Car insurance is an expense that every driver must consider. Whether you are buying a vehicle, used or new, from a dealership or a private seller, you will need to have car insurance coverage before legally driving home in most states. Nearly every state requires at least a minimum level of car insurance coverage. If you already have an active insurance policy and have purchased another vehicle or are replacing an existing one, a new car grace period may apply. A car insurance grace period, typically ranging from seven to thirty days, depending on your policy, applies to a recently-purchased vehicle. This grace period is designed to give you time to formally update your insurance policy to cover your new vehicle before penalizing you for driving uninsured.
Depending on your situation and insurance company, a new car grace period may apply for seven to 30 days (or not at all).
You could be considered driving without insurance if you exhaust your grace period.
If you have a car insurance grace period, typically, the best coverage on your policy extends to your new vehicle for some time.
What is a car insurance grace period?
If you have an active auto insurance policy, it may include a new car insurance grace period, which offers temporary insurance coverage for a newly-purchased vehicle. The grace period, which may last between seven and thirty days from the date the vehicle was purchased, gives you time to add the new vehicle to your policy and ensure cancellation of coverage on any vehicle(s) you may have sold or traded in, if needed. Not every insurance provider or policy may offer a car insurance grace period, so you will want to confirm this with your insurance company before driving your newly