How Insurance Works

Is a new vehicle automatically covered on your auto insurance policy? | Huff Insurance


hi this is Jerry Nicklow with Huff Insurance and I have a question that we hear quite often. Does your auto
insurance automatically cover a newly purchased vehicle? You want to go buy a
new car on a nice Saturday morning so you head off to the local dealership
find that perfect car agree to a great price and then sit down and get through
the paperwork at that time the dealer ask you if you have auto insurance your
answer is going to be yes so the next question is does that auto insurance
cover that newly purchased vehicle and the answer is maybe so why is it maybe
the standard ISO auto insurance policy will provide insurance coverage for
newly acquired cars only if all your own vehicles on that auto insurance policy
what does that mean if you have car one covered with company a and car to cover
of a company B you will not have automatic coverage on that newly
acquired automobile because the company does not insure all your vehicles this
is one major problem with not inserting all your cars under one policy so if you
buy that car provide your insurance information for company a to the dealer
and drive off the lot you do not have coverage on that car so if you pull out
of the lot and get into an accident company a can deny that claim now let’s
assume you do have all your cars insured with one company and that company uses
the ISO insurance policy language then you go out to buy that same car in
a Saturday what coverage will you have for that new car for liability insurance
there are two scenarios if its replacement vehicle liability insurance
automatically transfers to that new vehicle without having to notify the
insurance company although the policy wording states you don’t have to notify
the company we still recommend that you do make that call as soon as you can
scenario two if it’s an additional vehicle to the policy the policy states
that if you notify the company within 14 days that you will have liability
insurance for that car for physical damage coverage that’s comprehensive and
collision there are also two scenarios in this case if you currently have
physical damage coverage on your policy the policy will provide the broadest
coverage of any vehicle on that policy for that newly acquired car so you will
if you notify the company within 14 days of purchases that car if you do not have
physical damage coverage on that vehicle the policy language states
that if you notify the company within four days you will have a $500
comprehensive and a $500 collision deductible for that newly purchased
vehicle so those are the answer that’s why it’s maybe we also hear cases where
the salesperson at the dealership says hey don’t call your insurance company
we’ll take care of that that’s not a good idea to let them do that for a
couple of reasons what the first reason is sometimes they forget if they forget
the call and it takes in more than two weeks to call the company or call the
agent then that automatic coverage isn’t there so that can create a problem for
you salespeople are good people they’re not
intentionally not trying to do this for you things happen they get busy so
second even if that person does make that call to add that vehicle they
really don’t have the legal right to change your policy the contract is
between you and your insurance company so you as a named insured are only
allowed to be the one to make the changes to the policy buying a new car
is an experience and we can help make that experience a little smoother but
making sure you have the right auto insurance in place at the time you make
your purchase if you know you’d be buying a car soon just give us a call to
go over your coverage and go over the steps needed in order to assure the auto
insurance policy will cover your new car The last thing you want to happen is to not
be able to drive your new car home because there’s a glitch in the
insurance verification process did you know that it at Huff Insurance
you can have 24/7 access the insurance information through our customer portal
with this portal you can access your auto ID cards and verify your insurance
at any time for details go to www.myhuffportal.com


Leave a Reply

Your email address will not be published. Required fields are marked *