Adding a Vehicle to your Auto Policy

So, you’ve finally finished all the paperwork for your new vehicle, and you are now ready to drive it off the lot. Just before you leave the dealership insurance pops in your head. You want to make sure you are covered, so you give your agent a call to add the vehicle to your insurance policy. Very wise of you, but how does the process of adding a vehicle work? And what information does your agent need?

First of all, to make things clear you are temporarily covered for a new car you drive off the lot – given you have current active car insurance*.

However, it is very important you notify your agent ASAP to get the new vehicle added to your policy. It is very helpful to let your agent know in advance that you plan on adding a vehicle once you know what day you are picking it up.

If you have all the needed information on the new car, your agent can make sure coverage on the new vehicle is added the day you pick it up so you don’t have to worry about it.

*Whatever coverage you currently have is what coverage carries onto your new vehicle. If you only have liability coverage, the new car would have liability only until you add and request differently. Call ahead of time if this is the case!

When you call to add your new vehicle to your auto policy, your agent needs to know the following:

Year/Make/Model of the vehicle

Ex: 2020 Toyota Camry

Vehicle Identification Number (VIN #)

The VIN number is made up of 17 letters and numbers that insurance carriers use to pull everything they need to know about the vehicle. Any safety features are automatically pulled by the VIN.

Loan/Lease information

If there is a loan (also called a lien) or a lease on the vehicle, your agent needs to know who the loan/lease is through, and also the address listed on the loan paperwork. Often times this is a PO Box.

Lienholders need to be listed on your insurance so they receive a copy of the policy as proof that you have coverage. This makes it important to have the correct address listed.

Type of coverage you would like on the vehicle

If there is a loan/lease on the auto, full coverage must be put on the vehicle. If there is no loan/lease, you have the option of removing some coverage from the vehicle to save some money.

Your agent may recommend doing this on older vehicles due to the value. You can always have an open discussion with your agent about what coverage to put on your vehicle.

Purchase Date

The day you pick up your car.

Replacing a vehicle or an additional vehicle

Notify your agent if you are trading in an older car of yours for a new car, or if this is just going to be an additional vehicle. You should also inform your agent if you plan to sell one of your cars in the near future.

The dealership will not call your agent to notify of a new vehicle purchase. Therefore, it is very important to notify your agent of any new vehicle yourself.

Gap Coverage

Something to be aware of when having a loan or lease on a new car is something called Gap Coverage. Gap coverage protects you from owing more on an automobile than it is worth in the event of a total loss.

For example, say you have a loan on a car and you currently have $6,000 left to pay off on the vehicle. You get into an accident where your car is totaled. The current value of your car is only $5,000 which is what your insurance company will payout. Gap coverage picks up the $1,000 difference.

Often times gap coverage is included in a loan or a lease, but it is important to be certain of that. If gap is not included in the loan/lease, it can be purchased through your dealer or through your CRG agent.

Where we come in

It is definitely worth a conversation with your agent if you need to purchase gap coverage separately. It may be cheaper to go through your agent.

Buying a new car is a process. A lot of time goes into finding the right car and then purchasing it. When you call your CRG agent, we make adding the car to your insurance the easiest part of the process.

Related Reading: How an Independent Agent Adds Value

We can have it added in minutes. So, you can worry less about insuring the car, and focus more on showing it off.