Does my Current Auto Insurance Cover a New Car?

current auto insurance

If you already own a car, current auto insurance will cover a new car at the same level as your former vehicle. Current coverage lasts four days. For example, if you trade in a 2002 Ford Ranger for a 2019 Honda Civic, your Civic will be covered for four days under the coverage you have on your Ranger. If you don’t have comprehensive or collision coverage on your previous car, you won’t have it on your new automobile, says Neckerman Insurance Services. The automatic four-day coverage is the same as always. You must get in touch with your insurance agent as soon as possible if you want additional coverage for an automobile that you are financing or leasing.

Your new car will be covered to the same extent as the vehicle listed on your current insurance policy with the highest coverage level. Remember, this maximum coverage is only suitable for four days. Preparation is vital when speaking with an insurance agent about adding a vehicle to your coverage.

  • The vehicle’s make, model, and year
  • The vehicle’s year or model
  • VIN of the vehicle
  • Contact information for your lender or leasing firm

When buying your first car or renewing lapsed insurance, The Zebra advises getting insurance first. You can’t leave without it. Your new auto insurance is your obligation as the driver. Even if the dealership offers to buy you insurance, don’t rely on it. If you already have insurance, contact your agent before purchasing a new car to ensure that your current policy applies to your new vehicle. There are exceptions to the four-day automatic coverage norm in the insurance sector.

Is There a Grace Period for New Car Insurance?

Many insurance providers will give you a grace period for adding a new car to your coverage. Finally, it is up to the individual company to make the final decision. If you have an active policy, you may have up to two weeks to add a new car. Depending on your situation, your insurer may be prepared to extend the grace period. The grace period is up to one month. However, some insurance carriers do not provide a grace period, so verify with yours. Even if they give you a grace period, it’s usually advisable to add your new automobile as soon as feasible.

If you’re in an accident and still inside your insurance company’s grace period, your current policy will cover it. Existing coverage limits will apply. Your old automobile’s collision coverage will transfer to your new car. Remember that filing a claim will raise your insurance costs.

Even if you buy a car from a private seller rather than an auto dealer, you must insure it. Your insurance company’s grace period applies to both privately and dealer-purchased vehicles. It is also your job, not the seller’s, to secure insurance. Even though the vendor does not require evidence of insurance as a dealership would, this is still true. It’s best to get coverage before buying a car from a private seller, just like you would at a dealership. Also, compare rates to ensure you get the most outstanding deal.

current auto insurance

What Happens If My Coverage Stops?

Insurance Panda advises you to prevent lapses in auto insurance coverage. Insurance companies have grace periods for non-payment. In the event of an accident, you are uninsured. If you don’t have insurance, you’re solely liable for any harm you cause. Continued coverage would also result in higher premiums. A gap in coverage affects your insurance rate significantly. High-risk customers often have coverage gaps, and they pay higher premiums. If you have five years of continuous coverage, you may pay up to $216 less than someone with gaps in coverage. So, get insurance for your new car as soon as possible.

Insurance Grace Periods

Purchasing a new car is an exciting experience. However, it would be preferable if you did not overlook the process’s specifics, such as insurance. Don’t put off the decision for too long. Remember that the dealer will not do it for you. Check with your insurance provider before going into the store to see whether you have a grace period for adding the new vehicle to your policy.

If you lease a car, full coverage is required

If you get a car on lease rather than buying one, you’ll need to carry supplementary insurance. Most leasing firms require insurance coverage for physical damage. You must obtain collision and comprehensive coverage to get complete coverage.

Click here to learn more about auto insurance and if your current auto insurance will cover a new car.