Can I change insurance on a Financed Car 2024?

Can you change insurance on a financed car? When you buy a financed car, it is common to wonder if you can change insurance. The answer is yes, it is possible, but there are certain important aspects and considerations to take into account before making that decision. In this article, we will explore the possibility of changing insurance on a financed car and what factors you should consider.

You do not always have the opportunity or the financial solvency to pay cash for an asset, much less a car, although the prices and facilities for paying it off may vary, it is common for people to opt for financing. That way they can better cover the debt and organize their expenses.

It is very common that when looking for car options at an agency, they offer promotions with the contracting of your car insurance through the insurer with which they currently have an agreement, such as: “free first year of insurance”, and special prices , among others.

It is worth mentioning that CONDUSEF in recent years has reported that buyers have the power to choose the insurance company of their choice. The only condition is that they must meet certain requirements and deliver them promptly.

It is essential that when you go to pick up the means of transport you already have the registration or do it immediately since it is a guarantee of protection for the company in the case for some reason you do not finish paying for it and return it.

At Ahorra Seguros we are interested in always keeping you informed about everything that has to do with your car, that way you will not have problems using it correctly and, above all, to always keep you and your loved ones safe.

Can I change the Financed Auto Insurance I just purchased?

If your credit has already been authorized, and therefore you have already signed a contract to have your vehicle delivered, most likely you will not be able to make the insurance change. You should review this because within this document the car insurance that you will have in force for at least one year is stipulated.

You must know what the terms and conditions of your policy are, to know the essential points that you should pay attention to. If you have never hired a protection service for your car, you have nothing to worry about, below we tell you which areas you should pay attention to.

Review the validity of the policy and verify if the renewal is automatic or manual

Once you review all these sections, especially the conditions that make up your insurance policy, you will be able to determine its validity and if it is a mandatory issue.

The good news is that for the financial company that authorized your automobile loan, the last thing you want is a loss, which is why it is most likely that your contract has extensive coverage that will allow you to have total protection.

If, on the other hand, you have not yet signed your contract, you have every right and support from CONDUSEF not to accept the insurance that the agency recommends, but remember that taking out car insurance is necessary.

How to change my Financed car insurance?

1. Financing Contract:
   Before making any changes to your insurance, it is crucial to carefully review your financing contract. Some financial institutions have specific requirements about the type of insurance coverage you must have. Some contracts may even specify the need for certain coverages, such as comprehensive and collision coverage, to protect the value of the vehicle they are financing.
2. Mandatory Coverages:
   Make sure you know what insurance coverages are required by local laws and lender requirements. You may need to maintain certain levels of coverage to meet the terms of your financing contract. These coverages typically include liability, comprehensive coverage, and collision coverage.
3. Notification to Lender:
   Before making any changes to your insurance policy, it is advisable to notify your lender. Some financial institutions may require specific information about your new policy, such as the name of the insurance company, coverage limits, and contact details. Failure to notify could result in consequences, such as the imposition of forced insurance by the lender.
4. Car Value and Deductibles:
   When changing insurance, it is important to consider the current value of your car and the deductibles associated with the new policy. If you choose a higher deductible, you could save on monthly premiums, but you should also be prepared to cover a higher cost in the event of claims.
5. Comparison of Quotes:
   Before making the change, it is advisable to obtain quotes from several insurance companies. Compare rates, coverages, and customer reviews to ensure you’re making the best decision in terms of quality and price.

When can I change insurance on a Financed Car?

To change the financed car insurance you must wait until the validity of your policy expires, which is 1 year. To do this, remember to avoid automatic renewal at all costs so that one month before the end of the contract period you can request cancellation.

Before making this decision, we recommend that you investigate and learn more options. If you prefer, you can also visit our insurance comparator and determine which is the most optimal option. In any case, it is an obligation for all drivers and is part of the important vehicle procedures.

Even the Government of Mexico determined that it is an essential requirement to circulate, otherwise, you could be imposed one of the many traffic fines.

In Mexico there are more than 20 insurance companies available, through the Ahorra Seguros quote you can find different company options. There you can quote, compare, and contract your policy in less than 10 seconds.

How do I know if I should change my financed auto insurance or not?

