There are a number of scenarios in which an existing auto insurance policy must be moved to a new vehicle. The most common of them is during the title transfer when purchasing a brand-new or used car.
However, you should check with a reliable insurance broker about how your policy works with any car that you don’t own so that you can transfer coverage if you need to. In the event that you decide to buy a new car, they’ll assist you with transferring your insurance to the new vehicle.
But in order to hire a reliable broker you must do research. Start by looking locally. For example, if you’re from Toronto, Canada, search for the highest-rated Toronto car insurance broker to guide you through the process and help you transfer your existing insurance coverage to your new vehicle.
If you want to maintain your existing auto insurance policy this article will walk you through the insurance transfer procedure.
Transferring Your Car Insurance When Purchasing a New Vehicle
Whether you’ve had an accident and totaled your old vehicle or have simply traded it in, you can keep your insurance coverage under the same policy. This is a rather straightforward process.
In order to swap out one vehicle on your policy for another while keeping your current level of coverage, you must first contact your insurance company. They will need the vehicle’s unique identifying number, registration, and any other information relevant to the policy, such as the car’s mileage and any aftermarket additions.
Keep in mind that your auto insurance rates might fluctuate even if the new car is covered under the same policy as your old one. This is due to the fact that some vehicles have higher insurance rates than others.
For instance, the cost to repair a luxury vehicle sometimes results in higher insurance premiums. Keep in mind that insurance premiums for imported vehicles can be higher because of the added expense of fixing them using either rare components or highly trained technicians. In the province of Ontario, Canada, for instance, the Jeep Wrangler was ranked as having one of the lowest average annual premiums for car insurance.
It’s always a good idea to compare the vehicle insurance quotes provided by your current insurer with those of other providers in your region if you want to score the best possible prices on your car coverage.
When Renting a Vehicle, Can You Take Your Insurance With You?
Your current auto insurance coverage might be able to cover you when you’re behind the wheel of a rented vehicle. If you have full coverage, the collision portion of your policy will be responsible for paying for the damages.
In this scenario, your deductible will be activated, and if there is an accident, you’ll be responsible for paying your deductible to the rental car company. If you return the car undamaged, many rental car agencies will refund your credit card the entire amount of your deductible.
However, there are certain plans that don’t let you transfer coverage to rental vehicles. Because of this, it’s imperative that you check with your insurance broker to see whether or not there are any restrictions on this matter.
In addition, you can’t just transfer coverage to a buddy when you rent a car from them; you have to go through an official rental agency or garage. Damage to specialized vehicles, such as moving trucks, might also not be covered by your auto insurance policy.
Does Borrowing a Friend’s Vehicle Affect Your Insurance Coverage?
Most policies cover the vehicle, not the person driving it. If you borrow a car from a friend or family member and get into an accident, the other driver’s insurance will pay for the damages, not yours. Even if it’s not their fault, your friend will see an increase in their auto insurance premiums as a result of the claim being on their record rather than yours.
There are situations in which you can make a claim on your own auto insurance to cover damages sustained in an accident while driving someone else’s car. If the car insurance doesn’t cover the whole cost of the collision, for instance, your policy can pick up the slack. In most cases, this will only cover the costs incurred by the other party in the collision and not your own vehicle.
Final Thoughts
Because of regional variations and policy specifics, auto insurance regulations can be difficult to navigate. Contacting a respected local broker who will gladly go through the terms of your policy and how it will behave in any particular circumstance, is your best bet if you have questions about how coverage applies in a specific case.
Before letting anybody drive a car you own or borrow someone else’s vehicle, you should familiarize yourself with the policy’s provisions to avoid any unpleasant surprises in the event of a claim.
