How much time do you have to add your new vehicle to your auto insurance policy?
Well, it depends on your state, insurance company, and financing company, but in most (not all) cases, you will have between 14 and 30 days to update.
There is a car-buying misconception that you must insure your new vehicle before you leave the dealership. While Motor Vehicle Financial Responsibility Laws expressly say that you cannot drive without liability coverage, insurance companies, lessors, and lenders know that life happens. As long as you have an existing auto insurance policy, you will be fine (for now). If you forget to call your agent beforehand, or if you buy a vehicle on a holiday or at 7:00 PM on a weekend, it’s okay – don’t stress! Your carrier will extend you finite coverage in good faith, meaning they will allow your existing auto insurance policy to temporarily cover you if you promise to update within the grace period. However, if you are currently uninsured, you must purchase auto insurance before you drive off the lot; this is when the misconception holds true. Doing so is a painless process, especially when you use our talented sales and servicing team. Hit us up directly if you have any questions!
State Farm: 14 days
Allstate: 30 days
Progressive: 30 days
Geico: 30 days
USAA: 30 days
Liberty Mutual: 30 days
Farmers Insurance: 30 days
Travelers: 30 days, depending on the state
American Family Insurance: 14 days
Nationwide: 7 days
Erie Insurance: 60 days (liability), 7 days (comprehensive and collision)
CSAA Insurance Exchange (AAA): 30 days, depending on the state
Mercury Insurance: 30 days
The Hartford: varies by state
Auto-Owners Insurance: 7 days
Safeco Insurance: a number of days, depending on the state
National General: varies by state
We recommend that you defer to your auto insurance policy and Motor Vehicle Lease Agreement, since the concept of grace periods is fluid and changes for each customer. As you can see from above, there is no single, right answer. That said, it’s best to remove your old vehicle and add your new one as soon as possible. If you lapse, your financing company could “force place” insurance on you. We will post another blog later, explaining, precisely, what force-placed insurance is and how you can avoid it. For now, take a deep breath and relax. Try your best to update immediately, but if you can’t, know that you’ll be protected by a grace period.