If you don’t already have a car insurance policy, you’re legally required to purchase one for any car you buy before driving off the lot. But if you already carry insurance for another vehicle, you may be entitled to a grace period of up to 30 days before you’ll need to add your new car to your insurance.
What is a new car insurance grace period?
When you purchase a new car, you need insurance for your vehicle as well. While it’s a great idea to purchase insurance before heading to the dealership, some drivers who already carry insurance may qualify for a grace period of up to 30 days, during which they can legally drive their new vehicle without purchasing a new policy.
To qualify for a new car insurance grace period, you must have an existing policy with an insurance company that offers this option. If your insurance provider offers a grace period, you’ll have until the end of that period of time to transfer your policy to a new vehicle.
While a grace period is convenient, don’t rely too heavily on this temporary coverage. Register your new vehicle under your policy or find new coverage as soon as possible to avoid getting limited coverage or, worse, an unintentional coverage lapse.
Which car insurance companies offer a new car grace period?
Most insurance providers offer a new car grace period of some kind, although the terms of this grace period will vary depending on the insurance company.
Here are some examples of grace periods offered by different car insurance providers, along with the average annual rate to insure two vehicles with full coverage and Jerry’s ratings of each company.
| Insurance company | Grace period |
|---|---|
| State Farm | Averages 10 days (actual grace periods vary by state) |
| Progressive | 30 days |
| Allstate | Between 7 and 30 days |
| Travelers | Unspecified |
| Nationwide | From 24 hours to 14 days |
| Farmers | Up to 30 days |
| Liberty Mutual | Between 7 and 30 days |
| GEICO | Up to 30 days |
Even if you don’t see your provider on this list, they may offer a grace period of some kind. Contact your insurance agent to learn more about your options.
What type of coverage will you have during a new car insurance grace period?
Most grace period insurance will cover your new car under the highest level of coverage your current policy contains—meaning that if you have a full coverage policy with collision coverage and comprehensive coverage, your new vehicle will be protected with the same coverage limits and deductible.
However, this means the inverse is also true. If your policy is a state minimum liability coverage-only policy, that’s the only protection you’ll get for your new vehicle, too. Sometimes, liability insurance (including both property damage liability and bodily injury liability) won’t apply to your new vehicle at all, leaving you uninsured in the event of an at-fault car accident.
Read your policy details carefully to ensure you understand your coverage during a new car insurance grace period.
What happens if you don’t get insurance coverage before your grace period ends?
If you fail to officially add your car to your policy before your grace period ends, you’ll experience an insurance lapse, which will go on your record and make it very difficult for you to find cheap car insurance in the future. The longer your insurance lapse, the higher your insurance rates will be—though any lapse at all results in a higher insurance premium.
What happens if you get into an accident during your new car insurance grace period?
If you get into a car accident while relying on your new car insurance grace period, you should always contact your insurance provider first. During your grace period, the insurance claims process should be similar to standard procedure.
You may also be asked to present proof of insurance following a car accident, so be sure to carry your insurance card for your current auto insurance policy in your new vehicle, just like you would in your existing car.
FAQ
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Can you buy a new car without insurance?
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Is minimum coverage a bad idea for a new car?
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Can you shop for a new policy during your grace period?
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Do all insurance policies have a 30-day grace period?
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Is gap insurance required for new cars?
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
