How long is Delaware's new car insurance grace period?

The Delaware new-car insurance grace period is 7 to 30 days in most cases. The new-car grace period is how long insured drivers are allowed to drive a newly purchased vehicle before adding it to an existing car insurance policy. If you don’t have a current policy, you’ll need proof of personal injury protection and liability coverage before you can legally drive or register your car in Delaware.

When You Need Insurance to Buy a New Car in Delaware

If you’re financing a car, you will probably be required by your lender to have proof of insurance before driving off the lot. You can get the information you need for a policy, like the car’s VIN, from the dealership before completing the purchase. If you do have an active policy, your current proof of insurance should be all you need.

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 to take possession of the vehicle. Either way, you still have to meet minimum financial responsibility requirements to drive legally in Delaware: $25,000 in bodily injury liability coverage, up to $50,000 per accident, along with $10,000 in liability coverage for property damage.

If you lease or finance a car, you’ll probably also need collision and comprehensive coverage to protect the lender’s investment, which costs an average of $2,396 per year when purchased along with the minimum coverage that your state requires.

How Delaware's New Car Insurance Grace Period Works When You’re…

• Replacing your old car with a new car. Most insurance companies offer a 7  to 30 day grace period if you replace a covered vehicle on your policy. The same type and amount of coverage that applies to the car you’re replacing will apply to the new one.
• Adding your new car to your existing policy. Not all insurance companies extend coverage if you are adding a new vehicle to your policy without getting rid of an existing car—for example, if you’re going from two to three cars. If they do, it will be for a shorter time, usually only several days. If you’re adding your new car to your existing policy, you should confirm you have at least the minimum coverage required in Delaware for the car you are buying.

You probably have a grace period if you’re already insured, but it’s best not to depend on it. You should contact your insurance company as soon as possible to let them know about any changes you want to make to your policy, especially if you need to confirm coverage for a new car.