Texas Property and Casualty License Practice Exam

How long is newly acquired vehicle automatic coverage provided for if the insured has comprehensive and collision?

1. 10 days

2. 14 days

3. 30 days

4. 7 days

The correct answer is: 14 days

When an insured has comprehensive and collision coverage, the automatic coverage for a newly acquired vehicle typically lasts for a specific period. In Texas, this duration is 14 days. During this time, the insured is covered for damage to the new vehicle under the terms of the existing policy without the need to add the new vehicle immediately. This automatic coverage allows policyholders to not worry about immediate actions after purchasing a new vehicle, providing them with a grace period to notify their insurance company and ensure continuous protection. It's important for policyholders to understand that these provisions apply only if the existing coverage includes comprehensive and collision; otherwise, they may need to seek additional coverage or follow different guidelines based on their policy terms.