Can you drop a car from being insured and buy a new one if you have an open claim?
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UPDATED: Feb 20, 2012
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Insurance Question from Arlington, TX
Asked on 02/20/2012
Can you drop a car from being insured and buy a new one if you have an open claim? I cannot afford to pay the deductible for my accident for the damages to my car. We were planning on getting rid of it anyway, can I drop the other car and put a new car on the policy? I have an open claim from an accident I reported yesterday. I have another vehicle in mind and can purchase it today, but do not want to get in trouble from my insurance company.
Answer given on February 20, 2012
If you still own the older car, it is not recommended to drop the insurance until you have sold or given it away. If someone wants to test drive it, you need to have insurance on it in the event of an accident. However, there are some insurance companies that will insure the new car and give you up to 30 days to get rid of the older car. That may be the best situation for you. Talk to you agent or insurance company to see if they provide that option.If you still want to drop the insurance, you can drop the insurance on the older car but make sure you cancel it 1 to 2 days after the accident. That way there is no question as to whether the car was insured at the time of the accident. You usually have 5-10 days to report the new car, but in that time the coverage on the new car is the same as the old car. If you want lower deductibles or different coverage, you need to tell your insurance company right away.
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