State Farm Auto Insurance Practice Test

What must a policyholder do to cover a newly acquired car under their existing policy?

1. Notify the insurance company within 30 days

2. Provide proof of previous insurance

3. Report the vehicle's VIN immediately

4. Inform the insurer within 14 days of its delivery

The correct answer is: Inform the insurer within 14 days of its delivery

To cover a newly acquired car under an existing auto insurance policy, the policyholder must inform the insurer within 14 days of its delivery. This timeframe allows the insurance company to add the new vehicle to the existing policy seamlessly, ensuring that coverage is both current and effective without any lapse. Notifying the insurer quickly is crucial because it helps maintain continuous coverage and protects the policyholder against potential liabilities that can arise from accidents or damages involving the newly acquired vehicle. This requirement reflects the general practice within the industry for timely updates regarding changes in a policyholder's vehicle inventory, underscoring the importance of staying proactive in insurance management. The other options, while they may involve aspects of the process, do not accurately represent the key action required for coverage initiation. Policies differ by provider, but the most commonly accepted practice is to inform the insurer shortly after acquiring a new vehicle to ensure uninterrupted protection.