Now that you are aware of your options for insuring a new car, let’s take a look at the steps to guarantee that it is properly insured when using the grace period.
Step 1: Check how long your old insurance will cover your new car
As mentioned, buying a new car and the insurance grace period will vary depending on your policy. The first step in getting your new ride properly insured is checking how long you have to complete the process.
Once you are aware of the timeline, you can begin checking out policy and types of car insurance.
Note: If you are leasing a car and your previous policy did not include comprehensive and collision coverage, you will not be covered by the grace period and must purchase this extra coverage first.
Step 2. Check what’s covered under your old policy
Since you are purchasing a new car, you might want to consider whether your current policy is sufficient for your new vehicle. Most policies allow you to either replace your old car (if you are selling it) or add your new car as an additional insured vehicle quickly and easily. However, in both of these cases, you will typically be getting the same coverage as your initial policy.
Step 3: Verify whether you want to continue with your old car’s policy
Even if your old policy seems good, it is always a good idea to take a quick look at the market to see if you can get a better deal.
The verification process can be completed in a few easy steps:
- Enter your zip code below
- Select your current insurance provider
- Enter the new car’s make, model, and year
- Answer some quick questions about yourself
- Compare coverage across providers instantly
You also have the option of speaking to a dedicated insurance professional that can guide you through the process. They will be happy to give you a call to help you get the best rate and coverage possible.
Step 4: Add Your Car or Purchase a New Policy
If you have verified that your current policy offers you the best coverage and rate combination, go ahead and call up your provider or visit your online account to get your new car added to your policy.
Remember to remove your old vehicle from the policy if it no longer requires insurance.
Tip: Most auto insurance providers want to avoid losing customers at all costs. If you find a better car insurance quote through Autoinsurance.com, call up your insurance carrier and see if they will match or beat that offer. You might end up getting an even better deal and avoid expensive car insurance.
Step 5. Start paying for your policy
Now that you have the best possible coverage for your new car, all you need to do is make those monthly payments and enjoy your new car.
Tips for Avoiding Problems when Insuring a New Car
Buying a new car is exciting. To avoid any issues with your temporary car insurance coverage, reference the following quick insurance tips for insuring a new vehicle.
Tip 1: Never Lapse on an Insurance Payment
Remember that if you miss auto insurance payments, your coverage will be lost. In this case, you will be required to pay a lapse penalty.
To be safe, set up a direct deposit or automatic transaction for bill pay.
While some states require auto insurers to provide a grace period for missed payments, others do not. Driving uninsured can result in huge fines and a major lawsuit if you were to get in an accident. Be safe and prioritize insurance payments over other bills.
Tip 2: Add Comprehensive and Collision Coverage
While most states only require liability coverage to drive a car, dealerships have their own individual requirements.
You will be ineligible for a car lease without comprehensive and collision coverage, so adding these extras to your current policy will put you in a great position if you decide to upgrade in the near future.
Tip 3: Add Your Car Before You Finalize the Deal
Most insurance providers will be relatively flexible when adding your new car to your insurance policy. If you can, it is always a better idea to finalize coverage for your new vehicle prior to making the final purchase.
Plus, getting the process completed early will shed light on your financial obligations before you agree to terms:
- It will allow you to project your monthly insurance payment
- It gives you a better idea about how much your new car is actually going to cost you
If the deal were to fall through, your insurance provider will have no problem canceling the added car.
Tip 4: Do Your Homework Before Selecting a Provider
Comparing car insurance company rates online through Autoinsurance.com is the best way to ensure that you are getting a great deal on car insurance. By comparing insurance company rates and coverage levels across providers, you can make certain that you are fully covered when you need it most. Before you choose your car insurance, see our guide on how to lower car insurance rates.