If you are a current customer that holds an auto insurance policy with ERIE, you can rest assured that, if you purchase a new car over the weekend when offices are closed, your vehicle is automatically covered. Although you do have coverage for your new vehicle, there are a number of important facts you should be aware of.
Coverage for an old vehicle never simply goes away when you trade in or purchase a new one. If your new car is titled in your name, your auto insurance coverage will carry over.
When you purchase a new vehicle to be added to your auto policy, it is covered.
When coverage is rolled over to a new car, you get the broadest coverage possible. What this means is the policy that contains the most coverage that is listed on your current policy is what will be applied to your new car.
Here’s a scenario to explain this situation in more detail. You’re married with a son or daughter who is of legal driving age. Your spouse’s new car is covered with the highest limits and multiple endorsements. However, you chose to not give your teenager the same coverages because they are driving a much older, high mileage vehicle. When you purchase the new car, the broadest coverage that is currently listed on your policy is what will be applied to your new vehicle, as stated above.
Here are a few exceptions to be aware of:
If your car is not insured with a policy from ERIE, your coverages will not automatically roll over to your new car. You must have a current ERIE policy to get this coverage. It’s best to call us at 301-948-2010 to speak with one of our licensed professionals to help you add the car to your policy before you drive off the dealership lot to go home.
If you buy a motorcycle or an RV, coverages will not roll over. The rollover only applies when you are purchasing a vehicle of the same type. To put it plainly, motorcycles and RVs are not sedans, so the rollover would not apply in such a case.
If someone at the car dealerships requests that you verify your insurance coverage before giving you the keys to your new ride, you can access you can access your auto ID card directly from your online account or your mobile app. You can also call us to have one of our agents email you a copy of your ID card.
If you are not exactly sure what kind of car you want to purchase, it’s best to call one of our agents to discuss possible makes and models of vehicles you are considering. One of our agents can tell you how the cost of your insurance premium will be affected based upon the kind of car you buy. They can also offer suggestions on how to save money on your auto insurance.
Once you purchase your new vehicle, here are three types of coverage you should be aware of:
Liability coverage: Inform us of your newly purchased vehicle before your current policy expires. If you buy the vehicle within 30 days of the end of your policy period, report that to us within 60 days of getting your car.
Comprehensive and collision coverage: When coverages roll over from an existing policy, the lowest deductible applies. If you didn’t have comprehensive and collision coverage on your policy for your old vehicle, coverages will apply, but you’re still responsible for a $500 deductible. Coverages cease seven days after acquisition of the vehicle or once your report it to us.
Here’s what we’ll need to know about your new car:
What is the year, make and model of the vehicle?
How many miles are you expecting to drive the car in one calendar year?
How far do you typically drive for work or for pleasure?
The vehicle identification number (VIN)
Titling and lienholder information for the vehicle
If I buy a new car, will my insurance cost increase?
New cars cost more than used cars, so they tend to cost more to insure. However, you can pay less for your insurance if you have a safe driving record or if your newly acquired vehicle has certain safety features installed.