http://www.goinsurancerates.com/auto-insurance/auto-insurance-coverage-for-new-cars/ Welcome to the GoMedia Network! Sat, 26 Nov 2011 21:00:09 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.goinsurancerates.com/auto-insurance/auto-insurance-coverage-for-new-cars/comment-page-1/#comment-16255 Kevin Sat, 05 Feb 2011 20:30:37 +0000 http:///auto-insurance/auto-insurance-coverage-for-new-cars/#comment-16255 Keep in mind it is not a "grace period" with regard to paying for the coverage. The vehicle is still added effective the date it was purchased and the cost of coverage begins as of the date of purchase. The "grace period" only applies to the actual notification-not the coverage itself. Also, many policies require that all vehicles currenlty owned by the purchaser be insured for coverage to extend. In other words. If they own 2 vehicles, but only 1 is insured, there is no extension of coverage to the newly purchased vehicle. And, as the above article touches on, gap insurance does not extend, and if there was not a substantial downpayment Actual Cash Value may not be adequate to satisfy the loan if the vehicle is totalled during this "grace period." Keep in mind it is not a “grace period” with regard to paying for the coverage. The vehicle is still added effective the date it was purchased and the cost of coverage begins as of the date of purchase. The “grace period” only applies to the actual notification-not the coverage itself.
Also, many policies require that all vehicles currenlty owned by the purchaser be insured for coverage to extend. In other words. If they own 2 vehicles, but only 1 is insured, there is no extension of coverage to the newly purchased vehicle.
And, as the above article touches on, gap insurance does not extend, and if there was not a substantial downpayment Actual Cash Value may not be adequate to satisfy the loan if the vehicle is totalled during this “grace period.”

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