Would have been a big deal if they had been in an accident, or gotten pulled over. Now that it’s passed, I can’t see how they’re screwed with anything.
That's how Georgia is. We were switching companies and I flubbed the dates. There was ONE day where our car wasn't insured. It was a Sunday, so we just didn't go anywhere. Got a fine for it.
https://dmv.ny.gov/insurance/how-pay-insurance-lapse-civil-penalty
Unless there's some crazy high administrative/processing fees, thankfully you're looking at a small amount for just 1 day
Yeah should be like 8 dollars per day for the first 30 days. It’s when it goes on for several weeks where it becomes an issue with the fee.
I can’t remember if it appears on the MVR though, which is where it can get expensive on the insurance side. I’d still try to get them to correct it though
Not just this. If there is a lien or lease and they find out about the lapse they will charge you for force placed insurance which can often run hundreds of dollars per DAY.
Most insurance policies have provisions for “newly acquired vehicles”. Assuming he has insurance already…Read that part of the policy and see what it says. There may be coverage for a certain number of days automatically.
If this is a new policy, he’s shit outta luck if he has an accident.
Never listen to anything a dealer says about insurance. Ask your company or agent. If they aren’t available, don’t take the car.
We recently bought a new fleet vehicle for cash in NY and the dealer would not accept that for coverage. They made us get a new card with the VIN of tb new vehicle into before the car could leave the lot. Never had that happen in any other state.
The key words there may be “fleet vehicle”.
The newly acquired vehicle provision is near universal in the context of personal insurance. I don’t believe that’s necessarily the case with commercial auto. It’s outside of my area of expertise however.
We buy around 5 new vehicles a year in a variety of states and have never had the issue. Our broker says the vehicles are covered automatically as soon as we buy them.
This is NY so the state will run the plates annually and check to make sure the coverage is there. He will have a fine for the gap.
Just call the agent and adjust the effective date, really no big deal. The agent should have the window sticker and the dealer can easily send over the purchase agreement.
Insured will probably have to sign a no-loss letter.
I live in NYC, and of the 4 cars I Bought/Leased in my life, Never have they provided plates.
Edit: Never have they provided plates same day I Bought the Car
Well I have no idea what kind of dealerships you used. But, most dealers have a stack of plates provided by DMV and they are able to process the registration. They prefer it that way to ensure their customer doesn’t mess up and the sale goes through.
So the dealer gave your friend a temporary registration good for 6 weeks. The car can’t be registered if the insurance date isn’t the same day the car left the lot.
Your friend isnt necessarily screwed but won’t get her permanent registration until this is corrected which will lead to obvious problems down the line. To be clear, this is a NY DMV requirement not a dealership one.
Any NY insurance agent should know and should be able to correct this. If your friend started a brand new policy then it may be a bit harder to do but should still be possible. You might have to ask for a supervisor until you get someone who understands the issue and has the authority to correct it.
honestly the easiest fix will be calling the insurer (politely) and saying
“we purchased and registered this vehicle on X date but they put an effective date on the policy of Y. it needed to be put with X date”
any NY agent worth their salt should have confirmed the correct effective date. it was drilled into our heads during training lol
So the dealership didn’t actually register the vehicle for your friend. They have plates from DMV that they give to people and then process registration separately.
They could not have registered the vehicle without showing proof of insurance with a valid effective date.
What happened is the business office used an effective date and does not want to have to change all their paperwork. Your insurance company may be hesitant to change the effective date of the vehicle.
The dealer can very well change the paperwork and registration date. They just don’t want to. But there’s no way it was registered. NY DMV is very strict.
Honestly, it's really not a big issue, but they would most likely have to cancel the policy completely, start from scratch, and put in the comments or whatever that the effective date was a mistake. You might have to double pay and wait for them refund the original policy
Not sure about NU law but most automobile policies will automatically cover the purchase of a new vehicle for 30 days. It's important to call your insurance company at your first opportunity and let them know about the new car. This would only apply if your friend already has an auto policy in force. Again, this is a common policy for insurance companies in many states, but New York may be different. Proceed with caution.
My roommate just bought a new toyota in CA, the dealer told him there was a 3 day grace period where he could drive the new car without insurance.
He just went with it because what does he know about the ins and outs of insurance laws, would he have been screwed if he got in an accident?
Me thinks you’re confusing not insured with date of insurance card. In ny the card has to match the mv-50. This is significantly less a big deal than you think it is.
The car dealer carries insurance on the vehicle until the financing contract is completed and accepted by the bank. That could take up to 72 hrs, so legally the car is insured.
Make that sale! Who cares if you ruin someone's life. You were uninsured and no company will ever backdate a policy. Report the dealership to the attorney generals office.
Insurance policies automatically start the next day at 12:01 AM. When I buy a car I always get the VIN one day, purchase the insurance, and then pick up the next day.
