Is a new car covered by full coverage insurance soon as you drive off the lot.?

Question

I got into an accident 4 days later after buying a new car. The dealership was in the process of calling my insurance co. to add full coverage. Will they pay for the damages if I already had full coverage with them on another car?

Answer 1

You will have to look at your policy but you should be covered up to your limits on whatever car you drive...

Answer 2

No, there is NO insurance unless YOU have arranged for it. The dealer is NOT responsible for securing YOUR insurance.

Whether or not you'd be covered on a newly acquired vehicle will depend upon your insurance company and the wording of your existing policy. Most policies I've had in the last 20 years (Geico and USAA) automatically covered new vehicles with full coverage as long as I notified them of the purchase within 30 days. Not all insurance companies operate that way. All of that said, I'd never dream of driving off of the lot without calling the insurance company first and adding the vehicle to the policy.

Answer 3

Every company handles this a little differently. Some companies give you 14 days to call on a newly acquired vehicle and some give you 30 days. Of course, the coverages that you have on your existing vehicle will carry over to the new vehicle for this period of time.

Call your agent to find out. Also, never never never trust a dealership to call. Why would you let someone else make any type of changes to your policy. For one thing they can't!! Take some responsiblity in your life and call yourself whenyou purchase a new vehicle

Answer 4

Assuming you had full coverage through your insurance before you drove it off the lot, as you should have, yes. It's YOUR responsibility to add insurance, not the dealership. No, if you had full coverage on another car, it won't cover anything but the other car, not your new one.

Answer 5

You sould have full coverage on it to begin with. Here in NC you have to have a full coverage if you are making monthly payments on your vehicle. Also, I dont know if you did, when you were talking to the finance people, did they mention to get a GAP insurance. If you got it then what it does(assuming you did) if you totaled your vehicle GAP will pay it off and you don't ow nothing. Hope that helps.

Answer 6

ahhh! i HATE HATE HATE when people say "the dealership called my insurance and added coverage"- THEY CANT EVEN DO THAT- THEY ARENT ON YOUR POLICY!!!

You dont know how many times ive had someone call me after they wrecked they brand new 2007 car.... which they owe 25,000 on... only for me to tell them its not on the policy and they will owe that money even though now there car is a piece of garbage in a tow yard.

call your insurance - NOW!

Now.. to actually answer your question.. it depends on your policy. Usually you have 30 days to change the coverage from one vehicle to another... if this is the case with your policy.. you should be ok. but please please please.. never trust a dealership to change your coverages.

Answer 7

In Canada if your Agent/Broker knows that you are getting a new vehicle and has the serial number of the vehicle and you have talked about coverages you ARE covered for 2 weeks without signing papers.

Good luck

Answer 8

Yes they have to if it was only 4 days old...in most cases you have between 5-14 days to add it depending on the company....but you must have had full coverage on your old car...'


Good Luck

Answer 9

What state are you in? That determines what form of liability is being used. In FL, this would be deemed 50/50 liability on both drivers as both were backing at the same time. His company can't prove he backed out first unless you openly admitted it. Since you can't file through your own company, you'd have to file a claim in small claims court to get the company to agree to pay your damages.

Answer 10

You'll probably be covered but you need to ask your insurance company, not a bunch of strangers on Yahoo.