Getting a new car can be an exciting time, and it to your auto insurance policy is an important step people can sometimes forget. Whether you’ve purchased a new car or added a second vehicle to your household, your policy must be updated to reflect this big change. Here’s a step by step guide through the process of adding a vehicle to your auto insurance policy.
Step 1: Review Your Current Auto Insurance Policy
Before you add a vehicle, review your current auto policy to get a full understanding of your existing coverage. After review, you may find that adjustments are needed. For instance, look at your current limits and whether you have comprehensive or collision coverage. Consider the type of coverage your new vehicle will require, such as liability, full coverage, or additional protection. This step ensures you’re adequately protected for not just your vehicle, but the new ones as well.
Step 2: Gather the Necessary Vehicle Information
Your insurer will need specific details about your new car before it can be added. Make sure you have the following information before reaching out to your insurance provider:
- Vehicle Identification Number (VIN) – This unique code identifies your vehicle.
- Make, Model, and Year – This helps the insurer determine the car’s value.
- Odometer Reading – Report the current mileage on the vehicle.
- Registration Information – Ensure your car is legally registered in your name.
- Financing information – if you’re financing your vehicle, your lender’s information will need to be listed on your policy.
Having all this information ready will make the process faster and easier.
Step 3: Contact Your Insurance Provider
After gathering the necessary details, contact your insurance provider relatively soon after your purchase. Depending on the state you live in, you have anywhere from 7 to 30 days to make this update. At Cincinnatus Insurance, our clients have access to their carrier’s service center to handle this addition to your policy. Our agency is here to advise clients in the risk and coverage selection process, but we rely on the carrier service center to handle common inquiries and changes. If you’re buying a car on the weekend and want to add it to your policy right away, that’s why we have our clients enrolled in their carrier’s service center.
Step 4: Adjust Your Coverage as Needed
If your vehicle is new or has a high value, full coverage may be necessary. Full coverage includes both comprehensive and collision coverage, protecting you from damage or loss due to accidents, weather, or theft. If the vehicle is older or of lower value, you may only need liability insurance. If you are financing your new vehicle, full coverage will be required and you should consult your lender on any coverage requirements.
The carrier service center should be trained to inquire about available discounts, such as multi-car or safe-driver discounts, to lower your premium. The service center rep will also let you know the updated premium after making this addition. If the new car is more expensive or you’re adding extra coverage, your premium may increase. On the other hand, if you replace an old car or reduce coverage, your premium might decrease. Ensure you know how this addition will effect your billing structure – your monthly payments will change or you may be billed if you already paid in full.
Step 5: Receive Confirmation of the Change
Once your vehicle is added, the carrier will email you updated insurance documents. If you use their online portal or app, this addition will also update there. Review the confirmation carefully to ensure that the correct vehicle and coverage options are listed. It’s essential that all details are accurate before you drive the vehicle. If you are financing your vehicle, you will likely need to send proof of insurance to them.
Step 6: Keep Proof of Insurance in Your Vehicle
Finally, make sure to keep your updated proof of insurance in your vehicle. Most states require drivers to carry proof of insurance when driving. Having it with you ensures you stay compliant with state laws and are protected in case of an accident or traffic stop.
Conclusion
Adding a vehicle to your auto policy is a simple process that every insured must to- this is not something your agency or carrier can do for you. Review your current policy, gather the necessary details for the update, contact your carrier service center, adjust your coverage, and receive confirmation of the changes. By staying on top of your auto insurance, you ensure that your new vehicle is properly covered and you continue to drive with peace of mind.