You’ve been patiently searching for the perfect new car. You just signed your name on that last piece of endless paperwork. Now, with keys in hand, it’s finally time to drive off the lot.
But as you take in that new car smell, a thought suddenly crosses your mind: Do I have insurance?
Good news: If you’re an Erie Insurance customer (listed as the named insured), the short answer is usually “yes.” Here are some common questions about how insurance works when buying a new car.
Do I have insurance when I drive my new car off the lot?
When you’re with us, your current auto policy doesn’t just vanish when you trade in your old vehicle. As long as your new vehicle is titled in your name and you are the named insured on the policy, your coverage carries over when you buy a new vehicle of the same type. So, if you already have a car insured with us and you’re buying a car, the coverage rollover applies. But if you’re buying a first-time motorcycle or RV, your auto coverage won’t roll over since you’re buying a different type of vehicle. If you’re buying an additional vehicle (and it is titled in your name), your new car will have the broadest coverage purchased on any vehicle on your policy. If another private passenger vehicle you own isn’t insured with us, coverage does not automatically roll over. For help with this, we always recommend you ask your local agent about what to do in your specific situation. Here’s an example: Let’s say you, your spouse, and your teenage son are all on the same policy. Your spouse’s newer SUV is covered with high limits and multiple endorsements, like Roadside Service Coverage. However, you opted not to get all the bells and whistles on your teenage son’s old high-mileage clunker. When you buy a new car, the broadest coverage – in this example, what’s on your spouse’s SUV – is what will temporarily apply to your new ride.How long do you have to report a new car?
If you’re actively car shopping, it’s smart to talk to your agent ahead of time. If you’re looking at a specific make and model – say, a certain zippy hybrid or a four-wheel-drive pickup – your agent can help you estimate what you’ll pay in premium and suggest ways to save. Remember to report any changes promptly to your local agent. If you forget, don’t stress: You’ve got wiggle room. Don’t wait too long, though, since your agent can help you personalize your policy with coverage that might make sense for your new vehicle but not your old one, like Auto Security. In general, here’s how things work with three common types of coverage:- Liability coverage: Let us know about your new vehicle before the end of your policy period. (While you’re adding your new ride, it’s a great time for a coverage review.) If you buy your new vehicle within 30 days of the end of your policy, you have some wiggle room. Just make sure you report it to us within 60 days after acquisition, purchase, or lease.
- Comprehensive and collision coverage: When these coverages roll over from your existing policy, the lowest deductible applies. If you didn’t have a comprehensive collision on your old car but are purchasing a newer car on lease or loan that will require it, you have a 7-day grace period from the time of acquisition, purchase, or lease where you’re covered with a $500 deductible.
What information do I need to report a new vehicle?
Have this information on hand to report your new car to your insurance agent:- Make, model, and year
- Expected annual mileage
- General usage information (such as how far you drive to work)
- Vehicle identification number (VIN)
- Titling and lienholder information