I just bought a car and I need to add it to my insurance NOW….right? That’s what the salesperson told me.

July 21, 2016

You just purchased a car from the dealership and the salesperson is telling you that you need to add the car to your insurance or they won’t let you drive it off the lot. While this may be a good policy for the dealership to have, it’s not always entirely necessary. When you need to add the vehicle can vary depending on your insurance policy and current coverages.

If you currently have full coverage, including comprehensive and collision, on at least one vehicle then this coverage should extend to your new auto. There is a limit on how many days this coverage extends, so be sure to check your policy and get the car added before that time. If none of your vehicles have comprehensive or collision, and you are buying a vehicle that needs those coverages, you usually need to add the vehicle within 4 days.  If you don’t have any auto insurance coverage, then you need to get a policy set up and ready to go for when you do purchase a car. Without any current coverage, there is no coverage that will extend to your new vehicle.

Obviously you want your new car to have coverage, so it is always best to add it as soon as possible. The dealership might not be the best time or place to get that taken care of, which is why most insurance policies give you time to add or replace a vehicle on your policy. This time generally ranges from 4 days to 14 days depending on the policy and current limits. Check with your policy or agent to verify when you need to add a new vehicle.



Disclaimer: Not all insurance policies are the same. Coverages and exclusions may vary and all statements made here are based of off normal auto and home policies. Please always follow the law.