I have a car insurance question. Just to give some context, I’m not very knowledgeable about insurance or the car buying process. I previously bought my current car outright from a private seller, so I’m not familiar with how things work at a dealership.
Tomorrow, I’m trading in my car at CarMax and using that, along with a down payment, to purchase a new vehicle. However, I need to have insurance on the car I’m trading in in order to complete the trade, and I also need insurance on the new car before I buy it. Right now, I only have insurance on my current vehicle, and I can’t afford to pay for coverage on both cars at the same time.
My question is: Will I be charged for adding the new car to my USAA policy, or will they only charge me when the payment is due—presuming both cars are insured at the same time (which they won’t be)?
What I would like to do is add the new car to my policy today, and then once everything is finalized tomorrow, remove the insurance from my old car. Would that work?
It’s great that you’re reaching out for clarification on this process! When it comes to car insurance and adding a vehicle, here’s how it generally works, especially with USAA:
Adding the New Car: You can typically add the new vehicle to your policy before you complete the purchase. When you call USAA, let them know you are acquiring a new vehicle. They will provide you with the necessary confirmation of coverage, which you can show to the dealership when you’re finalizing the purchase.
Coverage During the Transition: Most insurance companies, including USAA, allow a grace period during which you can have both cars covered simultaneously without being charged for both policies at the same time. However, you’ll want to confirm the specifics with USAA, as these details can vary.
Removing the Old Car: After you’ve traded in your old vehicle, you can contact USAA to remove it from your policy. Generally, the charges will reflect only the vehicle(s) you have coverage on at the time of payment, so you should be able to add the new car and remove the old one without incurring extra charges.
Payment Timing: Since you’re only planning to have both cars on your policy for a very short period (e.g., the day of the trade-in and purchase), you might only see an adjustment when your next payment is due.
To summarize, you should be able to add the new vehicle to your policy, finalize the purchase, and then remove the old vehicle without paying double coverage. Just give USAA a call for the most accurate guidance and to ensure the transition is seamless! Good luck with your new car!