Insurance Coverage When Buying A New Vehicle

By Author: Marcus Stalder
Total Articles: 491
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You're going to the dealer to get a new vehicle, and it's definitely a good day to remember. However, not all drivers remind of their auto insurance obligations before switching vehicles, and this can be quite complicated if you don't take the measures early. This is especially important if you're buying your first vehicle and never had auto insurance before.

Those car owners who already have insurance policies for their vehicles usually have a period of 14 to 30 days depending on the state, during which the coverage is spread on your new vehicle after purchase. Some providers can even offer a longer period to inform them about your new car, so it's always better to check the rules at your particular provider.

However, insurance experts recommend analyzing your insurance coverage before actually going to the dealership for the new vehicle, in order to make sure your policy has the necessary coverage amount for the new car. Otherwise, you may end up gambling during the transition period and if something happens on the road, it will be quite an unpleasant surprise to learn that your old policy is insufficient for ...
... covering the new ride. In most states the coverage remains the same when you're changing the vehicle, and this can be quite uncomfortable if you didn't have collision or comprehensive coverage with your old auto and now need it for the new vehicle. So paying your insurance agent a visit becomes really important in such a situation.

In case if you don't have an auto insurance policy when buying a new vehicle, in some dealerships you won't be able to drive the car off the lot. This certainly applies if you're using an auto loan. Moreover, when the dealer finances your purchase you my be obliged by the contract to purchase a specific amount of coverage from a particular insurer, which might be not the most competitively price offer you would get when comparing auto insurance quotes.

So it's particularly important to consult with your insurance agent or broker before making the purchase in order to assure that your new car is covered properly. Don't expect the insurance provider to do all the work for you even if you've decided to stay with the same policy after the purchase. You will still have to inform your provider about the purchase and tell all the specifications of the new car for the record. If you're buying your new car on the weekend, most insurance providers have 24/7 contact numbers that you can call to inform about the purchase, so don't lay it off, otherwise you can get in trouble if your provider finds out about the purchase only when you've filed a claim.

For those who are buying the new car using own money, getting car insurance quotes before the purchase is a must. Insurance companies have different claim history across car makes and models, and if your previous policy was very competitive for your old car, this doesn't mean that your rates will be as good for the new vehicle. If you manage to find really attractive car insurance quotes for the car you are looking forward to buy, it's reasonable to switch providers because there's no sense in overpaying for redundant coverage, right?