Image result for GIFTING a car for christmasHave you ever dreamed of surprising your mom or spouse with a new car for Christmas?  Gifting a vehicle to a loved one may not be as easy as we see in commercials.  There are things you need to do and know before you drive off with the biggest Christmas present EVER. 

First, make sure you choose the right car for the person receiving it.  Do not purchase a vehicle that you see yourself driving such as a convertible on a beautiful sunny day.  In most cases, you cannot return a new car purchase and not to mention that disappointed look on their face Christmas morning.  Second, have a titling and finance strategy before you show up to the dealership.  You may want the vehicle to be put in your loved one’s name but that may not be possible.  You cannot buy a car in someone else’s name without the other person present to sign paperwork.  Be prepared to buy it yourself and perhaps return after to have your loved one as a co-signer on the vehicle.  And lastly, do tell the dealership you plan on surprising someone with a new vehicle.  This way the salesperson will have an idea of what to do when it is time for titling and financing.

Insurance Strategies for Gifting a Vehicle

  • Adding the vehicle to your current policy.  Sometimes the easiest part of surprising a loved one with a vehicle is getting insurance.  It is simple because you may already have an insurance policy in place.  So all you may need to do is call your agent, choose your coverage, send pictures and your vehicle gets added to your policy.  Make sure to get a car insurance quote for the new vehicle before you purchase it.  You do not want to be the one surprised over the cost of insurance for the gifted vehicle.
  • Check your policy for automatic coverage.  Get with your agent and review your vehicle policy to find if it contains a clause for additional vehicle purchases.  Depending on the insurer, when you purchase a new vehicle you may have 14 to 30 days of automatic coverage on a newly acquired vehicle.  Find out from your agent if you have automatic coverage otherwise you are unintentionally driving without insurance if vehicle is not added to a policy right away.  Also, make sure you have the coverage you need as many lenders require financed vehicles to carry comprehensive and collision coverage.
  • Bind the policy but set a later effective date.  You can have your agent start the new policy on a later date for coverage to start.  Get with your lender to make sure this is allowed as many want coverage before vehicle leaves the lot.

Contact us today at any of our offices to give you a free auto insurance quote for that surprise vehicle or for any of your vehicles.