You take in the view from afar in person for the first time. It is even more beautiful than in the photos. You are speechless—your heart is beating faster than ever before. You don’t think you will ever be able to relive this moment of pure bliss again. You can’t wait any longer, and you tell the salesperson: “That’s the car for me! I’m buying it!”
You already have an insurance policy for your other vehicle and think that you are automatically insured for your new one. Think again!
Actually, it is possible that you could be automatically insured for your new purchase through the new acquisition clause. This clause provides that, upon the purchase of a new vehicle, said vehicle will instantly have the same coverage as your current vehicle. However, some exceptions may apply, so in those cases you need to be vigilant!
Do you not need to call your broker? At this point, it would be realistic to think that you could wait a few days before calling your insurance broker. However, don’t forget that your policy (here, we are talking about the Q.P.F. #1) provides for a maximum time frame of 14 days to inform your broker following the acquisition of a vehicle. There are exceptions, however.
Two or more automobiles: If you have a more recent vehicle with full coverage and an older vehicle with Section A (civil liability) coverage only, the insurance for your new purchase will automatically be the lesser coverage.
This means that damages due to collision or upset (B2) and all perils other than collision or upset (B3) (such as fire, theft, vandalism, and auto glass breakage) will not be covered. It is important to specify that this condition applies even if your cars are insured through separate insurance policies.
Two or more insurers: If you are already insuring two vehicles through two different insurers, the new acquisition clause cannot apply. You need to have all of your auto insurance policies with the same insurer for this clause to be applicable.
In fact, even if all of your auto insurance policies are through the same broker, but the broker did not place all of your vehicles with the same insurer, the new acquisition clause cannot apply either.
Given the uniqueness of each situation, it is strongly recommended that you contact your insurance broker as soon as you plan to purchase a new vehicle to avoid any unpleasant surprises. Your broker will know how to support you throughout the process to find the best insurance solutions for your needs and help you to avoid driving your new baby illegally (since being in the driver’s seat without auto insurance is illegal!).
