What Is the Progressive New Car Grace Period?

Last Updated on September 26, 2023

Like many insurers, Progressive offers a grace period when purchasing a new vehicle.

According to Progressive, you have 30 days to transfer your insurance to your new car. All coverages on your previous vehicle will continue to apply to your new car. Contact Progressive to add a new car to your insurance policy.

Keep reading to find out everything you need to know about Progressive’s new car grace period and how to register a new car with Progressive.

Progressive Offers a 30 Day New Car Grace Period

Most car insurance companies offer a grace period of 7 to 30 days on new vehicles. If you buy a new vehicle, then your insurance covers that vehicle during the grace period. You must notify your insurer about the new vehicle during the grace period to maintain coverage.

With Progressive, you have 30 days to transfer insurance to your new vehicle. You must notify Progressive of your new vehicle within 30 days of your purchase to maintain coverage.

Contact Progressive within 30 days of buying a new vehicle online or by phone. You can log in to your Progressive online account. Or, you can call Progressive at 1-800-776-4737 to add a new vehicle to your policy.

How Insurance Works with New Cars

If you buy a new car, then your current insurance policy will typically cover that new vehicle from the second you drive it off the lot.

If you have a car insurance policy with Progressive, for example, then your Progressive policy extends to cover that new vehicle from the moment you purchase it.

However, you get the same level of coverage as you had with your old car. Your old policy simply extends to cover your new vehicle. That might be fine if your old policy had high limits and extensive coverage options. However, some policies may leave your new vehicle underinsured.

To legally drive your car off the dealership lot, for example, you may be required to prove you have collision and comprehensive coverage (assuming you are leasing or financing the vehicle). If your old policy did not include collision and comprehensive coverage (part of a full coverage policy), then your dealership may not allow you to take possession of the vehicle.

Most states also require you to carry liability coverage. If your old policy does not carry enough liability coverage to meet state limits, then you could be in violation of state law – and the dealership may not allow you to leave the lot with your new vehicle.

Ultimately, an average Progressive policy provides the coverage you need on your new vehicle, and you should have no issue driving your new car off the lot if you have a full coverage policy with Progressive. However, check your policy and coverage options before buying a new vehicle.

How Much Does Insurance Cost for a New Vehicle?

Progressive considers hundreds of factors when calculating insurance premiums – including the make and model of the vehicle and your driving history.

If you just purchased a new vehicle, then your driver profile has not changed, but your vehicle has. After you tell Progressive about your new vehicle, you may pay higher or lower rates based on factors like:

  • Model year
  • Car make and model
  • Title and damage history
  • Amount of coverage purchased

Generally, it costs more to insure a new car than an old car. New cars tend to have higher value, and insurers are required to cover the full value of the vehicle (assuming you have full coverage insurance).

Insurance Requirements for New Vehicles

If you purchased a new vehicle with cash, and own the vehicle outright, then you can choose to carry the minimum required level of insurance based on state insurance laws. Or, you can carry additional coverage to protect the full value of your vehicle.

Here are the insurance requirements for new vehicles:

Financing or Leasing a New Vehicle

If you are financing or leasing a new vehicle, then you are required to carry the minimum amount of liability insurance required by your state along with full coverage car insurance to protect the collateral of the loan or lease – your vehicle. You typically require:

  • Liability coverage and any other state-required insurance coverage
  • Collision coverage
  • Comprehensive coverage
  • Gap insurance

Progressive refers to gap insurance as “loan/lease payoff coverage.” It covers the difference in value between the amount remaining on your loan or lease and the value of your vehicle in a total loss accident. In many cases, your new vehicle is worth less than the amount remaining on your loan, which means there’s a “gap” between these values. You would normally need to pay this gap out of pocket. With Progressive’s loan/lease payoff coverage for new vehicles, Progressive covers the gap. Most dealerships and lenders require this coverage (or they include it as part of your car loan payments or financing payments).

Buying a New Vehicle Outright

If you are buying a new car in cash and own the vehicle outright, then your required coverages are different. As long as there’s no lender or lienholder on the vehicle, you can choose any level of coverage you like – from minimum state-mandated liability insurance to full coverage protection. Required coverages include:

  • Any bodily injury or property damage liability insurance required by your state
  • Any other coverages required by your state (like medical payments coverage, uninsured motorist coverage, etc.)

No state requires comprehensive or collision coverage. However, most drivers add comprehensive and collision coverage on new vehicles. Without comprehensive and collision coverage, you have no protection for your own vehicle after a collision, vehicle theft, or other incidents.

Final Word

Progressive offers a 30-day grace period on new vehicles, extending your current plan to cover your new vehicle for up to 30 days.

Contact Progressive within 30 days of buying a new vehicle to add that new vehicle to your policy.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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