{"id":5309,"date":"2024-11-07T23:55:08","date_gmt":"2024-11-08T07:55:08","guid":{"rendered":"\/wp-site\/?p=5309"},"modified":"2025-03-07T15:23:08","modified_gmt":"2025-03-07T23:23:08","slug":"new-car-insurance-grace-period","status":"publish","type":"car-insurance","link":"https:\/\/jerry.ai\/car-insurance\/new-car-insurance-grace-period\/","title":{"rendered":"What is a New Car Insurance Grace Period?"},"content":{"rendered":"\n

If you don\u2019t already have a car insurance<\/a> policy, you\u2019re 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 must add your new car to your insurance.<\/p>\n\n\n\n

How new car grace periods work for insurance<\/h2>\n\n\n\n

A new car auto insurance grace period allows you to update your policy information after purchasing a vehicle without interruption of coverage. That way, if you’re already covered, all you have to do is worry about buying the car \u2014 for now.<\/p>\n\n\n\n

While it\u2019s a great idea to purchase insurance before heading to the dealership<\/a>, some insurance companies allow you to legally drive your new vehicle for up to 30 days without updating your auto policy.<\/p>\n\n\n\n

Your new car will only be covered by the type of coverage you already have, so while a grace period is convenient, don\u2019t rely too heavily on this temporary coverage. Register your new vehicle and cover it under your policy or find new coverage as soon as possible to avoid an unintentional coverage lapse. Buying a car is a smart time to shop around for car insurance quotes to see what kind of rates you can get for your new ride.<\/p>\n\n\n\n

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Car insurance companies with new car grace periods<\/h2>\n\n\n\n

Most insurance providers offer a new car grace period of some kind, although the terms of this grace period vary depending on the insurance company.<\/p>\n\n\n\n

Here are some examples of grace periods offered by different car insurance providers.<\/p>\n\n\n\n

Insurance company<\/strong><\/td>New car grace period<\/strong><\/td><\/tr>
State Farm<\/td>14 days (actual grace period varies by state).<\/td><\/tr>
Progressive<\/a><\/td>30 days.<\/td><\/tr>
Allstate<\/a><\/td>Between 7 and 30 days.<\/td><\/tr>
Travelers<\/a><\/td>Unspecified.<\/td><\/tr>
Nationwide<\/a><\/td>30 days.<\/td><\/tr>
Farmers<\/a><\/td>30 days.<\/td><\/tr>
Liberty Mutual<\/td>30 days.<\/td><\/tr>
Geico<\/a><\/td>Up to 30 days.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Even if you don\u2019t see your provider on this list, it may offer a grace period of some kind. Contact your insurance agent to learn more about your options.<\/p>\n\n\n\n

Coverage during a grace period<\/h2>\n\n\n\n

Most grace period insurance covers your new car under the highest level of coverage that your current policy contains \u2014 meaning if you have a full coverage policy with collision<\/a> and comprehensive<\/a> coverages, your new vehicle will be protected with the same coverage limits and deductible.<\/p>\n\n\n\n

However, if your policy is a state-required minimum policy, you may be covered with liability car insurance<\/a> only, and if you’re financing or leasing the new car, this won\u2019t be enough.<\/p>\n\n\n\n

If you have a loan or lease on your vehicle, the lender will require full coverage<\/mdspan>. You may also need\u00a0gap insurance, which can help you pay off your loan if your car is totaled.<\/p>\n\n\n\n

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Preventing a lapse in coverage<\/h2>\n\n\n\n

If you fail to officially add the new car to your policy before your grace period ends, you\u2019ll experience an insurance lapse<\/a>. Once your insurer finds out, they may cancel your policy entirely \u2014 and in either case, the lapse will go on your record and make it difficult for you to find cheap car insurance in the future.\u00a0<\/p>\n\n\n\n

The longer your insurance lapse, the higher your future insurance rates will be, though any lapse at all results in a higher insurance premium.<\/p>\n\n\n\n

Here\u2019s what happens if car insurance lapses.<\/p>\n\n\n\n