Buying a new car is exciting, and there is a lot to keep track of about what needs to be done, from title transfers to notifying your state's department of motor vehicles. When you are changing or upgrading vehicles, it is especially important to ensure that you maintain continuous car insurance coverage throughout the entire process. Whether you are keeping your old car or getting rid of it, the exact mechanics of how to transfer car insurance when upgrading vehicles can be obscure. Here is what you need to know:
Check with your insurance company in advance.
If possible, prior to purchasing a new vehicle, contact your insurance company and notify them of your intended purchase. Your insurer should be able to provide you with a rate quote for the new vehicle's year, make and model. However, if you are unable to speak with your insurance company prior to upgrading your vehicle, your new vehicle will still be insured for up to 30 days under your existing policy.
In addition, some lenders require both collision and comprehensive coverage before they will complete a loan. If these circumstances apply to you, then you will want to contact your insurance company and add collision and comprehensive coverage to your policy prior to completing your new car purchase. The dealership may not allow you to leave the lot without proof of insurance.
?Your coverage will not change.
It is important point to keep in mind that your policy will remain the same for your new vehicle as it was for your old car. This means that your insurance carrier will extend your existing coverage for up to 30 days to your replacement vehicle. However, if your vehicle does not have collision or comprehensive coverage, then a replacement vehicle will not be protected by either. The same is true of your liability coverage.
Notify your car insurance company as soon as possible.
The clock is ticking on the 30-day grace period from the moment you purchase the car. If an accident occurs before you have notified your carrier, then it will likely result in a coverage investigation, and you will have to prove the date and time of purchase of the replacement vehicle to your insurance company. If you forget to call within 30 days, then your current car insurance plan will not cover your new vehicle at all.
Communication with your car insurance company is the most important part of assuring continuous car insurance coverage while you are upgrading vehicles. Take the time to notify your carrier within 30 days of your new car purchase, and be sure to review your policy to ensure that you are thoroughly covered.