Transferring Your Auto Insurance to a New Car
So, you just got a new car? Whether the car is new or just new to you, the first thing you need to do is make sure that it is insured. Most dealerships, regardless of their size, will require you to show proof of insurance. Although your old car has insurance, when you get a new one it does not automatically transfer over. Call your agent and let them know that you are driving a new vehicle. They can help you determine your coverage needs whether they stay the same or you purchase additional coverage for your new ride.
Why You Should Transfer Your Auto Insurance
Imagine you just got your new car a few days ago and you wrote on your calendar to switch your insurance. Unfortunately, you got busy and forgot to do it. Now, you have been driving your new car for several months and your old car is still the one insured. One day, you’re driving to work when a deer darts out in front of your car. Because your old car only had liability, you may not be covered for the repairs of the damage caused by the deer. This is just one example of why transferring your policy to your new vehicle is so important.
When You Should Transfer Your Auto Insurance
Typically, when you get a new vehicle you will have a “grace period” of time to transfer your auto policy over to your new car. This time frame varies from state to state, so check how much time you have to transfer your policy. Generally, the temporary insurance only lasts for 30 days, so you should contact your agent as soon you get a new vehicle, even if you are keeping your old one. When adding a vehicle on to your policy or transferring your policy from your old car to your new one, you will need to provide your agent with:
- The year, make and model of the car
- The odometer reading
- The VIN number
- The registration or title
Once your agent has your new car information they will go over your current coverage and help you determine if it is still the right coverage for your new vehicle. Most of the time newer cars will cost more to insure than older ones. Another factor is the make and model of your car. Some cars, depending on their size and capabilities may cost more to insure than a small compact car for example.
Know What You are Getting
Before purchasing a car, do some homework on your top car choices and how much you should expect to pay for them. After that, talk to your agent to discuss how much insurance on each of these vehicles may run you. This will allow you to plan and budget for what your rates may be with your new vehicle.