Obviously, if this is the first car purchased and the owner doesn’t already have car insurance, that motorist will need to be insured before he can drive the car off the lot. In another case, if the driver is financing the vehicle, his lender will likely require him to have coverage at the time of the purchase to be able to provide financial help. Most new drivers are immediately recommended to obtain car insurance soon after the register their car or even as they finishing applying for a driver’s license.
If you have car insurance and you’re replacing your car with a brand new automobile, you typically have 15 to 30 days to notify your company of the new purchase. Your rate will then be adjusted based on the new vehicle’s make, model and year. Most companies do not make changes unless the model of the car is completely different from the previous car. It is also important to make sure you inform your company about the new car within the appropriate window, or your coverage could be withheld and you could be driving without any coverage.
In adding a new car to your coverage, rules vary for each company. Some car insurers provide automatic coverage for the additional car, but you must still notify them within the 30 days. Other car insurers, however, provide no automatic coverage for additional cars and you may have to purchase a different coverage for your new car. There are also some companies that offer a lower premium if you place 2 or more cars under the same coverage. In this case, both cars should be placed under coverage at the same time and not one after the other.
You can purchase new car insurance for a brand new car if you find that the coverage offered is cheaper or easier than your previous coverage. However, changing cars does not automatically mean that your previous coverage on your previous car will stop. Make sure that you notify your insurer of the changes that you make, both of a new car and a new coverage with a different company. If not, you may find yourself paying for two coverage plans, one for a car you no longer own. It is advisable to use the same company that insures your current vehicle with your new one. This makes it less confusing, both for you and your insurance company. Ask for quotes and research their coverage plan in order to get a discount or a cheaper premium.
