Does my current Auto Insurance automatically cover my newly bought car for 30 days in TX?

Question

So I just bought a new car and had a bit of processing delay from my Auto Insurance company. My car dealer at Lexus says that I can take the car home. He said that under TX law, any Auto Insurance automatically covers any new car purchase for up to 30 days from the purchase date. Is this true in TX? I could not find the source for this information online. Can anyone point me to the TX Department of Transportation law for this?

Answer 1

NOT TRUE!!  What he's doing, is acting as an agent, without a license!!

IF this is a replacement vehicle, as in, you traded in a vehicle, AND you have a standard policy, then whatever cover you had on the old car, applies to the new car, AS LONG AS you notify the company within 30 days, AND make the change effective the date of the trade.

IF this is a NEW car, or an ADDITIONAL car, NOT A TRADE, then you get ZERO days of coverage.   If you have a non-standard policy, you get ZERO days of coverage.

This guy can go to jail, for giving you insurance advice without a license.  All you have to do is report him to the TX insurance department.  OH< and it might be amusing to have him put it in writing, so you can sue the heck out of him, if the car is totaled on the way home and you have no coverage.

Answer 2

I am not familiar with a 30 day law.  Our company has a policy of 14 days and that is only if you contact your agent within the 14 days.  Ready your policy under newly acquired car and or replacement vehicle rules and then call your agent to confirm.

Answer 3

Many insurance companies use the Texas Personal Automobile Policy, a standardized policy form that offers eight types of coverages. Companies may sell alternative policies if the Texas Department of Insurance (TDI) approves them in advance. Read your policy carefully, as coverages can vary by policy and company. Pay special attention to the exclusions section, which lists the things your policy doesn’t cover. The front page of your policy is called the declarations, or “dec,” page. It shows the exact name of your insurance company, your policy number, and the amount of each of your coverages and deductibles.

Answer 4

For car insurance the obvious way to get a good rate is do a policy comparison on car policies. Make sure that you choose similar options with the same limits, auto type, location, etc so that all options are a good comparison.



What I usually recommend is an online comparison quote at http://www.InsureAutoNow.info since they have lots of insurers and will give several prices on car insurance polices.

Answer 5

thats not true in ga i live in georga most car dealer wont let u drive the car if u dont put insurance on it if u got insurence on it u can drive with a dealer ship tag or with out a tag for 30days afhter 30day u need to get it resisterd u do this by going to the loacal tax office and get a tag

Answer 6

Answer from a Texas General Insurance Agent

It depends on what kind of coverage you currently have and whether it is a replacement or additional vehicle.

In Texas you do have thirty days to notify your insurer of a "Replacement Vehicle". The key term here being "Replacement Vehicle".

Your Texas auto insurance policy will transfer automatically with the existing coverage limits that you already have on the vehicle being replaced or traded in. If you have Full coverage, then that transfers to the new vehicle. If you have only liability, then only that liability will transfer without coverage for the car being driven.

If this is an "Additional Vehicle" purchase, then it will not be automatically covered for anything at all until it has been added to your policy.

Good Luck and Happy Motoring