While buying a new car can be incredibly exciting, it’s no secret that it also requires a lot of paperwork. In addition to what you sign at the dealership, you’ll also need to make sure you’re properly insured before driving off the lot. In today’s blog, we answer your questions about transferring insurance from one car to another, new car insurance grace periods, new car insurance costs, and more.
Yes. In 48 states insurance is required by law, and you won’t be able to drive your new or used car off the dealership lot without proof of Auto insurance coverage. In fact, if you’re leasing your car, many leaseholders require both comprehensive and collision insurance, with some requiring gap insurance as well.
That said, if you have Auto insurance coverage for a different car and plan on transferring insurance from one car to another, many insurance companies offer a new car insurance grace period. During that period, your current Auto insurance coverage automatically applies to your new car.
It depends on your insurance policy. Many insurance companies offer a new car insurance grace period for transferring insurance from one car to another, which can last anywhere from 24 hours to one month. Because this grace period varies by insurance company, it’s imperative that you look into this before purchasing a car, so you don’t run into a situation where you get into an accident after your grace period ends but before you’ve secured proper Auto insurance for your new car.
If you have no previous Auto insurance policy, you’ll need to secure a policy before you’re allowed to drive the car off the lot.
It depends on a variety of factors, including your driving record, your area code, the make/model/year of the car, and your credit score, as well as your coverages and coverage amounts.
Generally speaking, new cars tend to cost more to insure because they tend to have a higher value than used cars. Some cars also have high-tech features that can raise your rates because their parts are more expensive to replace or repair. That said, some insurance companies also offer reduced rates for vehicles with certain types of technology that can help reduce your chance of getting into an accident.
Shopping for Auto Insurance? Grange Insurance Association’s got you covered. Reach out to an independent insurance agent today to learn more about coverage. In the meantime, check out our insurance blog, where we answer your questions about car theft and adding a teenager to your car insurance.
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