How long does it take to get car insurance?

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.

You can get car insurance without a license from some small local insurers, if you exclude yourself as a driver on the policy and list a licensed family member, friend, or caretaker as the primary driver. It’s possible, with some effort, to insure your car so someone else can drive it.… read full answer

Why You Might Need Car Insurance Without a License

• Your license is suspended and you need to file an SR-22 or FR-44 to reinstate it
• You only have a learner’s permit
• You are insuring a collectible vehicle that you won’t drive
• You own a car that is driven by a caregiver or chauffeur
• You need to co-sign a policy for an underage driver

How to Get Car Insurance Without a License in 4 Steps

1. Contact regional insurance companies or a local independent agent.

Focusing on smaller companies will give you the best chance of finding coverage as an unlicensed driver. Most national companies will not insure you without a license. The risk is too high, in their eyes, that you will drive the car yourself.

2. List yourself as an excluded driver on the policy.

This is a legal statement that, as an unlicensed driver, you are not going to drive the car. Note that if you do drive illegally and get into an accident, the insurance company will not cover any claims. If you get or regain your license while the car is insured, you must notify your insurance company and provide your new license number before you are legally insured on the policy.

3. List the person who will operate the vehicle the most as the primary driver on the policy.

This can be a spouse, family member, roommate, caretaker or friend. They may live with you or not. They must, of course, have a valid driver’s license.

4. List the primary driver on your registration as part-owner.

Try this step if you can’t find any company that will insure the car for you without a license. There should be no trouble insuring the car with a licensed driver listed as co-owner.

If no one is going to drive the car, but you want to protect it against accidental damage while it’s stored, you have the option of purchasing comprehensive-only or parked-car coverage. You will have to cancel your registration and turn in your plates to do this, but it is cheaper than buying a policy that also offers liability coverage. This type of insurance is offered by many national firms such as Allstate and State Farm.

It takes 3 to 5 years for car insurance to go down after an at-fault accident in most cases. Three years is a common penalty period for property damage claims. Insurance companies penalize drivers longer for accidents causing serious bodily harm or resulting from reckless or intoxicated driving. Premium increases vary widely by state and insurer, but the average increase is 41% after a single claim of $2,000 or more.… read full answer

Rates increase after an at-fault accident both to pay for the fees associated with filing a claim and to compensate the insurer for taking a higher risk. Drivers who have caused one accident are statistically more likely to be involved in another one.

Of course, if you pay for a policy with “accident forgiveness,” your rates won’t be raised for your first at-fault accident. Even without accident forgiveness, some insurance companies may give you a pass if it’s your first auto accident on a spotless driving record. Also, minor fender benders with less than $2,000 in damage may not trigger rate hikes.

However, no matter how minor your accidents are, if you have more than one within 6 years, or you have a combination of tickets and claims within 2-3 years, you are likely to face higher rates. Sometimes, it’s cheaper to pay for minor accident damage out of your pocket than to file a claim and trigger a rate increase.

Unfortunately, even if the accident you’re involved in isn’t your fault, you may find your insurance premium going up if you make a claim. This practice is prohibited by some states, but a study by the Consumer Federation of America found that most drivers who have made claims for not-at-fault accidents experienced rate increases of 8%-12%. For the insurance company, how much you’ve cost them is the most important consideration.

If age or inexperience, rather than accidents or violations, are the cause of your high premiums, you should see some decrease each year. If you’re a young driver, the biggest drop will come when you turn 25. If you are an older new driver, the largest decrease will come when you have five years of safe driving behind you.