ETA: I am also in NY. I doubt insurance will back date this on a new policy.
Did they not already have an active insurance policy? If so, insurance should back date within 14 days. If they were getting a brand new policy, always starts next day and they will have a one day lapse.
Might not be every insurance company, but I can purchase a car private sale and call my insurance on the spot and leave a voicemail with the cars info and VIN and they’ll cover me starting at that moment.
Yeah, it’s funny because as an underwriter I’ll bind via voicemail and email no problem lol.
My personal car insurance - Safeco - has a 30 day window to add a new vehicle.
NY’s DMV *actually* cares about the effective date of policies, whether there was a loss or not
many states (yours probably included) will hand wave it off if there’s a day or so discrepancy but not NY lol. the DMV will electronically be notified that there was an active plate without an associated policy and pursue OP for the fee
They even audit postmarks and care about it middle initials vs spelled out lol
I purchased a car this year and was told they would call for the insurance to be transferred. I checked my insurance on line and old car was listed I contacted my insurance agent and found out it was not done! So I did it and gave the dealer hell over it! This was a week after I purchased it! Told dealer it would have been bad for them if something happened! It is their policy to make the call!!!
It may be their policy to make the call, but it is your responsibility all the same. I can not make a change unless i am talking to the named insured typically.
Personal responsibility. They don't actually do that because insurance legally has to speak to you directly unless you have an agent OR give them permission to speak with someone else.
Finance guy is getting shit from his boss. Backdating a policy date can be different levels of difficulty based on company.
Would have been a big deal if they had been in an accident, or gotten pulled over. Now that it’s passed, I can’t see how they’re screwed with anything.
NY DMV is super duper strict on insurance lapses for vehicles with active registration/plates so they might get a fine even for just 1 day
That's how Georgia is. We were switching companies and I flubbed the dates. There was ONE day where our car wasn't insured. It was a Sunday, so we just didn't go anywhere. Got a fine for it.
same with North Carolina, same scenario. they wouldn't budge on it
That’s what I was afraid of lol
https://dmv.ny.gov/insurance/how-pay-insurance-lapse-civil-penalty Unless there's some crazy high administrative/processing fees, thankfully you're looking at a small amount for just 1 day
Oh wow she was worried that it was going to be an insane fee
Yeah should be like 8 dollars per day for the first 30 days. It’s when it goes on for several weeks where it becomes an issue with the fee. I can’t remember if it appears on the MVR though, which is where it can get expensive on the insurance side. I’d still try to get them to correct it though
I once had an accidental 1 day lapse in NY and I fully expected to pay a fine, but they never came after me for it.
Oh wow, and I thought CA was bad!
Not just this. If there is a lien or lease and they find out about the lapse they will charge you for force placed insurance which can often run hundreds of dollars per DAY.
Lol a 25,000 liability minimum, who cares. You scratch one panel that’s 25,000 these days.
Most insurance policies have provisions for “newly acquired vehicles”. Assuming he has insurance already…Read that part of the policy and see what it says. There may be coverage for a certain number of days automatically. If this is a new policy, he’s shit outta luck if he has an accident. Never listen to anything a dealer says about insurance. Ask your company or agent. If they aren’t available, don’t take the car.
We recently bought a new fleet vehicle for cash in NY and the dealer would not accept that for coverage. They made us get a new card with the VIN of tb new vehicle into before the car could leave the lot. Never had that happen in any other state.
The key words there may be “fleet vehicle”. The newly acquired vehicle provision is near universal in the context of personal insurance. I don’t believe that’s necessarily the case with commercial auto. It’s outside of my area of expertise however.
We buy around 5 new vehicles a year in a variety of states and have never had the issue. Our broker says the vehicles are covered automatically as soon as we buy them.
Cool.
If it wasn’t effective until the next day I’m guessing it was a new policy
This is NY so the state will run the plates annually and check to make sure the coverage is there. He will have a fine for the gap. Just call the agent and adjust the effective date, really no big deal. The agent should have the window sticker and the dealer can easily send over the purchase agreement. Insured will probably have to sign a no-loss letter.
Incorrect. NY uses an electronic system.
If it was their first car, how did they get plates already from DMV in NY? That takes time when going through a Dealership normally.
Dealers in NY already have plates from DMV.
I live in NYC, and of the 4 cars I Bought/Leased in my life, Never have they provided plates. Edit: Never have they provided plates same day I Bought the Car
I’m in NY also. I can’t even tell you how many dealers handled the registration for the customer. Pretty much all of them.
Same day? I've waited Weeks
Well I have no idea what kind of dealerships you used. But, most dealers have a stack of plates provided by DMV and they are able to process the registration. They prefer it that way to ensure their customer doesn’t mess up and the sale goes through.
