Buying a new car is not always a simple process. There are a lot of different factors that go into making the decision on which car you should purchase. Everything from color, fuel economy, price, condition, to the quality of the stereo system, it’s definitely an important decision you will make. But, how do you know if the car you purchased is covered under your current auto insurance policy?
Whether your new car is covered under your auto insurance policy depends on several factors:
- Types of Coverage:
- Comprehensive and Collision Coverage: If you have comprehensive or collision coverage on your existing car, those coverages might extend to your new car for a short period. Most insurance policies offer a grace period (typically 14-30 days) after purchasing a new vehicle. During this period, your insurer will often automatically extend your existing coverage to the new car.
- Liability Coverage: If you only have liability insurance, it may not automatically extend to the new car. Liability insurance typically covers damage to other people and their property, not your own vehicle.
- Insurance Company Policy: Every insurer has different rules about coverage for newly acquired vehicles. Some may automatically extend coverage, while others may require you to notify them about the new car right away.
- State Requirements: Insurance requirements and rules can vary depending on the state where you live, so it’s important to verify what applies to your specific situation.
What You Should Do:
- Check with Your Insurer: It’s a good idea to contact your insurance company as soon as possible to confirm whether your new car is covered and for how long.
- Update Your Policy: Once you confirm the coverage, you’ll need to add the new car to your policy officially, especially if you need to adjust the coverage limits or add additional protections (e.g. gap insurance, comprehensive, or collision coverage).
If you’re unsure about your current coverage or need help navigating the details, give us a call at 301-948-2010.