How Soon After Buying A Car Do You Need Insurance? (original) (raw)

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10/15/2024 12:00 AM

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In this article, we’ll answer some of the most commonly asked questions about purchasing auto insurance for a new vehicle.

Learn more about the timeline for getting insurance, then take a look at some of the best car insurance companies in the country. If you’re ready to purchase an auto insurance policy now, enter your zip code below to start comparing quotes. We recommend getting at least three quotes so you can compare coverage options and price.

How Soon Do You Need Insurance After Buying A Car?

If you just purchased a car but already have auto insurance on another car, some insurance companies will grant you a grace period of seven to 30 days to add the new car to your policy. During the grace period, your new car will be covered at the same limits as you have on the car that’s currently insured. But not all insurance companies apply this grace period, so it’s important to confirm before you drive the new car.

If you don’t have car insurance coverage already, you’ll need to buy insurance before you can take your new car home. In almost every state, it’s illegal to drive a car without proof of insurance, and the consequences of driving or being involved in an accident without proper insurance can be severe. If you buy a car at the dealership, you’ll typically need to provide proof of insurance before you drive the car off the lot. What’s more, if you’re leasing or financing the new car, your lender will most likely require that you have full coverage–which means a policy that includes liability insurance plus comprehensive and collision.

How Long Is A Car Insurance Grace Period?

When it comes to buying insurance for a new car, most states and insurance companies allow for a grace period–meaning a specific amount of time it’s OK to drive before the car is fully insured.

Grace periods for getting car insurance vary by state and insurance provider and also depend on whether you already have a car insurance policy in place for a different vehicle.

Typically, grace periods range from seven to 30 days, but they can also be as few as two days. Because of this, it’s always a good idea to make sure the new vehicle is insured as soon as possible.

What Is The Penalty For Driving A New Car Without Insurance?

The penalties for driving without insurance vary by state and can be severe, including:

Additionally, if you’re in an accident and don’t have insurance, all the associated costs will be your responsibility to cover. If you don’t have the money to pay for all damages you cause others, you could be sued at which point the total costs of an accident become financially devastating.

So regardless of any grace period available, your best bet is to insure your new car as quickly as possible.

Should You Buy A Car Or Insurance First?

In order to buy a car insurance policy, you need to include details about the vehicle, like the make, model, and VIN. If you have all that info, you can purchase your insurance before you buy the vehicle. If you’re buying a car at a dealership, you can often purchase your insurance simultaneously–the dealer should be able to help you with that.

As noted previously, if you already have insurance on another vehicle, you may be able to simply use that policy to cover the newly purchase car for a limited time. Just be sure to let your insurer know about the new vehicle to ensure your current coverage will apply.

Here are a few more things you should know about insurance when buying a car:Here are a few more things you should know about insurance when buying a car:

When You Already Have Insurance When You Don’t Have Insurance
New Car You have a 7- to 30-day grace period (depending on your state) to add the new vehicle to your existing policy. You will always be required to provide proof of insurance before driving the car off the lot. So you’ll either need to confirm that the new car is covered by your existing policy or buy a separate policy before you can legally drive the new car home.
Used Car If you have all the vehicle info beforehand, you can purchase a policy (or add it to an existing policy) before you pick up the car. Independent sellers don’t usually ask for your insurance information, but driving without the state minimum level of coverage or proof of financial responsibility is illegal.
Financing or Leasing a Car Your lender will require you to have full coverage, which includes liability insurance plus comprehensive and collision. Because lenders want to ensure that their investment is protected, they typically require full coverage and might sometimes require additional coverages, like gap insurance, as well. You’ll need to meet all their specific insurance requirements before taking possession of the vehicle.

How Do I Get Proof Of Insurance Before Buying A Car?

If you already know exactly which car you’re going to buy–and have all the relevant info on hand–you can pre-purchase insurance. We recommend comparison shopping by getting a handful of quotes online to ensure you find the best coverage for your needs.

If you buy a vehicle at a dealership, your sales dealer will be able to help you get car insurance. Because it’s illegal to drive a car off the lot without the proper insurance, dealers are well-equipped to help you find a policy for any vehicle you purchase.

Can You Buy Car Insurance Over The Weekend?

If you’re comfortable with shopping for and managing your car insurance online, you can get a policy anytime you like. Most insurers now make it incredibly simple to do nearly everything you need to on their websites or apps.

This means purchasing a new policy on the weekend can be done in just a few minutes online. If you’re adding the new car to an existing policy, that can typically be done fairly easily online as well. Just log into your current policy and look for a button that says “add another vehicle.”

How Soon After Buying A Car Do You Need Insurance?: Our Take

Even if a grace period is available, we recommend getting insurance as soon as possible after buying a new car. Remember that driving without car insurance can lead to stiff financial penalties and even jail time. Not to mention that you want to make sure your new investment is well protected in the event of an accident. So it’s always a good idea to make sure you have insurance right away to stay protected on the road.

If you’re ready to shop for and compare car insurance quotes, we recommend starting with the providers below.

When shopping for new car insurance, it’s smart to compare quotes. When we researched insurance industry leaders, Progressive and State Farm stood out for extensive coverage and reasonable rates.

Progressive: Best For Usage-Based Insurance

There are many perks to becoming a Progressive customer, like access to the Name Your Price® tool. The tool allows you to start searching for auto insurance with the amount you want to pay, then shows you plans that fit within your budget.

Plus, there’s the usage-based Snapshot® program, which can be a good choice for people who don’t drive very much. According to the Progressive website, drivers save an average of $231 per year using Snapshot.

Read more: Progressive insurance review

State Farm: Best Overall Provider

State Farm is the largest car insurance provider on the market. The insurer has a variety of discounts programs, like Steer Clear® and Drive Safe & Save™. Steer Clear is a driving refresher program that encourages safe driving habits in customers under the age of 25, while Drive Safe & Save monitors driving habits for drivers of all ages to help them save on car insurance.

Along with standard coverage, State Farm has extras like rental and travel expense reimbursement, rideshare coverage, and roadside assistance.

Read more: State Farm insurance review

How Soon After Buying A New Car Do You Need Insurance?: FAQ

Below, we talk about the common questions drivers have about buying insurance after purchasing a car.

Can I drive a car I just bought without plates?

If you have a car without license plates, you’ll have to have it delivered to your house. In most cases, you can’t drive or even park it on a public road until you have registration and insurance. When you purchase a car from a dealership, it will have temporary license plates.

What happens if I’m involved in an accident before I have a chance to notify my insurance company of my new car?

If you’re in an accident before you have a chance to notify your existing insurance company of your new car, you should still be covered up to the same liability limits on your policy, but you should check with your provider before driving the new car.

Is there still a grace period if you buy a car from a private seller?

When you buy a car from an individual, your current auto insurance coverage grace period should apply. You have the same amount of time to notify your provider as if you were buying the car from a dealership, which is usually between seven and 30 days.

What happens if I have a lapse in coverage?

It’s important that you avoid having a lapse in coverage. A lapse in coverage not only leaves you unprotected, but it can also work against you when you’re trying to get coverage later on. Auto insurance companies see a lapse in coverage as a red flag and may increase your rates as a result.

How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

*Data accurate at time of publication.