Many people either trade in their old automobiles or sell them independently when they buy another one. Most people don’t need, don’t have space or cannot afford two of them. If this is the plan you don’t need to buy a separate policy for the new automobile most of the time, especially when you are replacing it with a similar type. You can just transfer insurance to another automobile you just bought.
Your carrier will calculate the pro rata premiums for both vehicles and let you know if you need to pay more or expect a refund. If both are similar you may not need to pay much to transfer coverage to another car. In some cases, you may even get little refund when the replacement is cheaper. You might want to read this post if you are asking is my new car automatically insured?
They would send you an endorsement that would confirm the change of vehicle on the schedule. You should look out for this confirmation and chase them if you don’t get it in a timely manner.
If you haven’t yet sold the existing auto but planning to do so you can still make it work. Usually, companies are happy to include a just purchased car for 3 – 4 days but they can extend it a bit to allow you to dispose the unwanted. Just talk to them. Actually, in some states the current provider insures a vehicle you just bought for more than few days. So, check the documents.
If you have a multi-car policy you wouldn’t have much of a problem to add this on to it even though you aren’t selling anything. Even if you don’t have it you can still talk to the agent and see if you can keep both on temporarily or until renewal. Most companies would be fine with it and charge you a bit more for the second car. Find out how much does it cost to add a vehicle to insurance?
Is Switching Insurance to Another Vehicle Always the Best Option?
There are circumstances that may require you to look for alternative quotes. For example, if you are exchanging a sedan with a sporty coupe the company may not like it and ask much more money. If that is the case you don’t need to put up with it because you can find a cheaper deal and cancel it as soon as you sell the old car. You will get car insurance refund for the unused portion of the premium paid.
If the cars interchanged are so different from each other a few other things have to be different too. For example, coverage may need to be adjusted to reflect the investment and that will reflect on the cost. There is no harm in exploring different avenues. You should check it but the late car is normally included for 3 – 4 days automatically by the existing policy, even if you still have the car it is written for. That is more than enough time to make the necessary arrangements for it and decide if you will swap, buy a separate plan or ask the carrier cover both cars.
In any case, you should look for alternative quotes at renewal especially if you find your premium is now higher than expected. This may mean that the carrier was okay with the old auto but not much fan of the latest addition. It happens.
Things to Mind when Assigning Insurance to a New Auto
- You will need to answer the same questions you answered before. So, have the title ready.
- Selling isn’t the only option when you want to assign a policy to another car. If you are taking the old vehicle into storage and returning the registration documents to DMV you can use its freed policy for a different car.
- You may be able to persuade the company to keep both on cover for a short time without the need to switch to a multi-car plan, especially when you are trying to flog the other off.
- How long you have before you must notify the company of vehicle swap depends on where you live. However, the early is the better. If you are swapping autos you may have more time to inform them. However, you have only 3 – 4 days if you still own the old one.
- You would pay the premium difference from the day you bought it and not from the day you informed them anyway. So, there isn’t much advantage in keeping quiet about it.
- You can always check to see how much more you may need to pay for insuring the new vehicle with an existing provider. If you don’t like the adjusted price you can always shop around and move without waiting for the renewal date.
- You can have a look at the schedule and see if you need to make any changes to it. In some cases, you may need to revise it and this isn’t usually an issue. For example, you may have liability only for the clunker and you can upgrade it to full coverage if you just bought a nice auto. Obviously you will need to pay the pro-rated premium difference.
- When the switched automobiles are alike you are not likely to get surprises. But when they are a lot different you should inform the insurer as quick as possible and expect higher rates.
- In some cases, the carrier may even refuse to transfer coverage. This can be the case when you just bought a sports car and you have a teenage driver listed on.
- You should know that premiums can increase or decrease as much as twice depending on the auto because risk classes changes. Buying a sports car can put you in high-risk category.
If you have any other question you can search on this site or online. Alternatively, you can check the document, call the agent or drop them e-mail. A standard policy affords much flexibility. But you shouldn’t expect them to be standard in today’s market that offers so many options. It is always safer to check first what is included and what is not.