What Is the GEICO New Car Grace Period?
Last Updated on March 3, 2023
If you buy a new car and have GEICO insurance, then you should have a 30-day grace period.
GEICO typically offers a 30-day grace period on new vehicles. Because of GEICO’s new car grace period, you may not need to add your new vehicle to your GEICO policy for 30 days after purchase. However, GEICO recommends adding a new vehicle to your policy as soon as possible.
Keep reading to find out everything you need to know about GEICO’s new car grace period and how it works.
Table of Contents:
- GEICO Offers a 30-Day Grace Period on New Car Purchases
- How Much Insurance Coverage Do You Have During the GEICO Grace Period?
- Add Your New Car to Your Policy As Soon As Possible
- It’s Always Best to Add Your Vehicle ASAP
- Consider Adding Gap Coverage to Your GEICO Policy
GEICO Offers a 30-Day Grace Period on New Car Purchases
GEICO offers a 30-day grace period on new car purchases for most policyholders. You have 30 days to add your new vehicle to your existing insurance policy.
During this grace period, you can drive your new vehicle as you normally would, and GEICO provides insurance up to the limits of your policy.
If you do not have car insurance, or if your GEICO insurance does not have adequate coverage, then the dealership may not let you drive away – especially if you are leasing or financing the vehicle. Dealerships require proof of insurance before you can drive away, which means you may need to provide proof of your GEICO insurance policy.
How Much Insurance Coverage Do You Have During the GEICO Grace Period?
During the 30-day GEICO new car grace period, you have the same insurance coverage as you normally would on your personal vehicle. GEICO simply extends this coverage to your new vehicle for a maximum of 30 days.
Generally, dealerships require full coverage car insurance to drive your new vehicle off the lot. If you don’t have full coverage car insurance with GEICO, then you may be unable to drive your car off the lot – even with the 30-day new car grace period.
If you have full coverage car insurance with GEICO, however, then your new car should have the same coverage. If you have a 100/300/100 policy on your personal vehicle, for example, then you would have the same coverages and limits on your new vehicle, giving you $100,000 of bodily injury liability coverage per person, $300,000 of bodily injury liability coverage per accident, and $100,000 of property damage liability coverage.
Your GEICO policy should also cover your new vehicle up to its actual cash value. If you crash your new vehicle driving home from the dealership and it’s a total loss, for example, then GEICO would pay you an amount equal to the actual cash value of the vehicle.
Add Your New Car to Your Policy As Soon As Possible
GEICO gives you a 30-day grace period to add a new car to your policy. However, they also recommend adding a new car to your policy as soon as possible to avoid complications.
Generally, it’s best to let GEICO know about your new car immediately. The sooner you contact GEICO, the fewer complications there will be in the event of a claim.
Fortunately, GEICO makes it easy to add or replace a vehicle:
- Use the GEICO mobile app
- Call GEICO at (800) 207-7847
- Add or replace a vehicle using the GEICO website
It’s Always Best to Add Your Vehicle ASAP
For peace of mind, it’s best to add your new vehicle to your GEICO policy as soon as possible. In fact, some drivers tell GEICO before buying a vehicle. Your dealership may be able to provide the VIN upfront, making it easy to add your new vehicle to your policy from the first day you drive it.
By adding your vehicle to your GEICO policy ASAP, you can:
- Avoid headaches and complications with future insurance claims
- Avoid falling victim to obscure policy language or fine print – say, if driving your new vehicle between two states or renting a vehicle during this grace period
- Ensure you receive full compensation for your new vehicle after a total loss collision within the first few weeks of ownership
- Avoid a lapse in coverage when you potentially “forget” about the 30-day grace period and get into an accident on the 35th day after buying your new vehicle
Consider Adding Gap Coverage to Your GEICO Policy
If you’re buying a new vehicle, consider adding gap coverage to your GEICO policy.
Gap coverage covers the difference in value between the actual cash value of your vehicle and the amount remaining on your loan or lease.
If you just bought a vehicle for $30,000, then that vehicle’s actual cash value is not $30,000. Instead, it may drop to $25,000 the moment you drive it off the lot. If you crash your car in the first 30 days of ownership, then there may be a large “gap” between the amount you owe and the amount you receive from GEICO. That’s why many drivers buy gap insurance.
Your loan or lease payments may also include gap insurance. Check your paperwork to verify.
Final Word – GEICO Grace Period
GEICO gives you 30 days to add a new car to your insurance policy. During the 30-day new car grace period, your GEICO policy extends the same coverage to your new vehicle as you had on your old vehicle, up to the actual cash value of your new vehicle.
Although GEICO offers a 30-day grace period, the company recommends adding your new car as soon as possible. Otherwise, you could face complications when dealing with an insurance claim.