Did the New Year mean a new car for you? Boy, wouldn’t that be nice to purchase the latest and greatest model each year? Or, maybe you have a newly licensed driver that is in need of wheels? Whether you are replacing an existing vehicle or adding another vehicle to your household, it’s very important to be cognizant of how these two scenarios affect your insurance coverage!
First of all, it’s very important to have an existing personal auto policy in force. With an active personal auto policy, there will be some amount of automatic coverage for a specified number of days. The number of days for automatic coverage depends on state regulations AND whether the vehicle is a new or replacement vehicle. There are also stipulations as to whether your auto policy’s automatic coverage provides liability only or full coverage (comprehensive and collision coverage). Your independent insurance agent will help you answer any coverage-related questions.
Car dealers will want to confirm that you have auto insurance in place before you drive your new vehicle off the lot. But what if it’s Saturday afternoon at 3:00 p.m. and you’ve found THE car of your dreams? Your insurance agency is closed. What do you do? In most cases, it is sufficient to provide a copy of your current insurance card and/or copy of your current auto declaration page confirming you have insurance. This should satisfy the dealer’s proof of insurance requirement. However, it’s very important to follow-up with your agent the next business day to add the newly purchased vehicle to your policy.
A few takeaways:
- When shopping for a new vehicle, have the insurance ID card for your current vehicle on hand at minimum. It may be helpful to also have a copy of the declaration page from your auto insurance policy. Consult with your independent insurance agent on your coverage needs.
- Remember each state has different guidelines in regards to automatic coverage so check your policy.
- Contact your insurance agency to add the vehicle to your personal auto policy the next business day.
Lastly, drive safe and enjoy your new ride!