Car Insurance Coverage For Used Car
Reader’s Question:
I will buy a used car. If I drive it back home, will my car insurance cover it? Do I have to tell the car insurance agent? How soon should I inform them?
Bianca
Chicago IL
It is best to get car insurance set up on the vehicle you are planning to purchase before you take ownership of it. If you don’t have car insurance policy then you wouldnt have coverage on that car. If you were purchasing the vehicle with a loan it is possible that the lien would require you to have auto insurance set up before you take the car.
If you have a vehicle and auto insurance then it is possible that you may be afforded insurance. Keep in mind though that every state has different laws governing this as well as the car insurance companies’ guidelines differ as well.
Typically auto insurance providers will transfer coverage of current car to the “new” vehicle for up anywhere from a few day up to thirty days. Again, the amount of time will still depend on the car insurance carrier.
Once common mistake is that when someone has coverage only on a car and then they buy a vehicle that needs full coverage (leased car) and they are not covered. Keep in mind that the coverage transferred is typically limited to the amount of coverage on the old car.
If you do not let the car insurer know or not within the days permits by the law for a certain amount of time then the new vehicle would not be covered.