clock October 27, 2015 comments No Comments flowchart Our Blog tag Liability

One common question that we are frequently asked is, “If I Purchase a Vehicle Over the Weekend is it Covered Under My Personal Auto Policy?” Watch as insurance experts Rosalynn Davila and Brenda Loiselle-DuClos explain what insurance policies cover in regards to purchasing a new vehicle.

If I Purchase a Vehicle Over the Weekend is it Covered Under My Personal Auto Policy?
Although it varies depending on the company, most companies offer coverage between 7 to 14 days, allowing you some time to notify them of your new vehicle.

What is considered a newly acquired vehicle?
A newly acquired vehicle is defined as:
a) An automobile, pick-up truck or van.
b) A Vehicle which is not being used for business purposes, which would include deliveries or taxiing people around.
c) The vehicle must weigh under 10,000lbs in Gross Vehicle Weight

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So if I purchase the vehicle, do I automatically have comprehensive and collision coverage?
Your policy usually provides automatic insurance coverage for your new car at the broadest level that any of your current vehicles have.
For example, if you already have a vehicle on your policy with comprehensive and collision coverage, then your newly acquired vehicle should automatically have comprehensive and collision coverage. Similarly, if you only have liability on your current policy, your new car will only be covered for liability coverage.

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What if the dealership tries to sell me insurance while I am there?
You don’t need to purchase an insurance policy that a dealer tries to sell you. Many dealerships now offer insurance and sometimes people purchase it out of fear of not being insured over the weekend. Most of the time, this leaves people with two separate insurance policies for the same vehicle.

If you are thinking of purchasing a new car, give us a call and we can direct you on the best way to make sure you are covered the moment you drive your car away from the dealership.

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