Is There a Grace Period for Getting Insurance on a New Car?
Last Updated on December 9, 2025
If you want to legally drive your new car, you need valid auto insurance. Many buyers wonder whether there’s a grace period for getting insurance on a new car—or if coverage must be purchased immediately.
Below, we explain how new car insurance grace periods work, when they apply, and what to expect, whether you already have insurance or are starting fresh.
Key Takeaways
- Most insurers offer a new-car grace period, but the length varies widely (from a few hours up to 30 days).
- Dealerships usually require proof of insurance before allowing you to drive your new car home.
- Leasing companies almost always require full coverage immediately, regardless of grace period rules.
- To avoid coverage gaps, contact your insurer before or right after purchasing your new car.
- Car Dealerships Typically Require Proof of Insurance Before You Drive Off
- If You Already Have Car Insurance, You Probably Have a New Car Grace Period
- Typical New Car Insurance Grace Period: 7 to 30 Days
- Some Grace Periods Last Only a Few Days — or Even a Few Hours
- Leased Vehicles Almost Always Require Full Coverage Immediately
- Grace Period FAQs
- Final Word: Do You Get a Grace Period for New Car Insurance?
Car Dealerships Typically Require Proof of Insurance Before You Drive Off
Auto insurance is required in nearly every U.S. state. If you want to drive legally, you must carry minimum required coverage.
Because of this, most dealerships will not let you leave the lot without proof of insurance. In many cases, they will verify your coverage electronically before finalizing the sale. If you cannot show proof of insurance, you usually cannot take the vehicle home.
This is especially true when leasing. When you lease a vehicle, the dealership or leasing company retains ownership interest, so they almost always require evidence of insurance before handing over the keys.
If You Already Have Car Insurance, You Probably Have a New Car Grace Period
If your current vehicle is insured and you purchase a new one, most insurers automatically extend temporary coverage to the new car. This is the “new car grace period.”
However, not all policies include a grace period, and coverage details vary widely. Always review your policy or contact your insurer to confirm how they handle new-vehicle purchases.
Some insurers require you to notify them before you take delivery of the car, while others will extend protection temporarily without prior notice.
If your policy does not automatically cover new vehicles, you may need short-term coverage to drive the car home. This is often called drive-away insurance.
Typical New Car Insurance Grace Period: 7 to 30 Days
Most major insurers offer a grace period ranging from 7 to 30 days. For example, GEICO, Allstate, and Progressive commonly offer 30 days, while State Farm generally allows 14 days.
During this grace period, you must notify your insurer that you purchased a new vehicle. Failing to update your policy could lead to a coverage lapse, meaning your new car may not be insured.
These grace periods typically apply when the new car replaces an existing insured vehicle on your policy.
Some Grace Periods Last Only a Few Days — or Even a Few Hours
Some insurers only offer extremely short grace periods—sometimes as little as 2 to 4 days. These provisions often cover you only from the dealership to your home, giving you a narrow window to formally update your policy.
Under these limited grace periods, you’re expected to contact your insurer immediately once the vehicle is in your possession.
This can be helpful if you purchase a car on a weekend when your agent isn’t available. However, relying on such a short window is risky—any delay or accident during that time could leave you uninsured.
To avoid surprises, call your insurer before buying the vehicle. You don’t want to discover after a collision that you weren’t fully covered.
Leased Vehicles Almost Always Require Full Coverage Immediately
If you’re leasing a new vehicle, be prepared to secure full coverage before driving off the lot.
Most leasing companies require collision and comprehensive coverage in addition to state-required liability limits. This ensures the vehicle is protected from physical damage from day one, regardless of any grace period in your personal policy.
Grace Period FAQs
Final Word: Do You Get a Grace Period for New Car Insurance?
Always confirm insurance requirements before buying a new car. Because auto insurance is required in most of the U.S., you don’t want to purchase a vehicle only to find you can’t afford the insurance or don’t have coverage to drive it home.
Generally, insurers follow one of three approaches to new car grace periods:
- A 7–30 day grace period is common when replacing an existing insured vehicle
- A very short (2–4 day) grace period covering only the drive home from the dealership
- No grace period at all, requiring immediate coverage
To avoid a lapse in coverage, contact your insurer before or immediately after purchasing your new vehicle. The sooner you update your policy, the better protected you’ll be.
