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Most auto policies will provide coverage to a replacement car for a fixed period of time after it is acquired, under the same terms and conditions as the old car. Policies may vary as to how long the coverage will extend, so it is vital that you contact the insurance agent ASAP and notify him/her of the change.

Note also that there also may be a change in premium if you acquire a new car, as it may be "rated" differently from the old car. "Rating" is the process that an insurer uses to determine the premium.

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Q: Do cars purchased from a dealer and taken have insurance before contacting insurance company to change the policy?
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