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Navigating the Ins and Outs of Buying a New Car

By August 8, 2023September 20th, 2023No Comments

Welcome back to the Patriotic Insurance Group blog! Today, we are going to delve into an important aspect of buying a new car that often goes unnoticed – the decision to get new license plates or transfer the existing ones. Understanding the implications of this choice is crucial for both insurance agencies and car buyers. In this article, we will discuss the differences between getting new plates and transferring old ones, as well as the necessary steps to ensure a smooth insurance transition. So, let’s buckle up and get started!

When Buying a New Car, You Have a Choice:
When you decide to purchase a new car, you are faced with the dilemma of whether to get new license plates or transfer the existing ones. It’s a decision that may seem minor, but it can have significant implications for your insurance policy. This is one of the first things you must tell your insurance agent when adding a new car to your policy. 

Getting New Plates:
If you opt for new plates, the car dealer will handle the process of putting them on your vehicle. However, it is essential to remember that as the client, you bear the responsibility of returning the old plates to the Department of Motor Vehicles (DMV). To do this, you will need to obtain a plate surrender form from the DMV and send it to your insurance agency, ensuring that the car is promptly removed from your policy. Without this plate surrender form the vehicle cannot be removed from your policy.

Transferring Plates:
On the other hand, if you choose to transfer your existing plates to your new car, the insurance agency will handle the transaction. In this case, your insurance ID card will indicate “replacement.” This signifies that the plates have been transferred, and the new car will be covered under your existing policy.

Understanding the DMV Perspective:
The DMV of New York State views insurance as being tied to license plates rather than the vehicle itself. Therefore, it is crucial for insurance agencies to be aware of the status of your plates to ensure accurate coverage. Whether you get new plates or transfer existing ones, it is essential to communicate this information clearly to your insurance agency to avoid any potential gaps in coverage.

The Importance of the ID Card:
When buying a new car, the ID card provided by your insurance agency plays a vital role. The ID card should clearly indicate whether it is a replacement or not. This distinction is critical for the car dealer, as it informs them whether the car comes with new plates or if the existing plates have been transferred. By ensuring that the ID card accurately reflects the nature of the transaction, you can avoid any confusion or misunderstandings during the car buying process.

Buying a new car is an exciting experience, but it also comes with several important considerations. One such consideration is whether to get new license plates or transfer the existing ones. By understanding the implications of this decision and communicating it effectively to your insurance agency, you can ensure a seamless transition in your insurance coverage. Remember, whether you choose new plates or transferring existing ones, keeping your insurance agency informed is crucial to maintaining comprehensive coverage for your new car. Safe travels!