When shopping for a new car, you might hear that “automatic coverage” applies to new vehicle purchases. While not a complete “urban legend”, it can be a (expensive) killjoy if misunderstood…and something happens.
The perception of “automatic coverage” actually refers to a 30 day temporary extension of your existing auto coverage to a newly acquired vehicle. Most auto insurance policies include this – but restrictions may apply.
Things To Know
- Notification Period: Notify your agent or insurance carrier as soon as possible to make sure the new vehicle is added to your policy. Most auto policies allow up to 30 days from purchase. If your notification is over 30 days from purchase, coverage will not extend automatically. Abernathy Insurance Agency recommends immediate contact to confirm coverage.
- Replacement or Addition: What is covered during the initial 30 days might vary depending on whether the new car is a replacement or an addition.
- Physical Damage: Your new car is not covered for physical damage (comprehensive and collision) if you do not have existing coverage for physical damage.
- Name on Title/Registration: Coverage will not extend automatically if the title or registration is not solely in your name or that of a spouse or a relative currently on the policy.
- Single Household, Multiple Insurers: Coverage may not extend automatically if you and your spouse are insured by different companies, unless the new car is a replacement vehicle.
- Commercial Use: Coverage will not extend automatically if the new vehicle is for commercial use.
- Your Safest Bet: Contact your agent ahead of time for more information.
Accidents happen. And, accidents sometimes happen driving from the car lot! Having the right coverage can make a big difference to your peace of mind – and your pocketbook. Enjoy the excitement of your new car with fewer worries. Call us today, and be prepared before you buy! (626) 574-1000.