Whether or not it is mandatory to show proof of insurance when leaving a car dealership lot will depend upon state laws as well as the dealer's own guidelines.

If the state requires car dealers to check for proof of insurance before allowing a car off the lot then it will need to be done. If the state does not have such requirements then it will be up to the dealership's own internal rules and guidelines.

If you have an existing policy, most states have a "grace period" of replacement coverage. If you are buying a new insurance policy then you should have that in place before you drive off of the lot and take possession of the vehicle.

Some dealer's may mandate that a person show proof of insurance when leaving with the car they purchased to lessen any perceived liability. Another factor may be if you financed the car through the dealership. If you did so then it is likely they will require you to obtain auto insurance before taking ownership of the car.

Your state's insurance regulatory body may be able to tell you if the state mandates that dealers see proof of insurance before allowing a person to leave the lot with a motor vehicle.

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