Buying, Selling, & Renting

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Check with your agent for the following events:

  1. Purchasing or leasing a vehicle
  2. Selling your vehicle
  3. Renting a car or van
  4. Adding new drivers or lending your car

Understanding the A, B, & Cs of Auto Insurance

Obtaining a new car

If you have an existing auto insurance policy, most carriers allow a 14-day window to report an update to your policy if you have purchased a new car. This is contingent on your current policy having full coverage. This means your policy must provide liability, comprehensive, and collision coverage on at least one car. If you are purchasing your car through a dealership, always follow up with your agent to ensure they know of the change to your policy. There may be changes in usage, drivers, or you may have sold a car outright and the dealer might not have knowledge of this change. Your agent will have other qualifying questions to confirm we are providing the right coverage for your new car.
Coverage enhancements are also available to assist you whether you are leasing, financing, or buying your car outright. Do you need loan lease or GAP coverage? Are you interested in new car replacement coverage, disappearing collision deductible, or a full-glass option? These are relatively new coverage options that you should discuss with your agent.

Selling your vehicle

Never remove coverage from the vehicle you are selling until the ownership has been officially transferred to another party. Always make sure the person who is test driving your vehicle has a valid driver’s license. Also, you still own the car, therefore you are responsible for maintaining insurance on it until ownership fully transfers. If they were to be involved in an accident, it would impact your insurance, not theirs.

Renting a vehicle

If you have full coverage on your personal vehicle, your coverage may carry over to the rental car. The coverage does have certain restrictions including the location you rent the car from (US vs. Europe), the purpose behind renting a car (business vs. pleasure), and the type of auto (Ford Taurus vs. moving van). There may also be gaps in coverage depending on the lease agreement and how your personal auto policy will respond in case of loss. Here are a few potential gaps:
  • In the event the rental car is totaled, your policy will pay the actual cash value of the vehicle at the time of loss. This takes into account depreciation.
  • The rental car company may ask you to replace the rental car with a brand new one – there is often a difference between what you would receive from your insurance company and what it would cost the rental car company to replace it.
  • Loss of income to the rental car company if the vehicle is damaged. For example, if the car is damaged and out of service while in for repairs, you could be responsible for renting the car until the repairs are complete.

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