NLIC.org

Willard Said:

If you buy a new used car does your insurance policy/costs change?

We Answered:

You'll have to have the title signed over if you're buying from an individual. If you're buying from a dealer, then whoever you get your loan through will keep the title until the car's paid off. Kind of like collateral. If you default a payment, they have the right to take the car until payment is made.

As for insurance, your policy doesn't have to change, but you must make them aware of the vehicle switch. Your insurance will probably be lower. It's based on a lot of factors including car color, miles, year, type (sedan/compact, hybrid/gas, etc).

New title costs vary from state to state, but a dealer should always have the title. Rarely will you find a car without one.