Insuring your new car with existing car insurance coverage

So you are in the market for a brand new car. You’ve been visiting dealerships, test driving, doing online research and now you’ve narrowed your choices down to a few different models. Once you make your final decision, you’ll most likely have your new car for a few years at least, and of course you’ll need to insure your new car with existing coverage.

In order to drive your new car off of the lot with your own coverage (i.e. if you don’t buy temporary coverage from the dealer) you will most likely need to provide proof that your current insurance coverage is adequate.

Depending on the dealer, you might be able to just show your insurance paperwork (in which case you’ll usually have 7-30 days before you have to report your new car to your insurance company), but other dealers may require that your insurance company fax over proof of insurance.1

That said, not everyone may have the correct level of coverage for a new car – or are not sure how to get the best / most affordable coverage possible for their new vehicle – so let’s go through a few possible scenarios that might fit your situation.

You are trading in your old car

If you are moving on up from your classic to a brand new car, then it is unlikely that your existing coverage will be enough to let you drive your new car off of the lot. This is because many people with older vehicles do not carry comprehensive coverage and perhaps no collision coverage as well – both of which you will likely need in addition to liability coverage to satisfy the requirements of your new car loan.

If this is the case, you are best off getting free quotes from multiple insurance companies for all of the models that you are shopping for and then once you make your purchase, simply call your agent to purchase the best quote you found for that car model.

You are trading in a relatively new car for a brand new car

If, however, you are trading in (or are going to sell on the private market) a relatively new car on which you carry comprehensive and collision coverage, then you have a couple options. First, you could stick with your current insurance company until at least your next policy renewal, and then transfer your coverage over to your new car (though of course your rate might still change). Otherwise, you could do as we suggest above and shop for a completely new quote at the time of purchase without waiting for your current policy to expire.

Your new car will be part of a multiple vehicle policy

If you are insure new car with existing coverage multiple vehicle policy (that might also include your home insurance bundled in as well) then in this case, it might make the most sense to wait until your renewal period before shopping around for new insurance, in order to simplify things.

Adding your new car to an existing multiple vehicle policy is a pretty quick and easy process, so you may not want to deal with the paperwork of changing your insurance coverage while also dealing with a new car loan. However, a couple of weeks or a month from now may be a great time to see if you can save some money on insurance for your new prized possession.

Who is Answer Financial?

As one of the nation’s largest and most reputable auto & home insurance agencies, Answer Financial has insured nearly 5 million homes and vehicles. We work with more than 40, top-rated carriers to save our customers an average of $565 a year on insurance.

On our mobile-friendly website, shoppers can quickly compare rates and customize coverages from multiple home insurers. By simply entering your zip code and home address, Answer can search publicly available records like square footage and year built to deliver side-by-side comparison quotes from reputable insurance companies.

Answer Financial can help you compare, buy and often save the smart way on insurance. So before you shop, remember to rely on your insurance experts to find you the right home insurance plan for your needs and budget.


  1. Lynn on May 22, 2014 at 2:46 pm

    My husband bought a new Subaru less than a week ago. The dealership only asked for a screenshot of his current insurance policy number. He didn’t ask my husband if he had full coverage (which he does not. Just liability) not knowing any better, we drove the new car home.
    3 days later, the car was hit in a parking lot. The driver of that car fled the scene. Is it going to be on us to fix the damage or is it the dealer’s fault for not informing us?

    • Crystal on June 8, 2015 at 5:18 pm

      Lynn, I am curious to see how this was resolved and who you had insurance with. I have heard that sometimes they will not cover the claim but that sometimes they will.

  2. satya prakash on April 21, 2014 at 8:54 am

    i am planning to buy car in the next week and would like to know the best car
    economic comprehensive insurance available in hyderabad