Important Reminder: Don’t Depend on Your Dealership to Notify Your Insurance About Changes to Your Policy!
As an auto claims adjuster, I want to share a crucial lesson from a challenging call I had today. I had to deny a claim because a vehicle purchased over a year ago was never added to the owner’s insurance policy. The customer was overwhelmed during the purchase process, and the dealership assured her they would contact the insurance company to handle the addition for her. Unfortunately, this can lead to a lot of issues:
- Dealerships often promise to call but may not follow through.
- Only the policyholder can request any changes to their insurance policy, meaning the dealership cannot make updates on the customer’s behalf.
- If a dealership somehow manages to make changes to your policy, this could indicate that your agent or customer service representative is bypassing standard procedures, which poses a potential security risk. In that case, you might need to consider reporting them or looking for a new agent or insurance company.
Most importantly, insurance policies typically require you to notify them about a new vehicle within 30 days of purchase; otherwise, it may not be covered in the event of an accident (this timeframe can vary based on your insurance provider and state, so always check your policy).
In this instance, the customer placed her trust in the dealership to handle the insurance update, only to find out a year later that her new car had no coverage. After being involved in a no-fault accident with the other driver lacking insurance, her vehicle is likely totaled, leaving her in a tough spot.
To avoid finding yourself in a similar situation, always communicate directly with your insurance company when buying, leasing, or selling a car. They can provide quotes for your new premiums and ensure all updates are processed efficiently, giving you peace of mind that your policy accurately reflects your current vehicle situation.
This is such an important reminder! It’s easy to assume that the dealership will handle everything, especially when you’re already overwhelmed with the car-buying process. However, as you’ve pointed out, relying on them to communicate with the insurance company can lead to unfortunate situations, like the one you described.
Keeping open lines of communication with your insurance provider is crucial, especially regarding policy updates. Just a quick call or email can ensure that everything is properly documented and that you have the coverage you need. Thank you for sharing this insight and highlighting the importance of personal responsibility when it comes to insurance matters! It’s a tough lesson for those who find themselves in similar situations, but hopefully, posts like this will help others avoid similar predicaments.