When you buy a vehicle from a dealership and finance it. Isn’t it a law that you have to have full coverage on the vehicle in order to get financed?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Dec 6, 2011
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Las Vegas, NV
Asked on 12/06/2011
When you buy a vehicle from a dealership and finance it. Isn’t it a law that you have to have full coverage on the vehicle in order to get financed? I bought a vehicle nov 23rd 2011 and hit a curb nov 25th 2011. I hadn't called Geico yet because of the holiday and now my claim was denied because I hadn't called yet? The car I traded in was on the insurance already and Geico is claiming that the car I bought was a replacement vehicle and it really was not. The car I traded did not run and I could not drive it anyway.
Answer given on December 07, 2011
When you purchase a new or used car as an additional vehicle or a replacement vehicle, it is automatically insured by your insurance company for a period of 5-30 days, depending upon the insurance company’s rules for newly purchased vehicles. The insurance protection on the new car will be the same as the existing car, or the car that was replaced. If you have more than one car, the car with the most insurance coverage will be the coverage provided on the new car.If the car you had insured previously did not have comprehensive or collision coverage on it, and you don’t have another car with more insurance coverage, then the new car would only have liability insurance on the new car. Since the old car didn’t run, it is unlikely you had collision insurance on it, so you would not have any coverage on the new car.You may want to see if the dealership has any coverage on the car. sometimes they insure the car until they can confirm proper insurance on the car with your insurance company.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.