When you buy a new car, you want the process to go as smoothly as possible. Don’t let not knowing enough about car insurance be a downer on your day. In this article, we’ll answer some of the most commonly asked questions about insurance. For one, how soon do you have to get insurance after buying a car?
Learn more about the timeline for getting insurance, then take a look at some of the best auto insurance companies in the country. If you’re ready to go ahead and purchase a car insurance policy now, enter your zip code below to start comparing quotes. We always recommend getting at least three quotes so you can compare coverage and price.
In this article:
How Soon Do You Need Insurance After Buying A Car?
If you currently have auto insurance on a car, you typically have a grace period of seven to thirty days before you have to report your new car to your insurance company. Your current coverage should extend to your new car automatically for the duration of your grace period, but check with your provider to confirm this.
If this is your first car and you don’t have car insurance already, you have to buy insurance before you can take possession of the car. Remember, it’s illegal in almost every state to drive a car without proof of insurance, and the consequences of driving or being involved in an accident without proper insurance can be severe.
And how soon do you have to get insurance after buying a used car? The process is the same for new and used cars. You need auto insurance to take possession of the vehicle.
So, Do You Buy A Car Or Insurance First?
In most cases, you want to buy auto insurance before you buy a car. The exception to this is if you already have an insurance policy for a different vehicle. If you are adding a vehicle to your policy or replacing one, your existing policy should cover the new car too, so you don’t need a new policy before you drive the vehicle home.
If you don’t have insurance, you can purchase a car first, but it’s easier if you can get the car insurance policy first so you can take possession of the car on the purchase date.
Here are a few more things you should know about insurance when buying a car:
When You Already Have Insurance | When You Don’t Have Insurance | |
New Car | You have a 7- to 30-day grace period (depending on your state) to tell your car insurance company about the new vehicle. | You must buy insurance before taking possession and driving the car off the lot. If you don’t, you won’t be able to take possession of the vehicle. |
Used Car | If you know exactly which car you are buying, give the VIN, purchase price, and other information to your insurance company. | You must buy insurance before taking possession and driving the car off the dealer lot. Independent sellers don’t usually ask for your insurance information, but driving without insurance or proof of financial responsibility is illegal. |
Financing or Leasing a Car | Be sure your current coverage includes the collision and comprehensive car insurance required for your loan or lease. | Be sure your current coverage includes the collision and comprehensive insurance required for your loan or lease. |
How Do I Get Proof Of Insurance Before Buying A Car?
If you already know exactly which car you are going to buy, you can pre-purchase insurance with information like the vehicle identification number (VIN). We recommend contacting a variety of auto insurance companies and comparing quotes so you know you’re getting the best coverage.
When you buy a vehicle from a dealership, representatives can also help you purchase insurance for your new car on site. You’ll be able to call an insurance company from the dealership to start a policy once you’ve picked out the car you want.
In the event that you already have car insurance (possibly for another car at home), you can show your insurance card at the dealership.
How To Buy Car Insurance Over The Weekend
Some car insurance companies are open on the weekend, but in general, you’ll need to wait until a weekday to add a vehicle to your policy or purchase insurance for the first time.
Our Recommended Car Insurance Providers
When shopping for auto insurance, it’s smart to compare quotes. When we researched insurance industry leaders, Progressive and State Farm were two providers that stood out for extensive coverage and reasonable rates.
If you’re ready to start comparing car insurance quotes, enter your zip code below. Along with the providers you choose, factors like your age, vehicle make and model, and driving history can affect the car insurance rates you see.
Progressive: 4.5 Stars
If you’re in your 20s or have a DUI in your driving history, you’re considered a high-risk driver. Getting affordable coverage can be difficult, so we recommend looking into Progressive car insurance. We named the provider best for high-risk drivers in our industry review.
There are many perks to becoming a Progressive customer, like access to easy-to-use technology like the Name Your PriceⓇ tool. The tool allows you to start searching for auto insurance with the amount you want to pay, then shows you plans that fit within your budget. Plus, there’s the usage-based SnapshotⓇ program that can be a good choice for people who don’t drive very much. According to the Progressive website, drivers save an average of $ 145 after using Snapshot.
State Farm: 4.5 Stars
State Farm auto insurance is our top choice for students, but most drivers can find great coverage with State Farm. The insurer has a variety of discounts and mobile apps like Steer ClearⓇ and Drive Safe & Save™. Steer Clear is a driving refresher program that encourages safe driving habits in customers under the age of 25, while Drive Safe & Save monitors driving habits for drivers of all ages to help them save on car insurance.
Along with standard coverage, State Farm has extras like rental and travel expense reimbursement, rideshare coverage, and roadside assistance.
FAQs About New Requirements
Can I drive a car I just bought without plates?
If you have a car without license plates, you’ll have to have it delivered to your house. It can’t be driven or even parked on a public road in most cases until you have a registration and insurance. When you purchase a car from a dealership, it will have temporary license plates.
What happens if I’m involved in a car accident before I have a chance to notify my insurance company of my new car?
If you’re in an accident before you have a chance to notify your existing insurance company of your new car, you should still be covered up to the same liability limits on your policy. But you should check with your provider to be sure.
Is there still a grace period if you buy a car from a private seller?
When you buy a car from an individual, your current auto insurance coverage grace period should apply. You have the same amount of time to notify your provider as if you were buying the car from a dealership, which can be up to 30 days in some states.
What happens if I have a lapse in coverage?
It’s very important that you avoid having a lapse in coverage. A lapse in coverage not only leaves you unprotected, but it can also work against you when you’re trying to get coverage later on. Auto insurance companies see a lapse in coverage as a red flag and may increase your rates as a result.
Read our other guides:
