If I Buy a New Car Will My Insurance Policy Cover It?

The joy of getting a new car in Richardson, TX is like no other. However, owning a vehicle comes with responsibilities, including ensuring your current insurance coverage gets transferred to the new vehicle. The biggest question many new car buyers have is, “Will my insurance cover my new car?” Please continue reading to answer that question and then call us at Allegiance Insurance Agency with any additional questions. 

Is My New Car Covered?

If you get a new car, your existing auto insurance will automatically cover it. However, the coverage you have on the new vehicle depends upon whether the car is a second car or a replacement car. If it is an additional car, you receive the same coverage as the car on your policy with the most coverage. However, if it is a replacement car, you will receive the same coverage as the car it is replacing. 

It is recommended you contact your insurance agency as soon as possible to update your policy to include the new vehicle. 

How Long Is My New Car Covered?

Typically, you have four days to notify your insurance agent about your new car purchase. If you know you plan to purchase a vehicle, it is best to contact your insurance company before you go shopping to verify your policy’s details and ensure your new car is covered. 

I Bought My First Car — Do I Need Coverage Before I Purchase It? 

If you purchase a car and do not have any existing car insurance policies, you must obtain car insurance before buying the vehicle. 

When you buy your new car in Richardson, TX, we will be here to help get you insurance coverage. Call our agents at Allegiance Insurance Agency today for additional information about car insurance and if your new car is covered under your current policy.