When you buy a new car, you will need to get it insured before driving it. Some individuals may be confused about whether they should transfer insurance to a new car or cancel their existing policy and start with a new one. Consider your needs, the policy terms and conditions, price, and deductible before deciding whether to stay with your current insurer or look for a new insurance carrier.
Consider Your Insurance Policy Options
Auto insurance policies will protect you and other drivers if you are involved in an accident. Mandatory elements of auto insurance are necessary for you to drive the vehicle on the road legally. According to The Nest, not having the right coverage puts you at financial risk. Without car insurance, you will need to pay for the damage and potential compensation. If you have car insurance, your insurance provider will pay the amount of the claim, apart from your agreed deductible.
The basic auto insurance policy requirements vary from one state to another. In many states, you will need to have coverage for injuries and liability to drive your car.
Understand the Benefits When You Transfer Insurance To a New Car
The main benefit of transferring your auto insurance to a new vehicle is that it saves you time and potentially money. To proceed, you contact your existing car insurance company and request an updated quote for the new vehicle.
Online resources offer opportunities to find quotes online. If you are selling your old vehicle and buying a new one, you might simply transfer your car insurance to your new vehicle.
You may decide you don’t need to apply for a new policy; your car insurance company will arrange the transfer of the existing policy to your new vehicle. When you don’t have to apply for new insurance coverage, you can reduce the work it takes to insure your new vehicle and enjoy peace of mind that you’re driving your vehicle with the correct coverage.
Know How To Assess Your Needs and Vehicle Insurance Policies
Unless you purchase a new vehicle that is the same year, make, and model as your old vehicle, the chances are that your car insurance needs will change with a new vehicle. If your new car has a higher value, you will need a higher level of coverage. For example, if you’ve purchased a new vehicle and drive the vehicle more often, you may need to increase your vehicle’s collision coverage or opt for comprehensive insurance.
The good news is that if you decide to make changes to the type of insurance coverage you have, you can request amendments when you transfer insurance to a new car.
Keep in Mind Some Points To Transfer Insurance To a New Car
When you trade in your old vehicle, you leave the vehicle with the dealership where you’ve purchased your new vehicle. The dealership assumes control for what happens with the vehicle at this point. Once you’ve traded in your car, you no longer have responsibility for the vehicle. Read more about what you need to do after buying a car.
The following points can help you through the process:
- If you decide to contact your existing insurance provider and receive an auto insurance quote that you can’t afford for the new vehicle, don’t panic. While it may be more convenient to remain with your existing insurance provider, it may be time to shop around for quotes. If you’re able to obtain a better quote from another insurance provider, you may want to consider changing your insurance provider.
- When considering your insurance coverage options, make sure to leave time so that you can make a decision and avoid letting your insurance lapse. States require drivers to maintain vehicle insurance to operate their vehicles. You must maintain insurance coverage, even if it means having two vehicles covered under your policy for a short period.
- Be familiar with the process of registering a new car. Contact your auto insurance agent and provide information about the vehicle’s manufacturer and model year so that the agent can ensure your insurance policy reflects your new vehicle purchase.
- Once you have asked for the insurance policy transfer, request to receive a copy of the policy for your records. Most insurance agents will send you a confirmation via mail or email.
To get an auto insurance quote, you can request quotes online or by telephone to determine the level of insurance coverage you can get and the cost. Be specific with the information you supply so that you can receive the correct quote for your needs.
Don’t Overlook Transferring Your Auto Insurance Policy
No matter how busy your life may be when you’re purchasing a new vehicle, make sure you take the time needed to complete a car insurance transfer. According to Auto Insurance.org, letting your insurance lapse is a serious offense in most states. Suppose you don’t transfer your insurance to your new vehicle and drive the new car without insurance. In that case, you could put yourself at risk for a citation for operating a motor vehicle without insurance.
Insurance companies typically allow drivers at least 30 days to update their policy and transfer their insurance to a new vehicle. In this case, you still maintain coverage on your old vehicle, which can be helpful if you decide not to trade in your old vehicle immediately.
If unforeseen circumstances occur and you haven’t transferred your auto insurance policy upon purchasing a new vehicle, make sure you contact your insurance provider immediately to request an insurance policy transfer.
The process to transfer insurance to a new car may seem complex, but keep in mind that your auto insurance agent is available to help you through the details. With the information presented above, you’ll feel more confident to take the wheel of your new vehicle with an insurance policy suited to your needs.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
How Do I Transfer Auto Insurance to a New Car?
How do I transfer auto insurance to a new car purchase?
How to transfer your car insurance if you change cars during your policy term
How to transfer old auto insurance to your new car
Progressive: New Car Insurance
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