Can i start insurance on a new car with a new insurance provider before the current policy runs out ?
asked:
My current car insurance policy runs out at the end of the month and I will not be renewing with them. I am getting a new car approx 2 weeks before the expiry date. Can i start the insurance with another company and ‘overlap’ the insurance ?
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My current car insurance policy runs out at the end of the month and I will not be renewing with them. I am getting a new car approx 2 weeks before the expiry date. Can i start the insurance with another company and ‘overlap’ the insurance ?
http://www.fresh-coffee.com
September 13th, 2009 at 2:30 am
You CAN do that since you are changing anyway.
You might want to notify your PRIOR insurance company once you have the NEW coverage in force - just to avoid any duplication of coverage and any “earned premium.” If the company automatically renews and you don’t inform them, they might try to collect for the time you had coverage in force.
Just show them a copy of your NEW policy and they will cancel the old.
That’s the way it SHOULD be done. Try this site to find the best car insurance
Here you can get quotes from different car insurance companies in your area, its the best way to find an affordable car insurance with a reliable company.
Good luck, drive RESPONSIBLY and I hope this helps!
September 15th, 2009 at 11:26 pm
Yes. As you will be insuring a totally new car. If you were to register the new car with the current policy, you would pay your normal amount and they will end up renewing your policy at the end of the insurance term, probably with a whole new dollar amount.
Your best bet is to check with the insurance compant itself, as there are different rules in different states.
Enjoy your new car!
September 16th, 2009 at 6:02 pm
Yes you can. But as soon as the new policy is active, I would cancel the old policy. Then you’ll get a small refund.
September 18th, 2009 at 11:07 pm
Absolutely. Your old insurance won’t cover your new car. It’s for the old car. What is most vital for you is to have your new car covered with a legally mandated insurance policy and one that meets your needs from the minute you start driving the new vehicle. And don’t rely on the dealer to take care of it for you. Car sales are rather complicated and insurance is one thing they either frequently miss or don’t cover in the transaction
If you should have an accident with the new car and insurance hasn’t kicked in yet you lose the entire value of the car plus have no protection for any damage compensation for injuries or property damage to the other parties involved in the wreck.
But even if those bad thing don’t happen you could still risk hundreds of dollars in fines from the DMV for the time your car isn’t actually insured. That it will be counts only from the day the insurance becomes effective.
And when you relinquish your old car make sure you properly dispose of the title and tags and then when that’s done cancel your insurance with that company. But again make sure to cancel your registration of that vehicle with DMV and legally dispose of your title and tags
Addendum:
Karma of the Poodle gives excellent advice about getting gap insurance but as per my advice above don’t assume the dealer is going to get it for you. You’ll need to ask for it. And then follow up to make sure it is done. I’ve known several people who thought the dealer would take care of the insurance for the gap period but then didn’t. And those several people ended up having to pay fines around $150 each to the DMV for non-complicance with the mandatory insurance laws
September 21st, 2009 at 12:39 am
The procedure is, when changing insurance carriers, you need to write with the new carrier first then contact your current carrier to request to cancel the effective date of the new policy. This way you do not have a lapse in coverage nor pay any other fees to your old insurance carrier. Also, you have the right to request a copy of your request to cancel and proof of cancellation of your old policy. I tell my clients this for a reason. There are certain companies or agents that may let the policy lapse and then want to bill you for the “non renewal” since most 6 month policies auto renew. This way you have proof of the request of cancellation in-case they want to try to bill you or state they never received a request to cancel.
Also, I hope you purchased gap insurance with your new vehicle. You can purchase it with your dealer or with your insurance agent in most cases. This protects you in-case the car is totaled before the car is paid off. For example : You owe $10,000 on the car, you have a wreck and the car is totaled, the insurance only wants to pay you what the car is currently worth on the market -$5000 - and total loss the vehicle. You are still stuck with the extra $5000 owed. Gap insurance covers that leftover amount. Make sure you get it asap.
Congrats on the new car, too!
September 23rd, 2009 at 1:40 pm
Yes you can, and you also have the right to cancel your old insurance effective the date of the new and they will issue you a pro-rated refund.
If you still shopping for insurance I would recommend using a site like to compare rates.
September 25th, 2009 at 11:11 am
yes you can, try this site
here you can get quotes from different companies so you can find the best option for you.