Car Insurance in Alberta: 3 Excellent Reasons to Notify Your Insurer of New Vehicle Ownership
Car insurance is a necessity, it’s part of what makes you a responsible driver. Financially speaking, it will protect and safeguard you against bodily harm, damage to your vehicle, as well as other liabilities that come from accidents or collisions.
For this reason, it’s important that you inform your insurance provider upon attaining a new vehicle in Alberta.
However, if you’re unfamiliar with this process, don’t fret. Because in this article, we will cover how you can transfer your insurance to a new vehicle.
1. Your Insurer Will Have a Grace Period
Getting down to brass tacks here, once you have obtained ownership of a new vehicle, it is your responsibility to inform your insurance provider as soon as possible. This is important because a new car could affect the terms of your insurance coverage.
If you happen to have any qualms about your coverage being revoked once you get your new car, you can rest easy. Generally speaking, a little leeway is provided by insurance companies in such situations. They will typically provide a grace period of about two weeks or so (depending on who you’re with), to allow for all the details of the registration to be properly processed.
But the important component here is that you notify them promptly. Whenever changes occur that might impact the terms and conditions of your policy, get in touch with your insurance provider. Some of these changes might include:
- Change of residence
- Change of vehicle
- Updated change to marital status
2. You Could Lose Coverage
In Alberta, failing to inform your insurer about any changes in vehicle ownership — within a sensible time period — could result in loss of coverage should an accident occur.
For example, if you failed to notify your insurance company within their grace period (however long it happens to be), and you got into an accident a short while after the grace period expired, your insurer has every right to deny your claim and refuse the payout.
3. There Are Advantages to Notifying Your Insurance Provider
With insurance companies, premiums are tabulated on several considerations. The type of car you drive, the year, the make and model, etc, are all taken into account. Additionally, insurers think of other elements such as:
- The amount of horsepower
- The ratings for safety
- Medium repair price range
- Rates for theft
- The vehicle’s track record for claims
When it comes to car insurance, the fact of the matter is some cars are cheap, and others are more expensive. What this entails is that depending on the car you select as your replacement vehicle, your insurance rates may be reduced. For instance, common knowledge says insurance for newer cars would be more expensive than older ones. However, that’s not always the case, if the new car in question has a higher safety rating than the older one, then you would have a lower premium on the new vehicle.
At the end of the day, many factors will affect the terms, conditions, as well as insurance rate of your vehicle. So be vigilant about the type of car you choose.
But with all that being said, it would be prudent of you to inform your insurance company when your vehicle ownership has changed in Alberta. The reason being is that this will guarantee that you’ll have continued coverage on the road.
Comments are closed.