If you decide to buy a new car in Laurel, Maryland, you will also have to buy auto insurance. If you already have an existing auto insurance policy, you are usually covered under that policy for a short period of time so you can make arrangements to add the new car to your policy.
The grace period can vary from one insurer to the next, but generally, you are covered from 14 days to one month before you must have a new policy for the car you just purchased. It is always a good idea to check with your current provider to find out how such situations are handled so you do not run into any problems after you take possession of the vehicle.
If you decide to go to a dealership in Washington (District of Columbia) and trade in your old car, you will have the same coverage on the new car as you had on the old car. If you had a car that was only worth $1,000 and only had liability on that car, then you will only have liability coverage on the new car you need to insure.
If you finance your new car, the lender will almost certainly require that you carry collision and comprehensive insurance as well as the state-mandated liability coverage. It is therefore very important to contact your insurance company and add the extra coverage as soon as possible.
Although you may not legally be required to contact your auto insurance company for two weeks or 30 days, you should not wait that long. If you inform them that you just purchased a new car, they can make the necessary changes right away and you will avoid any questions about whether or not you are covered.
As your independent agent, it is our job to help you in such situations. If you are buying a new car and are concerned about making sure that there will be no lapse in your coverage, give us a call and an independent agent will take care of the paperwork.