People can get excited about buying a new automobile and pressured to make rushed or unnecessary policy decisions when they may already have insurance coverage. If you meet the following conditions, you may not need to deal with it urgently. Depending on circumstances, company and state, you may be able to take it home that allows you to make necessary arrangements in a timely manner.
In terms of insurance, the key concern is not the car purchase but wanting to drive it immediately. Many vehicles are bought for different reasons and they may not be driven immediately and transported to their new home. For example, someone can buy a classic, old or damaged car and put it at the back of a truck to take it home.
Legally in most states, owners don’t have to buy insurance for a car that is either not intended to be driven for some time or not even in a working condition. They would probably need to fill forms to state that it won’t be driven and it will be kept in a private property. But these things can be done shortly after. Some of these automobiles may even be already declared “not roadworthy” and they may have to go through serious repairs and approvals before owners can register them.
Majority of cars are bought to be driven immediately and therefore this post will try to help the owners who are keen to take their latest vehicle home. In such cases, they would at least need a Liability auto insurance that protects it explicitly or in principle.
Have Insurance: The newly purchased car may be automatically covered for 3 – 4 days if you already have a policy in place for another vehicle. It is important to point out that the current company would only provide the same coverage you have for the one you just bought. In other words, if you have liability only, the latest addition will have this and not have Collision and Comprehensive. Depending on its value this may be a problem. In any case, you have to be extra careful not to dent it from day one.
Most companies offer temporary coverage for a just purchased car automatically. Usually, it would be for only 3 – 4 days until you can make alternative arrangements. But you may have as much as 30 days to sort it out, according to state rules or depending on the policy. So, you should check the grace period for including a new car temporarily on a current plan to know how much time you have got.
Pay Cash: You may need to pay cash if you want to use the existing policy for another vehicle for the time being. If you are getting a loan, it is unlikely that the lender would release the funds until Collision, Comprehensive and GAP protections are in place.
Proof of Insurance: It is probably a good idea to take the current schedule as proof to show if needed. The dealer may not let you take it unless they see this proof. In some states, dealers are required to check proof of insurance before they hand over the keys to owners. It would be disappointing not to be able to drive it after you pay the money.
Even so, you should not rush into it quickly. Be assured that it doesn’t take long to arrange coverage online so that you can drive off the lot. This time is even shorter if you have already done the research and checked all the options. Remember, you don’t have to own the car to get insurance quotes for it. Especially online, all you need is its particulars. Once you complete the paperwork you can consider the options of adding a new car to existing policy or having a separate one for it.
Just remember one thing that the competitiveness of a carrier can change when the type of vehicle is considerably altered. You may not have a problem replacing a sedan with a minivan but going from minivan to coupe can increase premiums with certain insurers while others may not be concerned with it. You know what to do when you get such a surprise; shop around.