How Soon Should You Insure a New Car?

The question of how soon to insure a new car often arises during the buying process. Coverage should be in place before you take possession of the vehicle. In most states, driving a car without active auto insurance is illegal. Dealerships typically require proof of insurance before allowing you to drive off the lot. Without it, you could be held financially responsible for any incident when the car is under your control.

If you already have an auto policy, you may have a grace period that temporarily extends coverage to a newly purchased vehicle. However, the length and terms of this grace period vary by insurer and policy. Some offer a few days, while others may provide up to a week. Confirm these details with your insurance provider before assuming you’re covered.

What Happens If You Wait?

Delaying the process of insuring your new car can lead to more than just legal trouble. You could be responsible for all related expenses if an accident occurs before the vehicle is added to your policy. Even if the dealership allows you to leave without proof of coverage, the risk remains entirely yours once the car is in your possession.

Additionally, waiting too long to notify your insurer about the new vehicle can complicate the claims process later. If your policy includes automatic coverage for new purchases, that protection may only apply if the insurer is informed within a specific timeframe.

Financing or leasing a vehicle typically comes with insurance requirements set by the lender. These often include specific coverage types and limits. Failing to meet those requirements promptly could violate the terms of your agreement, potentially leading to penalties or even repossession.

A Proactive Approach

The best time to consider insurance is before finalizing the purchase. Contact your insurance provider with the vehicle’s details, such as the make, model, year and VIN, so they can prepare a quote and update your policy accordingly.

Contact Smith & Associates Inc for a personalized auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.