Buying a new car is an exciting milestone, but it also comes with responsibilities like updating your insurance. This process involves several steps, and it’s crucial to do this as soon as you make the purchase, or even a couple of days before, to take advantage of the grace period most insurance companies offer. This grace period allows your new car to be covered under your existing policy temporarily, but it’s essential to update your policy quickly to avoid any gaps in coverage. Here’s what you need to do:
Step 1: Notify Your Insurance Agent
According to the Massachusetts Division of Insurance Consumer Service Unit, a car cannot be registered in Massachusetts without an active auto policy. As soon as you buy your new car, or even a couple of days before, contact your insurance agent. Agents can’t make policy changes, like adding or replacing a car, without your permission. This means a dealer could send registry paperwork to your agent, but processing will be delayed until the agent can reach you. Proactively communicating with your agent about buying a new car will expedite the registration process.
Step 2: Provide Your Agent with These Details:
- Make, model, and year of the car
- Vehicle Identification Number (VIN)
- Purchase price or financing details
- Next, your agent will help you choose the best coverage, whether it’s comprehensive, collision, or higher liability limits.
Step 3: Gather the Necessary Paperwork
Then, you’ll need specific documents to update your insurance and register your car with the RMV. These include:
- Bill of Sale or Purchase Agreement
- Proof of Insurance (Binder)
- Driver’s License
- Title and/or Registration Documents
- Ensure all paperwork is accurate and up to date to avoid delays.
Step 4: Understand Your Coverage Options
If you’re financing a car, lenders often require comprehensive and collision coverage. Therefore, discuss these options with your agent to ensure you comply with loan terms and protect your investment.
Step 5: Don’t Forget Discounts
Finally, ask your agent about potential discounts for bundling policies, installing safety features, driving low mileage, or maintaining a clean driving record.
By taking these steps, you’ll drive off with peace of mind, knowing your new car is fully protected. Your insurance will be up to date, your paperwork in order, and your coverage tailored to your needs. Plus, you’ll be compliant with loan requirements and potentially save money with discounts.
Call us today to discuss how you can enjoy your new ride without any worries. We’re here to help you protect what matters most!
Questions on your auto insurance? Contact Carly Longo at (508) 824-8666 or at clongo@fbinsure.com
View this article on LinkedIn: New Car Next Steps Article – LinkedIn
Learn more about auto insurance FAQ’s here: Auto Insurance Solutions – FBinsure
