How to Handle Auto Insurance When Switching Car Ownership

Whether you’re buying a new car or selling your current one, ensuring that you have appropriate insurance is essential to avoid any gaps in coverage or unnecessary expenses. Here’s a guide to help you navigate this process smoothly.

Notify Your Insurance Company Early

As soon as you decide to buy or sell a vehicle, contact your insurance provider. Inform them about the upcoming change in ownership and provide details about the new vehicle or the sale of your current one.

Get Coverage for a New Vehicle 

If you are buying a new car from a dealership, you may need to secure appropriate auto insurance before taking the vehicle home. Contact your insurance company with the details of the new vehicle (e.g., make, model, VIN) to get a quote and set up coverage.

Transfer Coverage

Some insurance policies allow you to transfer coverage from one vehicle to another within a certain period. Check with your insurance provider if this option is available and what the process involves. This can often save you time and paperwork.

Remove Coverage for the Old Vehicle

If you’re selling your current vehicle, you’ll need to cancel the insurance coverage once the ownership transfer is complete. Provide your insurance company with the details of the sale so they can adjust your policy accordingly.

Ask About Gap Coverage

Avoid any gaps in coverage between the sale of your old vehicle and the purchase of your new one. Even a brief lapse in insurance can lead to legal and financial consequences. Your agent can help coordinate the timing of canceling insurance on the old vehicle and activating it on the new one to ensure continuous coverage.

Update Your Policy Details

Once everything is finalized, review your updated insurance policy documents carefully. Ensure that all the information is accurate, including the details of your new vehicle and any changes in coverage or deductibles.

Learn More

Contact Kevin McLoughlin Agency in San Antonio, Texas, for help with auto insurance when buying or selling a vehicle.

This blog is intended for informational and educational use only. It is not exhaustive and shoul