You’ve been patiently searching for the perfect new car. You just signed your name on that last piece of endless paperwork. Now, with keys in hand, it’s finally time to drive off the lot.
But as you take in that new car smell, a thought suddenly crosses your mind: Do I have insurance?
Good news: If you’re an Erie Insurance customer (listed as the named insured), the short answer is usually “yes.” Here are some common questions about how insurance works when buying a new car.
Do I have insurance when I drive my new car off the lot?
When you’re with ERIE, your current auto policy doesn’t just vanish when you trade in your old vehicle. As long as your new vehicle is titled in your name and you are the named insured on the policy, your coverage carries over when you buy a new vehicle of the same type.
So, if you already have a car insured with ERIE and you’re buying a car, the coverage rollover applies. But if you’re buying a first-time motorcycle or RV, your auto coverage won’t rollover since you’re buying a different type of vehicle.
If you’re buying an additional vehicle (and it is titled in your name), your new car will have the broadest coverage purchased on any vehicle on your ERIE policy. If another private passenger vehicle you own isn’t insured with ERIE, coverage from ERIE does not automatically rollover. For help with this, we always recommend you ask your ERIE agent about what to do in your specific situation.
Here’s an example: Let’s say you, your spouse and your teenage son are all on the same ERIE policy. Your spouse’s newer SUV is covered with high limits and multiple endorsements, like ERIE Auto Plus and Roadside Service Coverage. However, you opted not to get all the bells and whistles on your teenage son’s old high-mileage clunker. When you buy a new car, the broadest coverage – in this example, what’s on your spouse’s SUV – is what will temporarily apply to your new ride.
