It is generally not legal for a dealership to allow a customer to drive off with a financed car without insurance. In most states, it is mandatory for drivers to have car insurance in order to operate a vehicle on public roads. This requirement applies to both owned and financed vehicles. Therefore, if a dealership allows a customer to drive off with a financed car without insurance, the customer could be breaking the law and face penalties such as fines or license suspension.
In addition, the lender who provided the financing for the car may also have specific requirements for insurance coverage. If the customer does not have insurance, the lender may purchase force-placed insurance on the car, which can be expensive and which the customer would be required to pay for. Alternatively, the lender may choose to repossess the car if the customer does not have insurance. Therefore, it is important for customers to ensure that they have the required insurance coverage before driving off with a financed car from a dealership.