Newly Acquired Vehicle Coverage

Standard language in most auto policies includes a provision for notification to the company of a newly acquired vehicle. This can be a replacement for a car existing on the policy or it may be an additional car.

It seems that the purpose of the provision is to ensure that the company will accept the risk, i.e. the type of vehicle being added and that the company is able to charge the appropriate rate. Beyond this, is there any other purpose to the provision and how strictly is it typically enforced. Are there circumstances (case studies) that challenge the enforcement of a claim denial based on the provision?

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