If the car insurance offer on the market offers you better prices, coverage, and benefits than the insurance offered by your agency, it is time to change the financed car insurance!

This is where the importance of comparing different protection options lies, but what should be taken into account when contracting insurance?

Each of the companies offers various services, for example, Quálitas comprehensive coverage will not cover the same as Banorte comprehensive coverage or AIG protection.

When researching and learning about insurance options consider:

• Coverage: Currently in the car insurance market there are at least three types of 
• coverage available: Comprehensive, Limited, and Basic. Each offers benefits such as third-party damage insurance, coverage against theft, material damage, road assistance, among others. As it is a financed vehicle, you should choose comprehensive coverage as you will be protected against almost any risk.
• Insured sums: These indicate the maximum amount that the insurer will pay for the expenses generated in an accident, normally applied to medical expenses, damages to third parties, or material damages.
• Deductibles: It is a fixed percentage that as an insured you must pay for each event that is related to a theft or material damage, this amount as such is fixed and calculated based on the commercial, agreed, or invoice value of your car, in the case of cars. new, the most common thing is that it is for invoice value
• Premium: This is the cost of your car insurance; it can be paid in full or in installments. The value of the premium is defined based on the amounts and percentages of the previous concepts, the advantage is that you can customize them to create a plan accessible to your budget

What requirements do I need to cover to change my Financed Auto Insurance?

As it is a financed vehicle, the company that provided the service must agree with the new auto insurance policy that you contract. That is why to make this change you must meet the following requirements:

• Your policy must have coverage for total theft and material damage. If your car has special equipment from the agency, it is important that you also insure it.
• The insured amount must be the invoice value if your car is new or commercial value if it is pre-owned.
• The contract must have the legend “Non-Cancelable”, that is, you will not be able to terminate the contract during its validity. This is a way for the finance company to ensure that the vehicle will be insured at all times.
• You must list the company that financed your purchase as the preferred beneficiary. The initial owner of the car is this same financial company until said debt is settled, until then, the car will be legally yours
• The validity of your policy must cover the entire financing period
• Present your proof of payment of your car insurance premium in this way to verify that it is already valid and that you will be ready to drive

How to change Financed Auto Insurance?

Once all the previous points have been met, you must present all the documentation with the financial agent, that is, the cover of the comprehensive coverage policy, proof of payment, as well as the characteristics of the contract.

And that’s it, your vehicle will have auto insurance to your liking.

What are the consequences of not paying my Financed Auto Insurance?

If you do not pay your car insurance on time you will have consequences such as fines or penalties that will affect you in the short term, in addition to being left unprotected in risk situations such as theft or material damage.

The idea is to keep your policy payments in order at all times to avoid any type of complication.

Is it legal for me to get my Auto Insurance Conditioned at the Agency?

According to the warnings, as well as the points established by Condusef, everything related to Financed Auto Insurance goes hand in hand with all the regulations that are stipulated for these policies.

It is taken into account that the user is free to choose the insurer that best suits him or her. What you have to take into account is that taking out car insurance is mandatory. Remember that the company you hire must be backed by the CNSF.

In this sense, the restrictions on can I change my financed auto insurance? They go hand in hand with points that can be followed. For you to obtain the protection you want in your vehicle, all points must be taken into account.

It is important to mention that the seller will not be able to force you to contract the Financed Auto Insurance that is offered to you directly by the institutions. Therefore, you have the option to purchase through any intermediary, as well as quote, compare, and choose the coverage that best suits you and the insurer you want.

Before changing financed car insurance, it is recommended that you make some comparisons before accepting this term. Take into account the risks that are covered, as well as the sums and compensation that will be given to you in the event of being involved in an accident.

Advantages and Disadvantages of contracting Auto Insurance with the Financing Agency

Many of the institutions dedicated to the sale of vehicles under the financing concept usually offer Financed Auto Insurance as one of the benefits for you to purchase your car.

The convenience goes hand in hand with the procedures that the agency saves you since it is also known as a tied sale. It is worth mentioning that currently there are just over 1,800 automotive agencies that remain registered with the AMDA.

Finance companies include these services in the sale of their cars, recommending the client, to avoid problems. If you are already about to change your insurance for a financed car, quote, compare, and contract your policy through Ahorraseguros.m x.