According to the terms of an Ontario Automobile (OAP 1) Policy if you have a newly acquired vehicle that is replacing one that was previously on your car insurance policy the replacement auto has the same coverage as the described automobile it replaces, as long as you notify the insurer within 14 days of delivery of the new automobile.

A newly acquired additional vehicle will be insured if your insurer currently insures all of the automobiles you own for the same type of coverage on the day you take delivery and you notify the insurer within 14 days of delivery of the new automobile.

A copy of this OAP 1 and its terms can be found on the Financial Services Commission of Ontario (FSCO) website.

Here beyond a chart containing information about the coverages extended to other vehicles it also states that a newly acquired automobile is an automobile or trailer that you acquire as owner and that is not covered under any other policy. It can be either a replacement or an additional automobile.

The replacement automobile will have the same coverage as the described automobile it replaces. We will cover an additional automobile as long as:

• the insurer insures all automobiles you own, and
• any claim you make for the additional automobile is made against a coverage provided for all your other automobiles.

Your newly acquired automobile(s) will be insured as long as you inform the insurer within 14 days from the time of delivery and pay any additional premium required. The insurance provider may inspect the newly acquired vehicle and its equipment at any reasonable time.

Coverage is not extended to a newly acquired automobile if you are in the business of selling automobiles.

Keep in mind that if one vehicle has less coverage than another — for example, if one car does not have Collision insurance — then the coverage on the new vehicle would be the same as the lowest coverage on any existing vehicles. In this example, it would mean there would be no Collision insurance on the new car.

It is best to arrange with your insurance provider for coverage on your new car before you pick it up. Use the automatic coverage only as a safety net if you are unable to reach your insurance provider before you take delivery of the car.

For more information on this topic speak with your agent or contact FSCO.To get a quote for Ontario, Canada car insurance follow this link.