When does a new auto have to be added to my policy?
How soon does a new vehicle have to be added to my insurance policy?
When you decide to purchase a new automobile, the amount of time you have to add it to your auto insurance policy will vary according to two things - the statutes of the state you reside in and the company through whom you are insured. It is not wise to assume that your current policy and coverage will automatically extend to a newly purchased or leased car. That might not always be the situation.
The majority of automobile dealerships will require a would-be purchaser to provide current proof of coverage before they will allow the person to drive a new automobile off of a lot. If this is the situation you find yourself in, you should contact your insurance broker on the phone and immediately add your new vehicle to your existing policy. In order to avoid unnecessary risk taking, this may be the wisest course of action.
A dealership will normally provide what is called physical damage coverage. This form of coverage will cover damage to the car itself only, and it will leave you responsible to pay for any other ensuing costs for other parties. There is the occasional auto insurance company that will extend your coverage to a new car for a certain time frame without you having formally added the automobile to your policy. These companies are few and far in between.
There are several dealers who will extend coverage to you for a certain time frame after the date of purchase for the automobile. This amount of time is typically thirty days, although it varies from dealer to dealer. If you choose to utilize this option, be certain that you carefully scrutinize what forms and the monetary amounts of coverage that they are providing you with. Usualy, you will find that a dealership will not extend you liability coverage. This is the most basic form of coverage required by most states. It assists in providing reparations for another party's medical expenses and property damage repair cost if you are found at fault in a car accident.
In order to provide security and peace of mind for yourself, you should immediately contact your auto insurance provider upon purchasing a new car and inquire if your coverage extends to the newly purchased automobile. This will alleviate any misgivings or lingering questions concerning your coverage. It will allow you to enjoy your new car while still being within full compliance of the law. If your auto insurance company is not available for contact for whatever reasons, you may want to consider purchasing a policy with a different company immediately. This is why preparing yourself ahead of time by researching insurance rates is crucial.
There are many resources available to help a consumer compare insurance rates online. The easiest way to compare insurance rates will be to obtain auto insurance quotes. This allows you to receive instant price estimates from multiple companies on policies you may be interested in. You can use these quotes to find out what company will provide the best deal for your needs.
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