Do insurance companies give you a grace period when you buy a car?

Come on… have you ever known an insurance company to give anything away? Grace periods, and whether or not you’re entitled to one, vary among insurances companies, and in some cases, are entirely dependent upon state laws.

In general, if you already have car insurance coverage with an insurance company, you can simply add a new car to your existing coverage and that will take immediate effect. In most instances, you cannot take possession of the car (especially one that’s been financed) without evidence of valid car insurance. Occasionally, if you’re trading in a car, you may be able to extend your current coverage until a new policy is written incorporating the new car, but again, that’s dependent upon your insurer and/or your state.

If you’re curious about whether or not there’s a grace period for a new car, before you consider driving that car off the lot, it’s important to know the facts, so call your insurance company or the state regulatory body that governs insurance.

The best (and safest and smartest) course of action is to have affordable auto insurance coverage in hand before you drive that car away. Accidents, right out of the dealership parking lot, have been known to happen… and it always seems there’s a news crew just waiting for a story like that. You don’t want your 15 minutes of fame that way, do you?