State Farm Auto Insurance Practice Test

What action should be taken if a policyholder has purchased a new vehicle?

1. Immediately close the existing policy

2. Request the vehicle identification number (VIN) to complete the change

3. Notify all other drivers instantly

4. Change the mailing address

The correct answer is: Request the vehicle identification number (VIN) to complete the change

When a policyholder purchases a new vehicle, it is essential to request the vehicle identification number (VIN) to complete the change. The VIN is a unique code that identifies the specific vehicle and includes information about the make, model, year, and place of manufacture. This information is crucial for updating the insurance policy to ensure proper coverage for the new vehicle. Without the VIN, the insurance company cannot accurately assess the risks associated with the new vehicle or provide the appropriate coverage. The policyholder should communicate this information to their insurance agent or company to ensure that the policy reflects the new vehicle correctly and that coverage begins promptly. The other options do not adequately address the necessary steps for updating the insurance for a new vehicle. Closing the existing policy may be premature without ensuring that the new vehicle's coverage is in place, notifying all other drivers is not a standard requirement, and changing the mailing address does not relate to the new vehicle acquisition process.