You’re so proud of your new car; between driving it around to show friends and family, and preparing for a cross-province trip to test out the wheels, a couple of weeks have gone by since the purchase. Have you forgotten anything?
Did you notify your broker or insurer about your newly acquired vehicle (defined by the Ontario Auto Policy as “an automobile or trailer that you acquire as owner and that is not covered under any other policy”). We hope so, because you only have 14 days from the time of delivery until your new car’s automatic insurance (based on pre-existing coverage you have) expires!
Here is more (potentially expensive) information you may not know:
- Those first two weeks of coverage for your newly acquired vehicle will be exactly the same as what you currently have on existing and/or past vehicles. So, for example, if you don’t carry collision insurance, then your new set of wheels won’t have that coverage either.
- Your newly acquired automobile will get coverage based on your car with the least amount of coverage.
- That rule applies to all “vehicles” you own – including snowmobiles and ATVs – and many people don’t put collision coverage on them on recreational vehicles. So your newly acquired vehicle will not automatically get collision coverage the first 14 days you own it.
A newly acquired vehicle can be a brand-new or used car, and it can be either:
- A replacement vehicle – in which case, it will have the same coverage as the vehicle it is replacing; or
- An additional automobile – which will be covered as long as:
- Your insurer covers all the automobiles you own, and
- Any claim you make for the additional automobile is made against a coverage we provide for all your other automobiles; and
- You are not in the business of selling automobiles.
So, before you drive off the lot in the heady euphoria of new car ownership, make sure you talk to your insurance broker about how well you are covered. Why not make that call to your broker while you wait for your auto salesperson to get back from ‘talking to his manager’ about your purchase price? It will be a great use of your time!