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Switch car insurance policy

switching car insurance

Switching car insurance

How is the process for switching car insurance to a new vehicle? Most drivers carry auto insurance coverage over from one car to another. Do you need to cancel your existing coverage first, call your auto insurance company or does auto insurance automatically switch to the new vehicle?

Paying too much for car insurance?
Buying a new car certainly means you still need car insurance. So when faced with changing vehicles it’s important to understand how auto insurance works. The last thing you want to do is drive your new car off the dealership lot without sufficient car insurance coverage in place.

Review your Current Coverage
Depending on what kind of vehicle you are buying and the condition of your old one now is the best time to re-evaluate your car insurance policy and understand how much coverage you have. It’s not uncommon for drivers to find a lack of car insurance they thought they had (but actually never) when its time to buy a new car. You need to consider is the liability, collision and comprehensive car insurance coverage sufficient for the new vehicle and your current needs.

Supplemental Gap Insurance
It’s also a wise idea to inquire about supplemental car insurance such as GAP insurance to make sure there is adequate protection to cover any deficiency of your car loan balance in the event of a total loss accident. Whenever you buy a new car you should treat this time as an opportunity to learn about car insurance. Consider comparing auto insurance quotes in the marketplace.

Switching insurance agents

Yes. There are several reasons you should switch your insurance agent. First, you need to understand the cost of car insurance. Any change in a vehicle will also come with a change in premiums, so it’s important to know the full financial responsibility associated with a new car before committing to a car loan.

Inquire about the process for changing insurance plans
Secondly, you need to inquire about the process of changing insurance plan for your new vehicle. While most auto insurance holders can make the change online or over the phone, it’s important to know:

  • When the (a) effective date of the change is
  • And (b) how any difference in the premiums will be billed or refunded to you.

Confirm in writing, not verbal

Many states have a time period where your existing auto insurance automatically extends to the new vehicle for 15 or 30 days (giving you ample time to contact your car insurance company and formally make the change). However, this is not a mandatory policy so never assume you have coverage in place when switching vehicles. Always speak to your company and confirm (in writing) any changes to your policy which reflect the new car. If you are buying a car on a weekend then its critical to speak to your agent.  Many companies do not have weekend hours of operation.

Inquire about Current Discounts

Have you got married since you last applied for auto insurance? Do you have multiple vehicles with the same company? Are you accident free for three years or more? Always inquire about what car insurance discounts are applied to your current policy and go over the list of one’s available. You may be eligible for many more discounts that were unavailable at the time you originated the initial policy.

Brush up on your knowledge of car insurance
Switching car insurance between vehicles is not difficult, but if you don’t stay in touch with your agent or learn about your car insurance company’s procedures, then you may find yourself without car insurance. Most drivers never have any problem with changing benefits mid year. This is also a good time to brush up on your knowledge of car insurance. Ever compare quotes from different providers.