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Did you just buy a car???


Ready and waiting for action!

One of the most common discussions we have with clients is about adding a vehicle to their auto policy. Think about it. How many car dealers are there in town? And used car dealers. And private sales. Cars are changing hands all day, every day. You can even buy one online. I saw a sticker on the back of a car the other day that said Amazon Auto Sales. Another of our clients found a vehicle in San Diego that he wanted, and is having it shipped here.

The question becomes, is my car covered? When? How? Do I need to inform the insurance agency when I do it? Do I have to do that first? But I don’t own it yet.

Fortunately, most – but NOT all – insurance policies accommodate for that situation. Rules vary by state and carrier, but in many cases, you are covered at least to some extent when you drive your new possession off the lot. You need to be careful though.

Since we are in Texas, I’ll speak to that. If you are not in Texas (and aren’t planning to move here –HAHA) these are general principles and you should talk to your agent or carrier. Another good reason to keep your business with an independent insurance agent. By the way, it goes without saying that these comments apply only if you have an auto insurance policy in force now.


IF YOU ARE BUYING AN ADDITIONAL VEHICLE

• Doesn’t matter if it is brand new or used. Rules are the same.

• Showing your current and valid ID card will suffice as proof of coverage, even though the new vehicle is not on it.

• You will likely have coverage as soon as you drive it away.

• The coverage could be for the broadest coverage you have on any vehicle. So, if you have liability, uninsured motorist, comp, collision on one vehicle, it applies to the new one.

• But, if you don’t have comp and collision on any vehicle, you won’t on the new one either

• There is a time limit on how long this assumed coverage lasts. Varies greatly. One of our carriers offers this for 30 days.

• But that means you must call the agency to report the vehicle within 30 days.

• You can also email or sent a message through our website. That way you can do it as soon as you get home, so you don’t forget.


IF YOU ARE REPLACING A CURRENT VEHICLE WITH ANOTHER ONE

• Doesn’t matter if it is brand new or used. Rules are the same.

• Showing your current and valid ID card will suffice as proof of coverage, even though the new vehicle is not on it.

• You will likely have coverage as soon as you drive it away.

• This is where it is different. – Coverage for the newly acquired vehicle will be the same as for the one that is replaced.

• EXCEPT COLLISION COVERAGE, which is only offered for a specific period of time. Some policies only allow 4 days. Others might be more generous. But you must contact the agency to make that collision coverage permanent. Do not delay.

• Email or message the agency (our website offers this convenient feature) as soon as you can, so you don’t forget


HAPPY MOTORING!!!


DISCLAIMER! Yes, there is always one of these. These statements do not imply coverage, are general guidelines, and your specific policy rules. There are some policies that do NOT offer this extended coverage. They are called named vehicles policies. If you have that, you must contact the carrier to establish coverage for your vehicle.


© 2019 Ruzicka Insurance Services, Inc.

130 Industrial Blvd Suite 170

Sugar Land, TX 77478

Office 281-565-7550

Fax 832-201-9303

info@brinsure.com

Descriptions on this site are for convenience and general description only. Please refer to your policy for specific terms, conditions and coverages.

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