What to Know Before Adding a Vehicle to an Existing Insurance Policy

By the Mercury Team

How does insurance work when buying a new car? Whether you’re upgrading to a newer model or simply adding another vehicle to your household, you might think you have to start from scratch and get a new insurance policy. Fortunately, that’s not the case! You can easily add a new car to your existing auto insurance policy, saving you time, money, and hassle. In this blog, we’ll guide you through the steps to ensure your new vehicle is properly covered, explain how your premiums might change, and highlight several potential discounts you could take advantage of.

Steps to Upgrade Your Car with Your Existing Policy

Upgrading your car under your existing insurance policy is a straightforward process. Here are some steps for transferring insurance to a new car:

Contacting Your Insurance Provider

The first step is to contact your insurance provider. Tell them about your plans to upgrade your vehicle and ask about the steps needed to add the new car to your policy. They can guide you through the process, explain any paperwork you’ll need to complete, and provide a quote for the updated coverage.

Assessing Coverage Needs

When you get a new car, it’s a good idea to think about what kind of coverage you’ll need. Your old policy might have been just right for your previous car, but a new vehicle might require a little more coverage. Consider the new car’s value, how often you’ll drive it, and whether you need additional protection like comprehensive coverage. Your provider is there to help make the process smooth and stress-free, so don’t hesitate to ask questions.

Reviewing Policy Limits

Take a moment to look over your policy limits, too. These limits define the maximum amount your insurance company will pay out in the event of a claim. With a new vehicle, you might want to increase your policy limits to better protect yourself financially. Chat with your insurance provider about what makes sense for you, as they can help you find the right coverage without breaking the bank.

Adding a New Car to Your Existing Policy

Adding a new car to your existing insurance policy is a great way to streamline your coverage and potentially save some money. Here’s how you can make the most of it:

Multi-Car Discounts

One of the best parts about adding another car to your policy is the potential for a multi-car discount. Many insurance companies offer this discount when you insure more than one vehicle under the same policy. Beyond saving money, keeping your cars under one policy makes managing it easier and more convenient.

Policy Adjustments for Additional Cars

When adding another car to your policy, you might need to make a few adjustments to ensure both vehicles are properly covered. Each car might need different coverage depending on its age, value, and how much you drive it. For example, a brand-new car may need full coverage, while an older vehicle might only need liability. Your insurance provider can help you tailor your policy to fit each car’s specific needs, so you’re covered from all angles without paying for unnecessary extras.

Key Considerations When Switching Cars on Insurance

When switching from your old ride to a brand-new car, there are a few things to keep in mind to ensure your insurance stays up to date and you’re fully covered:

Impact on Premiums

Your insurance premiums will likely change when you buy a new car. Newer cars often have advanced safety features like automatic braking, lane departure warnings, and collision avoidance systems. These features can lower your risk of accidents, which may lead to a reduced premium. However, if you’re upgrading to a higher-value vehicle, especially a luxury or sports car, your premiums could increase because it costs more to repair or replace.

Avoiding Common Mistakes

A big mistake people make when switching cars is forgetting to update their insurance. This can lead to a lapse in coverage, which could leave you unprotected in the event of an incident. Even driving without insurance for a short time can be risky.

To avoid this, contact your insurance provider as soon as you decide to switch cars. It’s best to update your insurance before you take ownership of the new vehicle. This way, you’re covered the moment you drive it off the lot. Plus, in some states and with some lenders, you’ll need proof of insurance before you can register the car or finalize a loan.

Also, make sure all the details of your new car, like the Vehicle Identification Number (VIN) and model, are correctly listed in your updated policy. Any mistakes could cause problems later on, so it’s worth double-checking everything.

Benefits of Updating Your Insurance Policy

Updating your insurance policy comes with some real benefits that can give you peace of mind on the road. Here’s why it’s worth taking the time to make sure your policy is up to date:

Enhanced Protection

When you get a new vehicle, you want to ensure it’s fully covered against potential risks. By updating your policy, you can customize your coverage to fit the specific needs of your new ride. Whether you add comprehensive coverage or adjust liability limits to match your driving habits, keeping your policy current ensures you’re protected no matter what happens.

Financial Security

Another big perk of updating your insurance is the financial security it offers. If something happens to your new car — like an accident or unexpected damage — an updated policy helps make sure you won’t be hit with surprise costs. Proper coverage can save you from expensive repairs, medical bills, and even legal fees if you’re involved in an accident.

Conclusion

Updating your insurance with a new car is easier than you might think, especially when you have the right guidance. If you’re looking for cheap auto insurance without compromising quality, Mercury is here to help. We can assist you in finding the best coverage for your needs at a price that fits your budget. Plus, you can save even more with our auto insurance discounts, which include our multi-car discount.

Contact us today for a fast, free quote!