Do most insurance companies do this....

[Mark42]

I called State Farm to insure the new Toyota we bought. Thinking I would end up paying insurance on 3 cars (mine, the old Mountaineer until sold, and the new Toyota), I was surprised to find out that State Farm said if the Toyota is replacing an existing vehicle (the Mountaineer), then the vehicle being replaced gets free coverage for 30 days.

Is this standard practice in the industry or is this a nice perk from State Farm?

Just wondering.

 

[Haut Medoc]

Re: Do most insurance companies do this....

Hmmmmmmm.....
I'm shocked!....
Big insurance will generally rob your eyeballs out any chance they get.......​

 

[Ret USN CPO]

Re: Do most insurance companies do this....

Hmmmmmmm.....
I'm shocked!....
Big insurance will generally rob your eyeballs out any chance they get.......​

Especially State Farm

 

[ricksrster]

Re: Do most insurance companies do this....

Is there the condition you turn the plates in during the 30 days?

 

[Mark42]

Re: Do most insurance companies do this....

Is there the condition you turn the plates in during the 30 days?

No, because you need the plates to drive the car. The whole point of the 30 day coverage is so that you can have the car for sale and let buyers test drive it.

State Farm probably knows that most vehicles being replaced by a new one are not driven much until they are sold or the coverage expires.

 

[rickdb1boat]

Re: Do most insurance companies do this....

There's usually a grace period of 30 days...

 

[Skiuseme]

Re: Do most insurance companies do this....

In Wisconsin the law states that you must notify the insurance company of any new aquired vehicles with a 30 day time span. At that point in time the insurance company will go back to the date that the vehicle was purchased. and charge the back premium. It sounds like to me that the agent is playing a game just to get an edge by not adding the vehicle until the end of the 30 days. The problem is when it comes down to claim time. If the vehicle is not on the policy technicaly there is no coverage. but, on the other hand notifying the Agent is just like calling the company. So if the agent knows the company knows.

I hope this is clear as mud if you have any other questions let me know.

thanks
Adam

 

[QC]

Re: Do most insurance companies do this....

Hmmmmmmm.....

I'm shocked!....

Big insurance will generally rob your eyeballs out any chance they get.......​

Social controversy

 

[suzhol76]

Re: Do most insurance companies do this....

Worked for a State Farm agebt for five years and Im not sure about other states but here in Georgia they used to do this. With all our new insurance laws if you want a tag on the new vehicle you must have your insurance reported over the computer to the state.

 

[Mark42]

Re: Do most insurance companies do this....

It sounds like to me that the agent is playing a game just to get an edge by not adding the vehicle until the end of the 30 days

I don't think so, both vehicles are covered, and they are sending a new ID card for the new car.

 

[Bob_VT]

Re: Do most insurance companies do this....

Nice perk!

 

[aspeck]

Re: Do most insurance companies do this....

Yep, common practice, just not told to many ... as long as I have been selling cars, always told by the agents not to worry about making sure the agent is notified the day of the transaction - there is 30 days of grace to cover ...

 

[orion25]

Re: Do most insurance companies do this....

State farm gave me the same 30 days to sell my old accord. The new cards for the Jeep arrived before the 30 days were up. I also got the insurance binder at the time I told them about the new vehicle.

And to my surprise full coverage on the 2002 Jeep GC was less than liability only on the 1993 Accord......... Something about my 10+ year accident free record.

 

[dolluper]

Re: Do most insurance companies do this....

After 30 days park the truck suv untill sold most companys do the same at least in Canada eh

 

[thefairlaneman]

Re: Do most insurance companies do this....

Most of the time any car you have is legally covered anyway if you have valid insurance on your other cars. This is more of a public relations thing.You have a legal grace period to get all of the paper work done. The insurance company is not spending money to give you anything you didnt already have.I t seems like you just get longer to turn in the plate before they notify the state . In my state you can not own a plate for even a few hours for a car that has no insurance.

 

[SpinnerBait_Nut]

Re: Do most insurance companies do this....

GMAC does it for me.
Oh wait, maybe it's because I spend close to $4300 ever 6 months.

 

[orion25]

Re: Do most insurance companies do this....

GMAC does it for me.
Oh wait, maybe it's because I spend close to $4300 ever 6 months.

You got a few tickets, or a LOT of vehicles? I don't spend that much in a year on my house, cars and boat combined.............

 

[SpinnerBait_Nut]

Re: Do most insurance companies do this....

You got a few tickets, or a LOT of vehicles? I don't spend that much in a year on my house, cars and boat combined.............

Lot's of vehicles.
New Jeep, Van, Truck, Camper, a boat, 3 other vans, wife's van, wife's car, well you get the picture.