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When Do I Need to Notify My Insurance Company of a New Car Purchase in Texas?

By Reata Insurance Group Car Insurance Comments Off on When Do I Need to Notify My Insurance Company of a New Car Purchase in Texas?

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The process of searching for a new car can be stressful at times. You may spend hours going through listings online. You may face obstacles traveling to different car dealerships and trying to negotiate a fair price. While these are stressful situations, you must stay focused. When you lose focus, you can overlook the basics. However, one thing that you should not forget while searching for a new car is to contact your insurance company and let them know about the purchase. Failure to notify your insurance company about the purchase can cause you to lose full car insurance coverage.

Here is a look at the time frame within which you need to notify your insurance company about the new car purchased.

What Is New Car Insurance Grace Period?

In Texas, the new car insurance grace period is generally within 2 to 30 days. This implies that any insured driver can drive a newly purchased car for 2 to 30 days before adding it to their existing car insurance policy. However, each company handles this differently, and the type of coverage your call will have can vary as well. If you do not have an existing policy, you will be required to present proof of minimum liability coverage before you can drive your new car on Texas roads.

How to Calculate the New Car Insurance Grace Period When

  • You Are an Existing Policy Holder

There are no state laws governing the period within which you can switch your existing car insurance to a new one. Therefore, the time within which you can notify your insurance company of your car purchase will also range from 2 to 30 days. Each insurance provider can set its own grace period, so make sure to contact your insurance agentto learn more about your coverage needs and the relevant grace period. It is also important to find out what coverage is, and is not, automatic on a new purchase.

  • You Are Replacing an Existing Car

Most insurance providers will allow you a grace period of 7 to 30 days if you are replacing your existing covered car for a new car. The new coverage will be the same as the one you are replacing in terms of type and amount.

  • You Are Purchasing Your First Car

If you never had a car before and are buying your first one, you must have at least the minimum liability coverage to be able to take it out on the roads. Make sure to call your insurer and enroll in a policy first, even if you are purchasing your new car from a private seller.

Other Things to Consider

Do not attempt to drive your new car without car insurance. Remember that you will not be allowed to add anything if you do not already have existing coverage. If you have multiple vehicles listed on your policy, your new vehicle will match the highest level of coverage for any vehicle on your policy.

Your insurance company will help you figure out the types of coverage that you need in your policy. Inform your insurance company about the year of purchase of the new vehicle, the make, model, and VIN. Once the insurance company has the information they need, they can inform you if you need to increase your liability limits, add extra coverage, or add GAP coverage. If you add GAP insurance, the policy is structured differently if you are financing a vehicle. If you are financing a vehicle, the loan coverage will handle the difference between the amount you owe on the vehicle and the value of your car if it is totaled. GAP insurance helps make sure that your vehicle is protected regardless of the situation and may be available.

Your insurance company can also help you decide if it is a good idea to add special coverage options to your policy. Roadside assistance covers your vehicle if your engine breaks down and you need towing service. Your insurance company can also help you decide if you should add new car replacement coverage.

While going through the process of a new car purchase can be stressful, you must remember to notify your insurance company of the purchase. When looking for your next auto insurance policy, turn to the Lone Star locals at Reata Insurance Group. From San Antonio to Beaumont, Amarillo to Houston, we serve Texas motorists with the quality car insurance they need and deserve.

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