Is my new car covered by my insurance? When you buy a new car, you often have to show proof of auto insurance coverage in order to be able to drive it home. Do to so, simply show them your current insurance card. If you already have insurance coverage on another vehicle, then your current coverage will generally transfer to the new vehicle automatically. All you need to do is call your insurance agent. You can do this before purchasing the vehicle if you already know which car it will be. If not, then you can call from the dealership after you’ve selected the car you want to buy. The agent will issue an insurance binder, which will serve as a place holder for coverage until the necessary paperwork can be completed to officially add your car to the coverage. If you forget to call right away, don’t worry.
Automatic Insurance Coverage for New Vehicles
The new vehicle will be automatically covered under the insurance policy for the first 14 to 30 days. Depending on the carrier of the insurance policy and the state of residence of the policyholder, the amount of time in which the insurance company must be notified of the new vehicle purchase will vary.Be aware that your rates may go up. In order to learn more details about how the new vehicle will be covered under an existing insurance policy, a policyholder can contact a knowledgeable independent insurance agent.
Depending upon the insurance company and the state in which you reside, you may have anywhere from 14 to 30 days before they must notify their insurance company of their new purchase. It is a good idea to notify your agent as soon as possible. If the insurance company is not notified within the required time period, the insured may have a future claim denied on their new vehicle, and would then be left paying any repairs out of pocket. An independent insurance professional can advise a driver as to what action may be required in order to maintain insurance coverage on their new vehicle.
Obtaining Auto Insurance Coverage for the First Time
If you have never owned a car—or car insurance—before, then there are some steps you need to take before you drive off the sales lot. Even before considering a car for purchase, find an independent agent with whom you are comfortable. You will need to meet with them in person, fill out some initial paperwork, and give them a deposit. This will help to pay for your premium once the car (and insurance) are officially purchased. After you buy the car, contact them again to let them know.
Purchasing Auto Insurance for Business Use Auto
Purchasing a new car that will be used primarily for business purposes is different. The car will need to have a separate business vehicle insurance policy. This will have higher limits of liability, which is important if you get into an accident and the other driver sues both you and your company. Make sure to speak with your agent before you buy the business vehicle so that it can be placed under the new policy right away.
Adding a new car to your insurance is a good time to do a general review of your policy. When you purchased your auto insurance, your agent gave you a copy of your policy. If you’ve lost your copy, then contact your agent. They will probably ask you a few questions over the phone to verify your identity. Then, the insurance company will mail you a copy of your declaration page. The declaration page lists the type of insurance and your covered risks, among other basic details. Buying a new car is a good time to review the policy to make sure all “household drivers” are reported to your insurance company. Also check your deductible and premium rates and limits of liability.
Never buy a car without having insurance first. In most states it’s against the law. You never want to find yourself in a situation where you are held legally and financially responsible for an accident. The purpose of insurance is to protect you against those risks.
To learn more about this process or get specific details about car insurance, an independent insurance professional can provide more information and help you to explore your options further. An independent insurance agent is an experienced advisor who can address any questions or concerns a driver may have about their new car being covered under their insurance policy.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
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