Why It's Important to Notify Your Insurance Agent of a New Vehicle

Why It's Important to Notify Your Insurance Agent of a New Vehicle

January 18, 2024

Notifying your insurance agent when you get a new vehicle is crucial for several reasons:

  1. Coverage Adequacy: Informing your insurance agent allows them to adjust your coverage to ensure it adequately protects your new vehicle. Different vehicles may have different insurance needs, and your coverage should reflect that.  In addition, if you traded a vehicle for the new vehicle, the old vehicle will need to be removed.
  2. Premium Adjustment: The cost of insurance is influenced by various factors, including the type and value of your vehicle. Notifying your agent helps in adjusting your premium based on the new car's specifics, preventing any issues related to underinsurance or overpayment.
  3. Policy Updates: Your insurance policy includes specific details about your vehicle, such as the make, model, and VIN (Vehicle Identification Number). Updating this information ensures that your policy accurately reflects your current situation.
  4. Legal Requirements: It is a legal requirement to update your insurance information when you acquire a new vehicle. Failure to do so might lead to legal consequences and could jeopardize your coverage in the event of a claim. 
  5. Claims Processing: If you ever need to file a claim for damages or accidents involving your new vehicle, having the correct and up-to-date information on your insurance policy expedites the claims process. This includes accurate details about your vehicle for assessment and reimbursement.
  6. Discounts and Benefits: Some insurance companies offer discounts or benefits for certain types of vehicles or safety features. Informing your agent about your new vehicle ensures that you are eligible for any applicable discounts.
  7. Risk Assessment: Insurance companies assess risk based on various factors, including the type of vehicle you own. Providing accurate information helps your insurance company assess the risk associated with your new vehicle properly.
  8. Continuity of Coverage: Ensuring that your new vehicle is promptly added to your insurance policy ensures continuity of coverage. You won't face any gaps in protection, and your insurance remains in force without interruptions.

In summary, notifying your insurance agent when you get a new vehicle is a necessary step to ensure that your coverage is appropriate, compliant with legal requirements, and reflective of your current situation.  It is your responsibility to do so, not the dealerships.

Please contact Blue Ridge Risk Partners for all of your policy change requests. We are here to serve you!