What is typically initiated when a driver purchases a new car under an existing policy?

When a driver purchases a new car under an existing insurance policy, a policy change transaction is typically initiated. This process is essential because it updates the insurance policy to reflect the new vehicle's details, such as its make, model, value, and any specific coverage requirements associated with the new car.

The policy change transaction allows the insured to ensure that their new vehicle is properly covered from the moment it is purchased, providing continuity in coverage without the need to start a completely new policy. It can also involve adjustments to premiums that may occur due to differences in the risk profile of the new vehicle compared to the old one.

In contrast, coverage review pertains to assessing existing policy limits or terms, policy termination would indicate the cancellation of the existing insurance coverage, and the claims process is initiated when a loss has occurred or damage needs to be reported. None of these other processes fit the scenario of simply adding a new car to an existing policy.