Purchasing a Vehicle When the Office is Closed

Many times we receive a phone call on Monday morning from a client requesting cancellation of their auto insurance.  The story happens to be that they purchased a vehicle on Saturday when our office was closed and the dealership required a certificate of insurance in order to leave with the vehicle.  The dealership recommends to call a 1-800 number for insurance in order to purchase the vehicle.

We, AS YOUR AGENT, do not recommend this and for many reasons:

Most of the time, the auto insurance is bundled, so valuable discounts will be lost.

You’re not speaking with an insurance adviser.

The likelihood for coverage to be missed is considerable.

ALL insurance companies allow “some time” to advise your agent of your purchase.  The common wording in the contract is “An insured/agent has …. Days/Hours to advise of a newly acquired vehicle OR a replacement vehicle.  The same coverage OR broadest coverage would apply”.   Each insurance company is different on the amount of time they allow, from as low as 48 hours to a high of 30 days.   Even with the carrier at a 48 hour limit, purchasing a vehicle on Saturday allows for this transaction.

BE INFORMED – if you only carry liability coverage on your current vehicle and are replacing/purchasing a “new” vehicle, the broadest coverage that would apply would be liability only.  It is most common to have a loan or a lease with a new vehicle and the financial institution will require full coverage. If this is your situation, wait until the next business day and contact the office to ensure you have to correct coverage on the vehicle you are purchasing.

Give your Aitken & Ormond Agent a call if you have any questions about purchasing a vehicle this holiday season.

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