provide reviews and general tips about insurance. Most insurance providers will offer many of the same benefits, but insurance comparison sites will help you find the insurance provider that offers you the best value for your money. These sites also allow you to find deals on home and life insurance. Our article, “Top Car Insurance Comparison Sites for the Lowest Rates (2021 Review),” reviews some of the best insurance comparison sites available, including The Zebra, BestInsurer, and NerdWallet. 

Are you ready to save a ton of money on your car insurance? Use the button below to get a quote and see if you qualify for lower car insurance premiums:

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