Buying a new car – it can be one of the most exciting and frustrating experiences all wrapped up into one. But once you find that perfect fit and sign on the dotted line, you might be eager to put all that stress behind you and drive off into the distance in your new ride.
Not so fast, speed racer.
Although a lot of your work is complete, it’s important not to miss a simple, but crucial step that new car buyers forget when wrapping up the car-buying process – updating and transferring your car insurance.
Whether you’re replacing an existing vehicle or purchasing a new car, use the steps below to make sure you and your new ride are fully prepared (and legal) to hit the road.
Step 1: Alert your insurance provider.
So simple, but a crucial step. Unfortunately, there’s a common belief that the dealership will update your insurance agent, but many times that’s not the case. This causes an alarming gap in coverage for you and your new ride. To remove the guesswork, contact your insurance agent to let him know you’ll need to make updates to your auto policy.
To help during the transition, your insurance provider might have a grace period where they’ll cover your new car before it’s officially added to your policy. For example, depending on your level of coverage, Grange Insurance customers will have up to 30 days of coverage to give the purchaser time to work with their independent agent and make updates to their policy.
Pro tip: You can also reach out to your insurance provider ahead of time to start the process before you have the keys to your new car. Give the vehicle identification number (VIN) to your agent ahead of time. That way, you’ll have your coverage set from the moment you leave the dealership.
Updating your insurance to include your new car is important. Not only will you receive your new insurance ID card for your vehicle, but if you’re stopped by the police or get in an accident, your registration will be up to date and you’ll be covered appropriately.
Still need to purchase car insurance? Read our guide on buying the right car insurance for your lifestyle and talk to your local independent agent to start the process.
Step 2: Review your coverage.
While you’re in contact with your insurance agent, take this opportunity to update your auto insurance and make sure it’s still a good fit for your lifestyle.
With your new car purchase, are you also adding on a teen driver or a spouse to your policy? Do you need to increase the level of your coverage or add new coverage options?
Generally, if you’re exchanging an older car for a newer car, you’ll want to make sure all the new bells and whistles are properly covered too. Your independent insurance agent can help guide you so you have the right amount of coverage for your needs.
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Step 3: Verify your changes.
Once the process is complete, make sure you receive your new insurance ID card and properly dispose of your old one.
And, once your auto insurance is updated, you’ll want to double check that all your changes have been documented properly. Take a minute to review your updated policy once you receive it from your agent. Use this guide if you need help understanding your insurance policy or ask your independent agent if you need assistance. That’s one of the many perks of having an insurance expert on your side.
This article is for informational and suggestion purposes only. If the policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. Talk with your independent Grange agent if you have any questions regarding the details of your auto insurance policy or if you need to update your car insurance.
References:
- U.S. News & World Report