Monday, August 13, 2012

You bought a new car? How soon do you need to tell your insurance company?

Q: I bought a new car a week ago, but I didn't want to call my insurance company yet, since I know my premium will go up. How long can I wait?

A: Do not wait. We're not kidding about this. Some auto insurance policies limit automatic coverage for a new or replacement vehicle to 14 days after purchase. Some others allow up to 30 days.

Here's why it's not worth the risk: If you wreck your new car and your claim is denied, you'll be out a lot more money than you saved on the premium.

The upshot: immediately contact your agent or insurer to add the vehicle and update your coverage.