Does AAA have a new car grace period? This question is about AAA Insurance

Does AAA have a new car grace period?

Answer Question Report Abuse

This question is about AAA Insurance

WalletHub, Financial Company

@WalletHub • 05/14/21 This answer was first published on 05/14/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

Yes, AAA car insurance policies can have a grace period of up to 30 days, depending on the state. This means AAA customers could have nearly one month to officially add a new car to their insurance policy and purchase any additional coverage they may need. During that grace period, the new car will be automatically covered by the existing policy.

Keep in mind that your new car will only be covered by the types of coverage you already have. For example, if you have a liability-only policy and cause an accident, your insurance won’t cover any damage to your vehicle. It’s also important to note that the AAA new car grace period only applies to existing customers. Drivers without an active insurance policy must purchase coverage for the vehicle as soon as they buy it in order to avoid driving uninsured.

If you’re currently a AAA customer, you can add a new car to your policy online or by calling your regional AAA club. After you add the vehicle, you should expect your rate to go up, though the amount depends on the type of car that you purchase. Also, if you’re insuring your new car while keeping the old one, many AAA clubs offer a multi-vehicle discount that can help keep your rate manageable.

If you’re a new customer buying a AAA policy, you will need to provide the company with the vehicle identification number (VIN) and your personal information, including your driver’s license number and SSN. You cannot drive a new car off the lot without insurance, so you will need to have your policy set up on the same day that you buy the vehicle.

Answer Question

Does AAA offer discounts on rental cars?

Yes, AAA offers discounts on rental cars from Hertz, Budget, Thrifty, and Dollar Car Rental. The exact amount of a AAA rental car discount depends on factors such as the type of car and the length of the rental period, but AAA customers can save up to 20%. In order to get a discount, you will need to provide the rental car company with your AAA policy number.... read full answer

AAA Rental Car Discounts

Rental Company	AAA Customer Discount
Hertz	Up to 20%
Thrifty	8%
Dollar	10%
Budget	10%

Can I Use AAA’s Insurance for My Rental Car?

If you have liability, comprehensive, or collision coverage on your AAA policy, they will transfer to your rental car. Your rental car will have the same coverage limits as your personal car. As long as the car you’re renting is of similar value to your own, you can probably skip the rental company’s coverage. You’ll also want to pass on rental insurance at the counter if you plan to use a credit card as secondary coverage.

show less

Does AAA have a grace period for payments?

No, AAA does not have a grace period unless required by state law. In states that don’t have a mandatory grace period, AAA may cancel a policy as soon as a payment is missed. But if there is a mandatory grace period, policyholders can pay their past-due premium within a certain timeframe in order to avoid a lapse in coverage. If the grace period ends without the necessary payment being made, AAA will cancel the policy.... read full answer

When you miss a car insurance payment, AAA will usually send you a notice of cancellation that includes the final date that they will accept payment before your coverage lapses. Since almost every state requires you to have car insurance, a lapse in coverage could lead to serious consequences, including fines and even a license suspension if you’re caught driving. Additionally, going without insurance designates you as a high-risk driver and can make car insurance more expensive in the future, so it’s important that you pay your car insurance premium prior to the final cancellation date.

show less

Do you need insurance to buy a car?

No, you do not need insurance to buy a car, but you will need insurance to drive the car home. Most dealerships require proof of insurance before allowing you to leave with a car, since almost every state requires drivers to have car insurance coverage whenever they are behind the wheel.... read full answer

If you currently have a car insurance policy, most insurers will cover a new car up to your existing policy limits for 7-30 days. However, state laws and company policies differ, so you should ideally communicate with your insurer before you go car shopping. And if you’re leasing or financing a car, be sure to check the lender’s or lessor’s insurance requirements, since you might need to adjust your policy details accordingly.

On the other hand, if you are purchasing a car and do not have an existing auto insurance policy, it’s best to buy insurance before going to the dealership or private seller. If you know the exact car you’ll be purchasing, you can ask the seller for the vehicle identification number (VIN) in advance and use the VIN to purchase a policy tailored to that car. Otherwise, you can get insurance quotes for multiple car models beforehand and buy a policy before you actually drive off the lot.

show less

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

140

Ask Question

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author’s and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company’s responsibility to ensure all questions are answered.