Auto Insurance FAQ: If I Buy a Car After Hours, Am I Covered?
Most of us who have bought cars have had the experience of whiling away hours at the dealership, waiting for negotiations to conclude and the sale to be processed. Often, this means you find yourself actually closing the deal long after the conclusion of the business day, or driving off the lot on a Saturday afternoon. How do you make sure you have the proper insurance coverage if you buy a car after hours or on the weekend?
Not surprisingly, this is a question we get asked a lot. Here are the top three things we tell our auto insurance clients to bear in mind when you buy a car outside the 9-to-5.
Call Your Insurer Before You Go to Buy
Obviously, you don’t always know when and what time you’re actually going to finalize your new car purchase and drive off the lot. But if you think you might buy a car tonight or this weekend, call your agent during business hours. Your insurer can tell you what kind of coverage you have now, what documents you need for the sale, and any additional coverage you might require.
What questions should you ask your agent before you buy?
Does my carrier give me up to 30 days to notify them that I’ve purchased a vehicle? Most do, but it’s important to make sure you’re covered before you head to the dealership.
Do I already have full coverage?
Am I going to need gap coverage? (If you lease your vehicle and it is stolen or totaled and is worth less than you owe on it, this add-on coverage can help make up the difference.)
If I do need gap coverage, does my insurance carrier offer it? Buying directly from the carrier is usually much cheaper than buying this insurance from a dealership.
Bring Proper Documentation to the Dealership
As we’ve said, most standard carriers allow you up to 30 days to notify us that you have purchased a new vehicle. Typically, if you confirm ahead of time that your carrier allows that, have the appropriate coverage and – most importantly – bring a current ID card with you to the dealer, you should be ready to roll.
Additionally, most carriers do provide self-service options for this type of change if you need to do it on the spot, via a website or app. This is particularly helpful if a seller wants to see proof of insurance for the car you’re buying now. Again, it’s important to be prepared before you go to the dealership: Do you know your insurance app login? Have your policy numbers handy? Have your ID card with you?
Notify Your Insurer ASAP After the Purchase
While many carriers do offer a thirty-day grace period for driving a new car covered by a plan written for an old one, it’s important to get in touch as soon as possible to get the coverage you need. Get in touch as soon as it’s convenient – ideally the next business day.
With just a little bit of foresight, your after-hours car purchase can be completed with a minimum of hassle. (At least on the insurance end of things!) Not sure what insurance you need before your upcoming auto purchase? We can help.
Get in touch to learn how to get the coverage you require for the car you want.