It is so exciting to get to shop for a new car! Before you can drive away in your new ride, you will have to prove to the dealer that you have car insurance - what does this mean for you? Do you need to get new insurance before you buy the car or can your old insurance roll over?
The best thing you can do to be sure that you are covered when you get a new car is to check with your insurance company and see what their particular policy on this issue is. Whether you have to start a new policy or if your old one will roll over, here are some things to remember about auto insurance for your new car and how it transfers.
If you have just purchased a new car and you are trying to figure out how much of your insurance has transferred over to it, don't worry, at least some of your insurance policy always does transfer over for at least a short "grace period" - usually about 30 days. This means that the coverage you had on your old car does cover your new car, at least at the very minimum levels. But since your new car probably has new features and may be more expensive than your old one, you will want to get your insurance up to date quickly to make sure you are fully covered.
One option is that your policy will transfer over to your new car exactly as it was for your old car. If you have minimum liability only insurance coverage - minimum insurance required by the law - then it will most likely carry over, with the same minimum liability only coverage for your new car. If your new car is financed, you will need to add more coverage to your policy as soon as possible to include collision and comprehensive coverage.
If you have a more comprehensive coverage policy then some of it will most likely carry over onto your new policy but the majority of it will become ineffective when you buy your new car - only mandatory minimums will definitely carry over during the grace period and after that you might find yourself completely out of insurance. When then insurance you have purchased does not match the car you are driving, your insurance company can claim fraud and not be responsible to cover any damages. Since the amount of coverage and cost of coverage will change from car to car, you will want to make sure that you notify your insurance company as soon as possible to your changed vehicle so that you can get your new policy in place as soon as possible.
If you replace your old car with a new one and you have Comprehensive and Collision on your policy, Insurance companies will extend these coverage to your new car for 30 days without notification of the purchase. After 30 days, Comprehensive and Collision will not apply to your new vehicle, even though you may still be paying for them. If this happens, you'll be driving around without protection for damage to your own vehicle - a recipe for a bad financial predicament if you're at fault for an accident.
On the other hand, if you are adding an additional car to your family and you do not notify your insurance company immediately, none of the standard coverage will apply to that car. You have to notify the insurance company right away that you are getting another car.
Different auto insurance companies will have different rules when it comes to getting a brand new car and having your insurance carry over to it, the most important thing you can do is be in touch will your insurance company to make sure that your coverage will carry over or to buy new coverage to make sure that you are all set in the event of an accident.
The best thing you can do to be sure that you are covered when you get a new car is to check with your insurance company and see what their particular policy on this issue is. Whether you have to start a new policy or if your old one will roll over, here are some things to remember about auto insurance for your new car and how it transfers.
If you have just purchased a new car and you are trying to figure out how much of your insurance has transferred over to it, don't worry, at least some of your insurance policy always does transfer over for at least a short "grace period" - usually about 30 days. This means that the coverage you had on your old car does cover your new car, at least at the very minimum levels. But since your new car probably has new features and may be more expensive than your old one, you will want to get your insurance up to date quickly to make sure you are fully covered.
One option is that your policy will transfer over to your new car exactly as it was for your old car. If you have minimum liability only insurance coverage - minimum insurance required by the law - then it will most likely carry over, with the same minimum liability only coverage for your new car. If your new car is financed, you will need to add more coverage to your policy as soon as possible to include collision and comprehensive coverage.
If you have a more comprehensive coverage policy then some of it will most likely carry over onto your new policy but the majority of it will become ineffective when you buy your new car - only mandatory minimums will definitely carry over during the grace period and after that you might find yourself completely out of insurance. When then insurance you have purchased does not match the car you are driving, your insurance company can claim fraud and not be responsible to cover any damages. Since the amount of coverage and cost of coverage will change from car to car, you will want to make sure that you notify your insurance company as soon as possible to your changed vehicle so that you can get your new policy in place as soon as possible.
If you replace your old car with a new one and you have Comprehensive and Collision on your policy, Insurance companies will extend these coverage to your new car for 30 days without notification of the purchase. After 30 days, Comprehensive and Collision will not apply to your new vehicle, even though you may still be paying for them. If this happens, you'll be driving around without protection for damage to your own vehicle - a recipe for a bad financial predicament if you're at fault for an accident.
On the other hand, if you are adding an additional car to your family and you do not notify your insurance company immediately, none of the standard coverage will apply to that car. You have to notify the insurance company right away that you are getting another car.
Different auto insurance companies will have different rules when it comes to getting a brand new car and having your insurance carry over to it, the most important thing you can do is be in touch will your insurance company to make sure that your coverage will carry over or to buy new coverage to make sure that you are all set in the event of an accident.
About the Author:
About the Author: Ashley Jones is a car insurance advice columnist and blogger for Al Boenker Insurance based in Fort Worth, Texas. Jones specializes in helping Texans understand their car insurance policy and find the right coverage. Find out more about your Texas auto insurance coverage and learn more about how you can get the lowest rate on your Texas insurance at thanksal.com.
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