Transferring insurance to a new car

Are you getting ready to drive home in a new car? Congratulations! Whether it’s your dream ride or a reliable upgrade, making sure it’s properly protected is an important step. If you already have auto insurance, you might be wondering if you can transfer coverage to your new vehicle or if you need to purchase an all-new policy.

Let’s walk through what you need to know about transferring car insurance and how to keep your new car coverage seamless.

Can I drive my new car without insurance?

First things first — you need insurance. In almost every state, dealerships require proof of insurance before handing over the keys. If you’re buying your first car, you’ll need to purchase coverage before completing the sale. The dealership can help share your new vehicle’s info with your insurance company.

If you’re already insured, you usually don’t need to purchase an entirely new policy. Instead, you can update your existing policy with your new vehicle’s details. Your agent can help you review your coverage and make sure your new car is protected.

Do I need insurance before I buy a used car?

The same rules apply to used cars — you’ll need insurance to drive the car off the lot. For help navigating the coverage process for a new or used car, connect with an American Family Insurance agent.

How long do I have to transfer insurance to a new car?

If you’re already insured and want to switch coverage to your new car, most policies offer a grace period to complete the transfer. That means you have a little breathing room to get everything squared away, but it’s best not to wait. Learn more about transferring insurance and updating your policy from your American Family agent.

Do I need to purchase gap insurance?

Lease and loan gap insurance isn’t required, but it can be a smart addition to your policy if you plan to lease or finance your car. Here’s how it works: If your car is totaled in an accident, gap coverage helps pay the difference between the vehicle’s actual cash value and what you still owe on the loan. For example, if your outstanding loan balance is $17,000, and your car is valued at $14,000, gap insurance can help cover the remaining $3,000.

Dealerships often offer this coverage as part of the car purchase package, but you may be able to add it to your auto insurance policy for a more affordable price.

Tips for a smooth transition

Want to transfer insurance to a new car? Keep these tips in mind:

• Make sure you have proof of insurance before heading to the dealership.
• Let your insurance agent know as soon as you choose your new car.
• Review your current coverage and consider any updates needed.
• Ask about optional coverages like gap insurance or roadside assistance.

Protecting your new car is simple and convenient when you have the right support. Your American Family Insurance agent can answer your questions, update your policy, and help you feel confident your new set of wheels is covered. Contact us to get started.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.