I’m buying a new car, what do I do about car insurance?
Buying a car is a big investment, so it’s important to notify your insurance agent as soon as possible of a recent purchase to make sure you have the proper coverage. But if you’re buying a car over the weekend, don’t worry…you normally have a few days leeway. Most insurance companies provide automatic temporary coverage for new purchases equal to the broadest coverage you have on your current car.
Will the dealership notify my insurance company when I buy a new car?
No, this is your responsibility. It’s best to not rely on the dealership to do this for you.
How much time do I have to add a new car to my existing car insurance policy?
Some insurers will stretch your current coverage for a limited period of time to protect your new vehicle. This gives you a grace period to notify the company that your old car is gone and that you now have a new one. You’ll want to notify your insurance agent as soon as possible. You usually have around 15 days before you have to update your policy with your new purchase. To find out specifically how long you have before you update your policy with your new car, your best bet is to call your insurer and ask them.
How do I know if I’m getting the best deal?
You shop! Your current provider may no longer be the most affordable option for the car insurance coverage you’ll need for your new vehicle.
Also, other providers may have additional products and offerings that better suit your new needs. We recommend that you ask around and get a at least 3 to 4 quotes for the type of vehicle you’re looking to buy so you’ll know what to expect. If you end up deciding to switch companies, make sure to find out exactly how long your current car insurance will extend, and make sure you have an exact start date for your new policy and end date for your old policy.