When I Go to Buy a New Vehicle, Does That Car Have Coverage? 

Purchasing a new vehicle is an exciting venture, but it also brings the responsibility of ensuring that the vehicle is adequately insured. Whether your new car has coverage as soon as you drive it off the dealership lot is a common question, and the answer can depend on several factors.

Understanding Immediate Coverage

When you buy a new vehicle, your existing auto insurance policy might provide temporary coverage for your new purchase. However, this is not a guarantee and depends on the terms of your policy.

Some insurance policies may offer a grace period during which your new vehicle is covered under the terms of your existing policy. However, this is not universal, and you should not assume coverage without confirmation from your agent or insurance company.

Insurers typically require that you notify them that you purchased a vehicle within a specific timeframe to maintain coverage.

Pennsylvania’s Minimum Auto Insurance Requirements

In Pennsylvania, the law requires that all drivers carry a minimum amount of auto insurance, including the following:

• Bodily injury liability may help cover costs related to injuries to others in an accident you cause.
• Property damage liability may help cover damage to another person’s property in an accident.
• Personal injury protection (PIP) may help cover medical expenses for you and your passengers regardless of who is at fault in an accident.

Your agent may recommend additional endorsements and policies to provide adequate coverage. If you lease or finance your new vehicle, you may be required to buy collision and comprehensive coverage to help pay for repairs or replacement of your car if a covered accident or incident damages it. Your lienholder may also require uninsured/underinsured motorist coverage to help pay for damage caused by a driver without appropriate insurance coverage or someone who doesn’t have enough insurance to pay for the damage they cause.

Contact Us

Before driving your new vehicle off the lot, it’s crucial to understand the specifics of your auto insurance coverage. If you’re in Macungie, Pennsylvania, and have questions about ensuring your new car is covered, or if you’re looking to review your current auto insurance policy, Valera Agency is here to help. Contact us for personalized advice and assistance with all your auto insurance needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.