Buying a new car in Newark, NJ can bring some questions about what to do with your auto insurance.
If you are buying a car on the weekend and the insurance office doesn’t open until Monday morning, you will usually have automatic coverage for new purchases that is equal to the broadest coverage you have on either your current or other cars on the policy. This means your policy will cover you for up to four days. If you don’t have comprehensive or collision coverage on the car you are replacing, then you won’t have it on the new vehicle. You may be required to have this overage if you are leasing or financing the new car. If there are multiple cars on the policy, then the new vehicle will have the greatest level of coverage to match any car listed on the policy.
It’s important to read the fine print on the lease or loan. Some leasing contracts could have a forced place clause, which means that the leasing company will arrange for insurance and add it to the monthly bill. You may also want to add additional gap coverage when purchasing a new car since this will help pay the difference from what you owe and what the car is worth at the time of an accident.
The dealership will not be responsible for contacting your insurance company, so you should contact your insurance agent as soon as possible.
If you are purchasing your first car and don’t have any existing insurance, you will have to do that before you can drive off the lot. An agent at E.S.T.I.R. Inc. can help you set up a first-time car insurance policy. While you typically have four days to contact your insurance after buying a vehicle, you should notify your agent in advance if you know you are close to getting a new car.
Contact E.S.T.I.R. Inc. serving Newark, NJ, to get a quote on auto insurance.