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Having a new car is an exciting prospect, but you want to make sure that you are covered to drive the new car as soon as you buy that. Every state requires that you carry a minimum amount of liability insurance policy on your vehicle. Some states also have requirements for uninsured motorist coverage. If you buy the car at a dealership with a finance, the financing lender may also have requirements for your insurance cover.

Does My Current Policy Cover My New Motor vehicle?

transfer auto policy to new carYou want to be included in insurance when you first drive the new car off the lot. A lot of car insurance companies insure you against liability even if you drive one other vehicle other than your own. If your policy allows for this policy, then you are technically covered when you drive the car away from the lot.

However , the coverage you have may not really be plenty of. If you are going from a 10-year-old car to a brand new one, maybe you don’t have enough coverage with your existing policy. In addition , assuming you have liability only coverage on your old vehicle, that is all that you will have with the new car until you get the new motor vehicle added to your insurance policy.

Before You Buy the Car

It is a good idea to contemplate car insurance before you ever make the purchase of a new car. For anybody who is debating between several different makes and models, you might check with your new driver insurance broker for quotes before you make a purchasing decision. Car insurance monthly payments can vary widely between makes and models. You may want to make your decision on the amount car you buy based on how expensive the new insurance shall be.

Changing Your Policy Online

Most car insurance companies have an internet platform where you can make changes to your policy. If you know just what coverage you need, this can be a viable option. If you go of which route, you’ll want to add the new car to your coverage as soon as you can. You will also want to remove the old car if you ever sold it or used it as a trade in.

If you ever keep the old car, you must maintain insurance on it despite the fact that aren’t going to be driving it. State law requires for you to always have at least liability insurance on any registered car or truck. Make sure that you don’t remove the old car until it has been distributed if you didn’t use it for a trade in.

Contacting Your current Agent

There are some good arguments for contacting your realtor directly by phone or in person rather than making insurance policy changes online. If you aren’t sure what coverage you have to, you are better off contacting your insurance agent and discussing the idea with them. The agent will be best able to make sure that you will be adequately protected and are getting the best rate possible with their provider.

The best policy is to call your insurance agent before you previously leave the dealership with the new car. Contacting these folks as soon as the purchase is made ensures that you are covered from the moment people drive the new car off the lot. Often your broker can make the changes to your policy immediately, with any manipulation in the premium being paid within a set number of days.

Labeling your insurance agent before you leave the dealership has other merits. If your lender requires specific coverage for your vehicle in the contract, you can be certain to meet those requirements if you have the adviser there with you when you make the call to your agent. Your own personal dealer that arranges the financing can explain what exactly coverage you need so that you can be protected and in compliance with all your financing contract.

Does Your Policy Start Over?

Your policy word, in most cases, will simply transfer to the new vehicle. You will not should start over with a new six month or one-year policy. This is usually a positive thing, because with the new vehicle you may be able to get better rates some other place. After you have transferred your car insurance to the new car, find when your current policy ends. You can then shop around for some quotes to see if you can get a better deal through another company rather then renewing with your current company.

The Bottom Line

Transferring your car insurance plan to a new vehicle is a fairly simple and straight-forward approach. Whether you make the changes to your policy online or right with your agent, it is easy to get the coverage you need to make sure you are covered, within the law, and within your financing contract requirements.