We hope you and your family had a wonderful Thanksgiving. Hard to believe the year is almost over.
Have you ever thought of buying a new car before the end of the year? Sometimes (from what I've heard), car dealers make better deals this time of year. Have you ever wondered how long you have to add your new car to your auto policy?
Most insurance companies offer coverage for your new car for up to 30 days, automatically. However, if you do not have comp and collision on your current car, that means you would not have comp and collision on your new car either, until you add your new car to your policy. Some other insurance companies only provide a 15-day window, so it is best not to wait until the last day to add your new car to your policy.
Another item to keep in mind is gap coverage or new car replacement. Gap coverage is designed to cover the difference between what the vehicle is currently worth and the amount you owe on it, in the event of a total loss. Most car dealers offer gap coverage as a part of their loans or leases. In our experience, if it is less than $100/year, then that is a pretty good deal. Plus, some vehicle manufactures automatically include gap coverage. Double check the contract before you sign.
Additionally, new car replacement would apply in the event of a total loss. The insurance company would typically pay up to 120% of the value of the car you just totaled in order to purchase a brand new one of the same make and model.
Both of these coverage items usually drop off your auto policy after 2-3 years. By that time, most vehicles have depreciated beyond what is owed on the loan, which is why the coverage is no longer available/applicable.
We hope you enjoy the holiday season and end up with a shiny new car with a large red bow in your driveway this holiday season.