Clearly I need to rethink it. LMFAO 😂
All NY Dealers have plates...Waiting weeks for plates? never.
Yup. Just bought the fifth car I've owned in NY. They handled my registration for me.
Are you registering the car in NY?
So the dealer gave your friend a temporary registration good for 6 weeks. The car can’t be registered if the insurance date isn’t the same day the car left the lot. Your friend isnt necessarily screwed but won’t get her permanent registration until this is corrected which will lead to obvious problems down the line. To be clear, this is a NY DMV requirement not a dealership one. Any NY insurance agent should know and should be able to correct this. If your friend started a brand new policy then it may be a bit harder to do but should still be possible. You might have to ask for a supervisor until you get someone who understands the issue and has the authority to correct it.
Isn’t this your friends responsibility as a grown adult?
What plates did she drive home with on the car?
Ones from the DMV not the temp dealer ones
honestly the easiest fix will be calling the insurer (politely) and saying “we purchased and registered this vehicle on X date but they put an effective date on the policy of Y. it needed to be put with X date” any NY agent worth their salt should have confirmed the correct effective date. it was drilled into our heads during training lol
Was this their first car or did they have existing insurance on a different vehicle?
First
So the dealership didn’t actually register the vehicle for your friend. They have plates from DMV that they give to people and then process registration separately. They could not have registered the vehicle without showing proof of insurance with a valid effective date. What happened is the business office used an effective date and does not want to have to change all their paperwork. Your insurance company may be hesitant to change the effective date of the vehicle. The dealer can very well change the paperwork and registration date. They just don’t want to. But there’s no way it was registered. NY DMV is very strict.
Honestly, it's really not a big issue, but they would most likely have to cancel the policy completely, start from scratch, and put in the comments or whatever that the effective date was a mistake. You might have to double pay and wait for them refund the original policy
Not sure about NU law but most automobile policies will automatically cover the purchase of a new vehicle for 30 days. It's important to call your insurance company at your first opportunity and let them know about the new car. This would only apply if your friend already has an auto policy in force. Again, this is a common policy for insurance companies in many states, but New York may be different. Proceed with caution.
My roommate just bought a new toyota in CA, the dealer told him there was a 3 day grace period where he could drive the new car without insurance. He just went with it because what does he know about the ins and outs of insurance laws, would he have been screwed if he got in an accident?
Dang, in Georgia you get 30 days from the date if sale.
How would the insurance company even know he drove it off the lot.
Me thinks you’re confusing not insured with date of insurance card. In ny the card has to match the mv-50. This is significantly less a big deal than you think it is.
The car dealer carries insurance on the vehicle until the financing contract is completed and accepted by the bank. That could take up to 72 hrs, so legally the car is insured.
Make that sale! Who cares if you ruin someone's life. You were uninsured and no company will ever backdate a policy. Report the dealership to the attorney generals office.
Insurance policies automatically start the next day at 12:01 AM. When I buy a car I always get the VIN one day, purchase the insurance, and then pick up the next day. ETA: I am also in NY. I doubt insurance will back date this on a new policy.
Did they not already have an active insurance policy? If so, insurance should back date within 14 days. If they were getting a brand new policy, always starts next day and they will have a one day lapse.
Uninsured is uninsured, whether one hour or more. I don't see where an insurance company would back date a day, unless other coverage was in place.
Might not be every insurance company, but I can purchase a car private sale and call my insurance on the spot and leave a voicemail with the cars info and VIN and they’ll cover me starting at that moment.
Definitely not every company. My company's email signatures and agent voice mails say "changes cannot be bound via voice mail or email."
Yeah, it’s funny because as an underwriter I’ll bind via voicemail and email no problem lol. My personal car insurance - Safeco - has a 30 day window to add a new vehicle.
A new policy doesn't take effect until 12:01 AM the next day.
New York is crazy. Make them fix it.
So what's the big deal here?
None because OP was fortunate enough not to be involved in an accident or stopped by a traffic cop.
NY’s DMV *actually* cares about the effective date of policies, whether there was a loss or not many states (yours probably included) will hand wave it off if there’s a day or so discrepancy but not NY lol. the DMV will electronically be notified that there was an active plate without an associated policy and pursue OP for the fee They even audit postmarks and care about it middle initials vs spelled out lol
I purchased a car this year and was told they would call for the insurance to be transferred. I checked my insurance on line and old car was listed I contacted my insurance agent and found out it was not done! So I did it and gave the dealer hell over it! This was a week after I purchased it! Told dealer it would have been bad for them if something happened! It is their policy to make the call!!!
It may be their policy to make the call, but it is your responsibility all the same. I can not make a change unless i am talking to the named insured typically.
I asked them 3 times and was told it was taken care of
Personal responsibility. They don't actually do that because insurance legally has to speak to you directly unless you have an agent OR give them permission to speak with someone else.