Can I Backdate Insurance to Cover my New Car from Purchase?

Question: I bought a new car and kept it several days at home because I knew that my current insurer insures it automatically for up to 30 days. Can I ask them to backdate the policy coverage from the date of my purchase? I don’t want to explain to DMV why it was not insured from the start, if they ask.

Answer: If your auto insurer is already providing coverage for the car automatically as part of your standard coverage they may consider your request to backdate insurance coverage for the new car from the date you purchased. The thing is that this coverage would only be available for certain days. After that you will need to include your new car in your existing policy or buy a separate coverage. If you are asking them to backdate the coverage and give you a proof of insurance you are asking them to start insuring your automobile properly. That would require premium payment whereas automatic coverage for a new car may be provided free or for a small premium until you make suitable arrangement.

It is highly advisable to check alternative quotes before asking your current insurer to insure your new auto. Rates are usually different for each type of automobile that affects competitiveness of your current insurer. That is why you need to check if there is another company with cheaper premium for the same coverage.

Can Car Insurance Be Backdated?

In the above scenario, the vehicle was already insured automatically under a policy for another auto. It is totally different when you want to buy backdated car insurance coverage for a vehicle that wasn’t covered by any policy. It is your responsibility to insure your automobile. If you chose not to insure it you will have to face the consequences.

Hardly any company will stick the neck out for you because they are responsible for any past damages and incidents if they sell you a backdated auto insurance policy. Even if an agent somehow can backdate policies they wouldn’t do it. It is illegal to sell backdated policies in a few states and therefore it is fraud to do so. The agent would be charged for a crime and lose his/her license. Even it isn’t a crime in your state, an agent can lose his/her license if the insurance company learns about the practices of selling backdated policies.

There is a huge moral issue with backdating. Who would want to buy a policy if they knew they could buy backdated coverage whenever something happens to them or their possessions? That is why the practice of backdating auto insurance policies is not acceptable everywhere and even illegal in some state. 

People often ask do you need insurance to drive? You certainly do and you need to insure any vehicle that is driven or kept on public roads. As explained above you cannot expect someone to bail you out with a backdated policy if you get caught driving without insurance. That is why you should insure any vehicle as soon as you are responsible for insuring it. Furthermore, you should make sure that you don’t have a lapse in car insurance by mistake or otherwise.

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