YOU ASK:

Are replacement vehicles automatically covered under auto insurance?

WE ANSWER:

Yes, all newly acquired automobiles are automatically covered under a Personal Auto policy. Yet, coverage might depend on whether the new automobile is an additional, or a replacement vehicle. The named insured may or may not have to report the newly acquired vehicle depending on the type of coverage.

Replacement Vehicles under Liability, Medical Payments and Uninsured Coverage

If you buy a vehicle that you intend to replace the one specified in the declarations of your Personal Auto policy with, the newly acquired automobile automatically receives the fullest possible coverage under the PAP, without you having to notify the insurance company. The replacement vehicle auto coverage lasts until the Personal Auto policy expires.

However, if your new car is an additional auto and you do not intend to replace your existing one with it, you need to contact your insurer within 14 days after purchasing the car to request additional coverage for it. Although most companies give insureds a 14-day period for application, some insurers might allow a longer period, such as 28 days.

Replacement Vehicle Coverage under Physical Damage Insurance

Whether the newly acquired vehicle is a replacement or an additional automobile, is not important for damage to your auto coverage. The insurance company must be notified and coverage on the new car requested within 14 days of buying the vehicle. If the owner has at least one auto covered for physical damage, the new auto is automatically granted the broadest coverage provided for in the PAP declaration.

If the Personal Auto policy does not include physical damage coverage, the insured must request such from the insurer within a maximum of four days after purchasing the new car.

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