When Should You BuyAuto Insurance?

• When you decide to buy an auto. You should have insurance in force on the day you first drive the auto as your own. If you obtain license plates prior to purchase, you will have to have an insurance company who has agreed to write your insurance and who has given you a policy number. The insurance will not need to be effective until you first drive the auto as your own. However, the Department of Motor Vehicles requires compliance with Virginia's financial responsibility law before you receive your license plates. You should consider having comprehensive coverage in effect on the day you obtain legal title to the auto even if you do not plan to drive it immediately. This will guarantee that if your auto is damaged or stolen before you drive it, you will be compensated. 
  
  
• When you trade autos or purchase additional autos. If you purchase an automobile, it is automatically covered during the policy term if it replaces a car already on your policy. If you purchase an automobile in addition to the cars you already insure, most policies provide coverage for a limited time, usually 30 days. If you trade autos or purchase a new auto, the company will provide only the coverages that you have in the policy unless you notify your company of the changes. It is a good idea to notify your company as soon as possible when adding or deleting cars on your policy although most policies allow at least 30 days for such changes to be made. If you have to borrow the money to purchase the car, your lender will require that you purchase physical damage coverage. If you do not have this coverage on your own policy, the bank may get a policy to cover their interest only.
  
  
• When your policy is up for renewal. It is a good idea to regularly shop for auto insurance immediately prior to your annual renewal date. Check to be sure that you are buying the right types of coverages with the best combination of price and service. If you decide it is best for you to change automobile insurance companies at renewal time, you should be aware that Virginia law allows an insurance company to cancel a new policy during the first sixty (60) days that the policy is in effect. This means that you may be denied insurance by the new company you have chosen after your old policy has already expired. The best way to prevent this from happening is to tell the new agent or company when you apply for a policy everything about your driving habits and your driving record especially if you have been convicted of traffic violations or have been involved in an automobile accident.