Is Coverage Automatic for Newly Acquired Vehicles?

2 minute read

You’re almost done with the strenuous process of buying a new car. You’ve selected your features, your paper work is clear, and you can almost smell that new car scent. Best of all, the dealer says that this new car will automatically be covered under your current auto insurance policy. But is that really the case?

The answer is: maybe. It all depends on your insurer and policy. Some policies will automatically cover your new vehicle under your current terms, but some will only provide this coverage for a limited time. Still, other policies may not cover you at all. The rules can vary even more if your new car is not a replacement for another car you own.

When it comes to automatic coverage for new vehicles, your insurance company will know your liability better than your dealer will – hands down. Before you buy a new car, call your insurance company or AIS representative and clarify their policies for automatic coverage on new vehicles. At the very least, call them after your purchase to notify them of your new car. This also gives you a good chance to purchase additional coverage for your new vehicle, which may only have the same coverage you have for your old car. That way, you can better protect your new investment.

Remember to always ask your insurer to clarify the terms of your policy that you don’t understand. Keep the lines of communication open and you can quickly enjoy owning your new car.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.