A big worry among many car buyers is that brief period when their vehicle is not covered under any insurance. This could potentially happen if you’ve purchased a second or third car or if you’ve just completed a vehicle trade. In the event that something does happen, being caught without insurance could expose you to financial liabilities, in addition to leaving you on the hook for any vehicle repairs.
In many cases, your insurance policy may automatically provide coverage if you purchase an additional vehicle or replace an existing vehicle. Such automatic insurance is meant to be temporary, giving you time to arrange for proper insurance with the best available options.
Any vehicle you’ve purchased will automatically receive the same insurance as the vehicle with the broadest insurance on your current policy. That means if your first car has liability insurance while your second car has liability, collision and comprehensive, any additional vehicle you purchase will automatically be covered the same as the second car, since it’s the broadest insurance available.
Meanwhile, any replacement vehicle you purchase will have the same coverage as the vehicle it replaces. For instance, if you use an older vehicle that’s covered only with liability insurance as a trade-in, the new car will automatically have liability insurance.
Most auto insurance providers require that you notify them as soon as you have purchased an additional car or if you replaced an existing vehicle, usually within a specific number of days. It’s a good idea to get in touch with us to speak to an independent agent, who can then help you secure the best available insurance for your unique motoring needs.