How Long Do I Have to Notify My Insurance Company After I Purchase A Vehicle?
Dealing on a new vehicle can be a nightmare. From the time searching online listings, traveling to different car lots, and negotiating a price it can take away a lot of the the joy from what should be a joyous time. With all the stress during these hectic times, one thing you don't want to do is forget to notify your independent insurance agent that you purchased a vehicle or fail to notify them soon enough to maintain proper coverage.
Our agency regularly gets calls from people purchasing new vehicles and 99% of the time our clients notify us in the correct amount of time. We are proud that our clients do notify our agency in the proper time frame, most of them still make a statement along these lines, "I just purchased another vehicle, and I I know I need to let you know, but I'm not really sure when I have to let you know by."
Honestly, this isn't a straightforward answer of when you need to let your insurance agent know that you have purchased a new vehicle and there are several factors. I always recommend letting your agent know as soon as possible. I've broken down a few basic time frames in this video of when you should notify your agent.
If you have liability only on your existing car and you purchase an additional vehicle or trade your vehicle with liability coverage in on a new car that you want comp and collision on you should notify your agent within 4 days.
Essentially when you want to change from liability only to physical damage coverage.
If you have comp and collision on your current policy and you want to have comp and collision on your new vehicle as well, you generally have 14 days to notify your insurance agent.
When you want to maintain your current physical damage coverage on a new purchase.
If you have liability only on your vehicle and you purchase an additional vehicle that you want liability only on, you may have up to 30 days to notify your agent.
When you just want liability only on your additional vehicle.
DO NOT DRIVE OFF THE LOT if you do not have an auto insurance policy. If you have no prior coverage you will not have liability or physical damage coverage.
After purchasing a vehicle you it is a great time to review coverages with your independent agent. You may consider increasing liability limits, adding comprehensive & collision coverage, roadside assistance, GAP coverage, or new car replacement.
Please remember that each carrier may have different obligations when it comes to reporting a new vehicle. Some require notification as outlined above, other may be more or less time. You can contact our agency at 815-244-1570 after your next vehicle purchase.