Summer is the perfect time to buy a new car. Whether you end up with a sensible van, a luxury sedan, or that sweet classic convertible there are a few things you need to do in order to add that new vehicle on to your insurance, remove an old vehicle, and keep from getting fined by the DMV. Because continuous liability insurance is required on all registered vehicles you need to turn in your license plate(s) before cancelling insurance. If insurance is cancelled before turning the tags in the insured could be subject to fines and penalties.
Sometimes people are of the belief that once they buy a vehicle that the dealership will take care of everything, and a good salesman could very well make you feel that way, and they may very well follow through on their promises of speaking to your insurer and making certain your new vehicle is added to your policy. However, it is never a bad idea to contact your agent to make sure that your policy covers all of the vehicles you own and that their limits, deductibles, and loss payees are correct. The best way to make certain this is done correctly is to take the reigns and call. You will need to provide your agent with the following information: VIN number, make, model, year of vehicle, who will be the assigned driver of that vehicle, what the vehicle will be used for (pleasure use, going to work, etc), and if the purchase of the vehicle was financed your agent will need to know what company financed the purchase and what their mailing address is.
Adding or deleting a vehicle from your policy can cause the premium to rise or fall depending on how many vehicles are on the policy, the uses of the vehicles, the experience of drivers on the policy, and the kind of vehicle being added or deleted. Many companies provide discounts if there is more than one vehicle on the policy or if you also have your homeowners policy with the same company. Once a driver has over 3 years of experience behind the wheel their insurance rating will change and they will become less expensive to insure so long as they do not have many claims or moving violations. It is not uncommon for a new vehicle to increase the premium of a policy even though the newly added vehicle could be considered safer than the old vehicle. It is worth noting that safety is increased by additional technology that goes into these new cars and so a bumper that used to cost $200 may now cost $2,000 due to the sensors and cameras which are becoming more standard in newer vehicles.
Please take the time to read and understand these facts as they may help to clarify the do’s and don’ts of adding or subtracting a vehicle from your policy and always drive safely!