Buying a Car? Update Your Insurance

Buying a new car can be one of the most exciting and frustrating things we do all wrapped up into one. But once you locate the ideal match and sign on the dotted line, you might just be eager to close your deal and put all that tension behind you as you shift to your new ride.

You don't need to hurry through the car-buying process, but be sure to not overlook a few minor steps in finalizing the car purchase, like updating and transferring your car insurance.

If you're replacing an existing vehicle or buying a new one, follow the procedure below to ensure that you and your new car are prepared to roam roads.

Step 1: Alert your insurance provider.

Unfortunately, there s a frequent belief that the dealership will update your insurance agent, but often that s not the case. This leads to a dangerous gap in coverage and protection for your vehicle. To remove the guesswork, contact your insurance company to let them know you ll need to update your auto insurance policy.

To help during the transition period, your insurance company may have a short grace period where they'll cover a new car until it's officially added to your policy. For example, based on the level of coverage, Grange Insurance policyholders will have up to 30 days to take advantage of their independent agent and make modifications to their policy.

You can also contact your insurance company ahead of time to start the accounting process before you have the keys to your vehicle. Give the vehicle identification number (VIN) to your insurance agent ahead of time. That way, you'll already have your insurance in place when you pick up your new vehicle.

Updating your insurance policy to include your vehicle is important too. Not only do you receive your new insurance ID badge for your vehicle, but if you wind up being stopped by the police or get in an accident, your registration will be up to date and you will be properly covered.

Step 2: Review your coverage.

While you're in contact with your insurance agent, make sure to take time out to update your auto insurance policy and make sure that it's a good choice for your lifestyle.

By purchasing a new car, are you also adding a teen driver or a spouse to your insurance? Do you need to increase the amount of your coverage or add new coverage options?

Generally, if you're exchanging an older car for a newer one, you'll want to make sure all upgrades are fully covered too. Contact your independent insurance agent for guidance so you make the right choice with your coverage.

Step 3: Verify your changes.

After your insurance claim is processed, make sure you get your new insurance identification card and discard the old card.

Once your automobile insurance policy has been updated, take time to examine your changes to make sure they were correctly recorded. Review your updated policy once you've received it from your insurance agent. Keep your agent in mind if you need help reviewing your insurance policy, or if you need help understanding its terms.