I Am Buying a New Car Do I Need a New Auto Insurance Policy?
Reader’s Question:
Edward here from Philadelphia, Pennsylvania. My car’s has been freaking out lately so I’m thinking of retiring it and getting a new one. Will I also have to buy new insurance for the new one or can I just use the current one I have?
Edward
Philadelphia, PA
Hi Edward, that’s a good question. My advise to you is, talk to your automobile insurance provider in Philadelphia, Pennsylvania about it. Different insurance companies will have different rules about this. Here are a few things to note if you want to carry over your current insurance to the new car. Your new car will be covered for the same amount that your old car was covered. If it’s a pretty old car, I’m pretty sure you went the economical route and got just the minimum coverage amount required by law. This exposes you to greater financial risk if something unfortunate does happen. Also, your dealer or financer, (read: loaning agency) will most likely require you to buy additional insurance for the car. This would be your collision insurance to cover repairs for damage to your car if you get in an accident. You will most likely also need comprehensive insurance to cover most anything else that could happen that will cause you to lose your car or for it to be damaged.
The insurance companies have different policies and restrictions on replacing or adding vehicles under an insurance policy. Some extends the coverage of your insurance to the new or added vehicle for a couple days, while some give you more lee way. The main thing is, do update your policy as soon as possible to avoid possible financial blunders caused by little or no insurance coverage.
What is Minimum Coverage Auto Insurance Needed in Pennsylvania?
Reader’s Question:
What is the minimum coverage I need for on a vehicle that is financed in the state of Pennsylvania?
Ralph
Pittsburgh, PA
Your state Pennsylvania, like most, only requires liability coverage on cars but your finance company is not likely to agree. Finance companies typically require you to carry collision and comprehensive coverages on the car since until you pay for the car in full they have a financial stake in it.
Comprehensive and Collision coverages will help cover the car up to its actual cash value so they can recoup the value of the car if it is a total loss in an accident.
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