Do I Have Insurance When I Drive My New Car Off the Lot?

Congratulations, you purchased a new vehicle over the weekend!  But, do you have auto insurance coverage over the weekend until The Insurance Center opens on Monday morning?

Yes. Most insurance companies provide automatic coverage for new vehicle purchases equal to the broadest coverage on your current or other vehicles. In other words, if you already have an auto insurance policy in effect and you purchase a new vehicle, that policy will cover your new purchase for up to 4 days.

 Things to Consider: If you do not have comprehensive or collision coverage on the vehicle you are replacing, you will not have this coverage on your new vehicle. The automatic coverage is only the same as the coverage you had before.

If you have multiple cars listed on your policy, your new vehicle will automatically have the greatest level of coverage of any car listed on the policy.

If you are purchasing a vehicle and you don’t have insurance yet, you will need to get insurance well in advance of driving the car off the lot. Remember, auto insurance is required in North Carolina.

 Will the dealership notify my insurance company when I buy a new car?

No, it is your responsibility to notify your insurance agent. Do not rely on the dealership to do this for you, even if they say they will!  Call your agent promptly and provide the vehicle year, make, model and VIN plus and lender or leasing company information.

 How much time do I have to add a new car to my existing car insurance policy?

Typically, you have 4 days to notify your agent of your new vehicle purchase. This is not true of all insurance companies so be sure to contact your agent to be certain that coverage is in place.