Yes, there is a grace period for car insurance when buying a new car, if you already have an insurance policy for another car. Most major insurance companies offer a grace period that lasts between seven and 30 days. This grace period will extend the coverage from your existing policy to your new car if you get into an accident before the policy is updated to include the new vehicle.
The length of the grace period for car insurance on a new car varies by company. Some companies, such as State Farm, Geico and Progressive, offer a 30-day grace period for existing customers. Others, however, do not offer one at all.
If you do not already have an insurance policy for another car, you will have to obtain a policy before you’ll be allowed to drive your new car off the dealership lot. In most cases, you can apply for and get insurance in under an hour.
You may have anywhere from 2 to 30 days to tell your insurance company that you bought a new car if you are already insured, depending on financing and coverage details. If you don’t have car insurance already, you’ll need to get a new policy before you can legally drive your new car. Most car dealerships require proof of insurance to drive off the lot, so you’ll have to do some planning.… read full answer
Either way, it’s wise to get car insurance quotes for different vehicles before buying one. That way, you’ll have a sense of which make and model is likely to increase or decrease your premium the most. At the very least, it’s something to take into account when picking your new car.
If you have an existing car insurance policy, there are two common grace periods for getting insurance on a new car:
2 to 4 days is common if you are adding a new car to an existing policy. Most car insurance companies will extend coverage to the new car in good faith, since it is usually required to get a loan. Such policies are designed to allow you to drive your new car home and make a call to your insurer quickly thereafter.
7 to 30 days is common if you are replacing a covered vehicle with a new car you purchased outright. In these cases, you can probably expect to have the same level of coverage as before. If you had liability-only coverage on the car you’re replacing, your new car would also have liability-only coverage.
Your policy term will transfer to the new vehicle in most cases, so you won’t have to start over with a new six-month or one-year policy.
If you are financing or leasing a new car, you may also want to consider adding gap insurance to your policy. Gap insurance will help pay the difference between the car’s market value and what you owe on your loan. Although collision coverage will pay fair market value for a totaled car, that may end up being less than you owe if you total your new car right away.
No matter how much time your insurance company gives you to get insurance on a new car, it’s best to reach out as soon as possible. Coverage specifics vary widely depending on state laws, insurance company rules, and individual policy provisions. If you miss a deadline, you could end up driving uninsured, which could result in legal fees, higher car insurance premiums, loss of your driver’s license, and more.
Yes, Geico has a 30-day grace period for adding a new car to an existing auto insurance policy. If you are already a Geico customer, you can drive your new car during the grace period and be covered by the Geico policy you already have. Drivers who are currently uninsured will need proof of insurance before they can drive legally.… read full answer
How much coverage will I have during Geico’s new car grace period?
If you’re already insured with Geico, your new car will be covered for up to 30 days under the terms of your current policy. If you have one covered vehicle, your new car will have the same coverage as the old one. If you have multiple cars listed on your policy, the new car will have the same amount of coverage as the one with the most coverage. Geico offers the same grace period terms whether you’re buying a new or used car.
If you need a loan for the new car, you will probably be required to prove that you have enough insurance before driving off the lot. Lenders require additional coverage to protect their investment—at least $100,000 for individual bodily injury, $300,000 for total bodily injury, and $100,000 for property damage liability, plus comprehensive and collision. If your current Geico policy doesn’t meet these standards, the dealership may require you to update your policy before you can take possession of the new car. If you’re paying cash or buying a car outright from a private seller, you probably won’t be asked to provide proof of insurance, but you still need coverage.
When should I add a new car to my Geico policy?
If you plan to drive the car during the grace period, you should confirm coverage details and make the necessary adjustments to your Geico policy quickly, just in case you get into an accident. Even though you’d still be covered within the 30-day grace period, you’re setting yourself up for extra headaches in the claims process if you don’t communicate effectively with Geico about changes to your policy.
Geico makes it easy to add or replace a vehicle online, through their mobile app, or by phone at (800) 207-7847, so there’s no need to wait. Plus, you can get the information you need (like the car’s VIN number) before completing the purchase of your new car.
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