What Is the Allstate New Car Grace Period?
Last Updated on September 17, 2023
Allstate offers a grace period of 30 days on new vehicles.
If you’re an Allstate customer who just bought a new vehicle, then your current policy extends to your new vehicle for 30 days, and you must add your new vehicle to your Allstate policy within that 30-day period.
Keep reading to discover everything you need to know about Allstate’s new car grace period and how to insure a new car with Allstate.
Key Takeaways:
- Allstate provides a 30-day grace period for new vehicle purchases, during which your current policy extends to your new car.
- You must add your new vehicle to your Allstate policy within this 30-day period to maintain coverage.
- You can add a new car to your Allstate policy online or by calling their customer service. For new customers, certain information like the Vehicle Identification Number (VIN) may be required.
- Insurance premiums may increase when adding a new vehicle due to factors like vehicle age, make and model, and expected annual mileage.
Allstate Offers a 30-day New Car Grace Period
Unlike other insurance companies, Allstate doesn’t directly publish its new car grace period upfront. However, Allstate appears to offer a 30-day new car grace period for most customers in most states.
If you buy a new car, then your Allstate policy applies to that new vehicle for a maximum of 30 days. You must notify Allstate of your new vehicle within that 30-day window. Otherwise, you’ll lose coverage.
Your current Allstate policy applies to your new vehicle. You get the same coverages and options on your new vehicle that you had on your old vehicle. As long as you have full coverage car insurance, you should have no trouble driving your new car off the lot. However, if your current Allstate policy is a minimum liability insurance plan, then your dealership may not let you drive away without proof of full coverage.
How to Add a New Car to Your Allstate Policy
You can add a new car to your Allstate policy at any point within 30 days of your purchase.
You can log into your Allstate account online to add a new vehicle. Or, you can call Allstate at 1-800-669-1552 to add a new vehicle.
If you’re a new customer buying an Allstate policy for your new vehicle for the first time, then you may need to provide Allstate with the vehicle identification number (VIN) and personal information to receive coverage.
How Allstate Insurance Works for New Vehicles
Allstate, like most insurers, offers a grace period on new vehicle purchases. You don’t need to notify Allstate before you buy a new vehicle, but you do need to notify Allstate within 30 days of buying that vehicle.
Here’s how car insurance works on new vehicles with Allstate and most other major insurers:
- Most insurers offer a grace period on new vehicles. During this grace period, your current car insurance policy extends to cover your new vehicle.
- While other insurers offer a grace period of 7 to 30 days, Allstate offers a 30-day grace period. You must notify Allstate about your new vehicle within 30 days of purchasing that vehicle.
- The dealership requires proof of insurance coverage before you drive away.
- As long as you provide the dealership with proof of insurance coverage and you have an active Allstate policy, your Allstate policy should cover your new vehicle from the moment you leave the lot.
- Your Allstate policy continues to cover you for a maximum of 30 days after you purchase your new vehicle. You can notify Allstate of your new vehicle purchase at any point within that 30-day window. However, most insurance experts recommend notifying Allstate as soon as possible to avoid any insurance complications.
Insurance Requirements for New Vehicles
The car dealership will not let you drive away with a new vehicle until you provide valid proof of insurance coverage. You must prove you’re carrying the required minimum amount of insurance coverage.
The specific minimum amount of insurance coverage varies based on whether you’re leasing or financing the vehicle – or buying the vehicle outright.
Leasing or Financing a Vehicle
If you are leasing or financing a vehicle, then there’s an additional lender or lienholder attached to your vehicle. That lender or lienholder requires you to carry additional insurance beyond state-mandated limits. Typically, lenders and dealerships require proof of the following coverages before you leave the lot:
- Liability insurance that meets or exceeds state-mandated limits
- Collision coverage
- Comprehensive coverage
- Any other state-mandated insurance coverages
No state requires collision or comprehensive coverage. However, dealerships require these coverages to protect the collateral of the loan or lease. Many dealerships and lenders also require gap coverage. Or, they bundle gap coverage into your loan or lease payments. Gap coverage covers the difference in value between the amount you receive in a total loss insurance claim and the amount of money required to pay off your loan or lease. You can buy gap coverage from your dealership. You can also buy it from Allstate or other insurance companies.
Buying a Vehicle Outright
If there is no lender or lienholder on your vehicle and you purchased the vehicle outright, you can carry as much or as little insurance as you like – as long as it meets state-mandated insurance limits.
Generally, most people add full coverage car insurance (including collision coverage and comprehensive coverage) to a new vehicle to protect their purchase. However, your dealership only requires proof of the following coverage to let you drive away:
- Liability insurance that meets or exceeds state-mandated limits
- Any other state-mandated insurance coverages
How Much Does New Car Insurance Cost with Allstate?
Generally, you can expect insurance premiums to rise when adding a new vehicle to your policy. New vehicles tend to be worth more than older vehicles, which increases risk for your insurer.
Although driver-specific factors (like age, gender, and driving history) haven’t changed, Allstate will adjust premiums based on vehicle-specific factors, including:
- Vehicle age
- Vehicle make and model
- Expected annual mileage with new vehicle
- Other vehicle-specific factors
Final Word
Allstate offers a 30-day new car grace period. You have 30 days to notify Allstate of your new vehicle. If you fail to notify Allstate within the 30-day grace period, then you will lose insurance coverage.
Contact Allstate to add a new vehicle to your insurance policy and maintain coverage.
