When purchasing a new car you may have some questions about automatic coverage and how it is extended to new vehicles. If you presently have automobile coverage then your new vehicle will be automatically covered under your existing policy. This means that your automobile will still be covered under the policy of your old vehicle for this time. Auto insurance companies allow this grace period so that car buyers have a period of time under which they can research policies and acquire the correct insurance package for them.
Extended automatic coverage will usually only last about 30 days. Within these 30 days the car buyer needs to create a new insurance policy under their new vehicle, which includes making sure the title is transferred to their name and registering the new car. Sometimes the company will allow you to keep your coverage policy until the end of your term, but if you do so they may bill you more at the end of the term if the car you purchased is more expensive to cover.
For more information about auto insurance and how automatic coverage is extended during a new car purchase contact Young Insurance.