Changing the insurance on a new car, whether transferring the existing policy from your trade-in, adding a new car or making changes to the policy is a fairly easy endeavor. Insurance laws vary from state-to-state, but generally you are free to change insurance companies and policy details at any time. Especially when buying a new car, changing around your policy or switching providers may save money and get you the protection you need.
Call your insurance company and get a quote for the new car, then call several others to compare rates for the same coverage.
Decide on the coverage and company and ask what type of documentation you'll need. Most auto dealers and banks will work directly with the insurance company to push the deal through quicker.
Obtain an insurance binder from the insurance company, as you'll often need one before the auto loan is finalized or the vehicle is registered. The insurance binder is a document that tells whomever needs to know that you are insured.
- The timing and procedures for obtaining an insurance binder and active policy in your area may vary, but as long as all interested parties (bank and dealer) are in contact, you should be in great shape. The insurance company will fax, email or mail an insurance binder to whomever you request.
- If your insurance company gives you a hard time about switching providers or making changes, contact your state's attorney general or insurance commissioner.
Matt McKay began his writing career in 1999, writing training programs and articles for a national corporation. His work has appeared in various online publications and materials for private companies. McKay has experience in entrepreneurship, corporate training, human resources, technology and the music business.