Trade in Insurance Coverage

[kirkjufell]

Picking up my MY SR tomorrow and all is on track. However, there is one weird request my SA keeps mentioning. "Please make sure you maintain liability coverage on the car you are trading in until you receive the registration for your new Tesla in about 3 weeks"

I have traded in cars before, and this has never been the case. You just swap the coverage for the day you pick up the new car. Also - I checked with my insurance company (USAA) and they confirmed that since the trade in is no longer in my possession, it can not be covered under my policy. It is the liability of Tesla.

I know there are some nuances with Tesla not being a true car dealer, but this one seems odd. Any one else have this same experience and have advice?

 

[Watts_Up]

As always, only what is written down on a contract has a legal value.
When the car is sold or trade in, well I don't think you might be liable anymore.
But to be safe, at least until when you receive a check, or an amount value, for the older car.

 

[Wilber]

I am picking up an MY SR tomorrow as well. In Marin, Bay Area. Are you in Cal or elsewhere? No one told me anything about keeping coverage on my trade in for three weeks. Sounds strange to me. is there something unusual about your trade in situation that might suggest the three week thing? Or if not in Cal, does your state law cause this three week thing?

 

[kirkjufell]

I am picking up an MY SR tomorrow as well. In Marin, Bay Area. Are you in Cal or elsewhere? No one told me anything about keeping coverage on my trade in for three weeks. Sounds strange to me. is there something unusual about your trade in situation that might suggest the three week thing? Or if not in Cal, does your state law cause this three week thing?

I am in North Carolina. Nothing unusual with the trade - it is a paid off 2018 honda. Title in hand. I have traded in other paid of vehicles in NC and this has never come up. Not sure if it has to do with ensuring I don't get penalized for a gap in coverage? Either way, my insurance company wont do it, so hopefully nothing weird comes up.

 

[Daks]

Seems odd, since they have the keys and you signed trade in paperwork... I also found it odd in the Tesla said they cover the shipping liability insurance, but wouldn't ship it until I put coverage on it. I would do it regardless as the last thing I need is the car to get totaled on it's way to me and there not be insurance on it. I'd really suck paying a ton of money a month and not have the car.

 

[patrick40363]

Picking up my MY SR tomorrow and all is on track. However, there is one weird request my SA keeps mentioning. "Please make sure you maintain liability coverage on the car you are trading in until you receive the registration for your new Tesla in about 3 weeks"

I have traded in cars before, and this has never been the case. You just swap the coverage for the day you pick up the new car. Also - I checked with my insurance company (USAA) and they confirmed that since the trade in is no longer in my possession, it can not be covered under my policy. It is the liability of Tesla.

I know there are some nuances with Tesla not being a true car dealer, but this one seems odd. Any one else have this same experience and have advice?

I think this the case were a Tesla employee gives out the wrong info. Your existing insurance will cover your new car when you drive off. Tesla becomes the owner of your trade in when they get the title and keys from you.

 

[frankvb]

Your existing insurance will cover your new car when you drive off.

Definitely in CA but could be different on other states, where you explicitly need to insure your new car/VIN before taking delivery.