Of course no one wants to drive for even a minute without insurance against claims for personal injury caused by a car accident, and for damage to any cars in an accident. Here in San Francisco, car accidents can cost tens of thousands of dollars even if no personal injury is involved. Sometimes, people will delay taking delivery of a new car until they have notified their insurance carrier of the purchase. But, especially with used cars purchased on an evening or weekend, this is not always feasible. This can be especially inconvenient if the car you are buying is far from home. Fortunately, most major insurance carriers will cover you for damages caused by a car accident, including personal injury claims, when you buy a new or used car, even though you have not given them any advance notice. Typically, you must notify the carrier and confirm coverage of the additional car within 30 days of purchase. The coverage extended for "newly acquired" cars is usually the same coverage you had for your other car or cars.
Before you rely on this coverage, you should either look at your policy brochure, and/or call your agent to confirm that this type of coverage is included in your policy. Look in the Definitions section at the beginning of the policy for the phrase "newly acquired." Auto insurance carriers typically don't put their policy terms online, but here's a link to a recent State Farm Policy. Look on page 2 for the "newly acquired" terms. Here's an important warning though: If you have an older car, and have dropped collision and/or comprehensive coverage, you will need to make arrangements with your agent before you put your new car into gear.
After you confirm that your policy does include full coverage for "newly acquired" cars, you are free to shop, buy, and drive right off with the confidence that you are covered so long as you inform your insurance company within the 30 days specified. If the "newly acquired" car is replacing one of the cars on your policy, rather than adding an additional car, you may be covered even if you do not notify the insurer. To be sure you are covered for car accidents in California, though, you should always notify your carrier of a car purchase well within the thirty days.
Contact a California injury lawyer at Callaway & Wolf for a free consultation about your car accident case. Callaway & Wolf have practiced together for over 17 years, and have handled many car accident injury cases in San Francisco, Oakland, Marin, and around the San Francisco Bay Area.
