Are you in the market for a new car right now? If so, you’re probably very excited to get behind the wheel of a car that has more bells and whistles than your current car does. But before you purchase a new car and drive it off a dealer’s lot, it’s important for you to make sure that your car insurance situation is all worked out. Most people don’t spend too much time thinking about this while shopping for a new car and get overwhelmed by the process of insuring a new car at the last minute. Fortunately, there is a buying a new car insurance grace period that exists for most people. Learn all about it while learning how to insure a new car below.
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How Soon Do You Have to Get Insurance After Buying a Car?
There are some people who are under the impression that they can buy a new car and then worry about getting that car insured later on. It’s why they don’t devote too much time to thinking about car insurance while shopping for a new car. But in reality, you need to have a new car insured the second that you sign on the dotted line and take ownership of it. Otherwise, you could be on the hook for any repairs that need to be made to it once you own it.
For this reason, many car insurance companies will help new car owners out by providing them with a buying a new car insurance grace period. This grace period will run for anywhere from 7 to 30 days in most cases and will keep a new car covered under the same insurance policy that a person had on their old car before. This grace period is a great thing for many car owners because it allows them to keep their same policy for the time being while they figure out how they should go about insuring a new car.
Whatever you do, don’t attempt to drive off a dealer’s lot in a car that’s not insured. You could find yourself in a world of trouble if you do this. You should instead find out if your car insurance company offers a buying a new car insurance grace period and take full advantage of it.
Do You Need to Have Insurance on a Car You Just Bought?
If you only live a few minutes away from a car dealership, you might not see the harm in driving a new car home without having insurance on it. What’s the worst that could happen, right? Well, for starters, you’re going to be doing something illegal if you attempt to drive a new car without insurance. If you get pulled over, you’re going to be ticketed and fined for operating a motor vehicle that is not properly insured.
As we mentioned a few moments ago, you could also find yourself in a tough spot if you drive a new car that’s not insured home and you end up getting into an accident in it. Since the car isn’t insured, you’ll be liable for paying for any repairs that need to be made to it. And if it’s totaled in the accident, you’ll also be responsible for paying for the balance of the car even though it won’t be drivable anymore. That’s not a situation you ever want to be in.
You should take the proper steps to make sure that a new car is insured from bumper to bumper prior to driving it home. That might mean setting up a brand-new car insurance policy for your car. Or it might mean calling your car insurance company up and asking them if you can get access to a buying a new car insurance grace period. Either way, it’ll prevent you from running afoul of the law and protect the investment you just made in your new car.
What Happens If You Don’t Have Insurance on a New Car?
If you don’t have insurance on a new car, a dealer really shouldn’t let you drive off their lot. But if you decide to do it anyway, there is a whole host of things that could happen to you. You could, for example, get pulled over and have your new car towed by a police officer. That could result in you having to pay a small fortune to get your car back from an impound lot. You could also face a mountain of fines and other penalties if you’re ever found driving a car without insurance on it.
But the worst consequence of driving without insurance on a new car would be what would happen if you were involved in an accident. You would be 100 percent responsible for any damage that your car sustained. You would also be responsible for damage done to other cars in the crash, and you might be on the hook for your own medical bills and the medical bills of others as well. It’s why you don’t ever want to drive without insurance on a new car, no matter how close you live to a dealer’s lot.
How Can You Make Sure a New Car Is Insured From the Start?
As you can clearly see, driving a new car without insurance is a big no-no. It could end up being one of the biggest mistakes that you ever make. So, how can you avoid finding yourself in this position? It’s actually not as difficult as you might think.
The first thing you should do is give your car insurance company a call when you’re seriously considering buying a new car. They’ll let you know if they offer a buying a new car insurance grace period to their customers. If they do, you can make the decision to obtain a brand-new insurance policy if you want. But you can also go ahead and use the grace period to your advantage. This grace period should provide you and your new car with the protection that you need from the start.
You’ll also have the option of obtaining a brand-new car insurance policy for your new car. This is usually going to be the better option if you didn’t have a whole lot of coverage on your old car. It’ll ensure that you don’t have to pay an arm and a leg if you happen to get into an accident in your new car. By upgrading your current auto insurance policy, you’ll be able to rest easier at night knowing it offers the coverage that your new car needs.
Buying a New Car Insurance Grace Period: Does It Exist?
As we’ve talked about a few times now, most auto insurance companies extend some kind of buying a new car insurance grace period to their customers. These grace periods are specifically designed to protect those who purchase new cars. They make it possible for someone to buy a new car and not have to worry about upgrading their insurance policies right away.
That being said, not all auto insurance companies offer a buying a new car insurance grace period. Additionally, not all of them give people grace periods that span over the same length of time. Some insurance companies only offer grace periods that last for a few days. Others will provide people with grace periods that last for a full month. It really all depends on which insurance company you use.
It would be smart for you to get in touch with your insurance company to ask them what their buying a new car insurance grace period is like. They’ll be able to break it down further for you and tell you exactly how long your grace period will last. This will be one less thing you have to worry about once you buy a new car.
How Long Can You Go Without Insurance on a New Car?
We think we’ve stressed the importance of insuring a new car enough now by letting you know over and over again that you cannot drive a new car without insurance on it. You’re going to be testing fate if you do it and putting yourself into a terrible position. But if you happen to have a buying a new car insurance grace period, then you can go without getting a new auto insurance policy for at least a week or so in most cases.
Generally speaking, the majority of auto insurance companies will allow people to drive a new car around for at least a week without picking up a new insurance policy. But every company has a slightly different buying a new car insurance grace period. Yours might ask you to get a new insurance policy within a week—or they might give you a full month before you need to have a new insurance policy. It’ll be your job to find out how long your buying a new car insurance grace period lasts.
Should You Get a New Insurance Policy When Buying a New Car?
More often than not, those buying new cars will be investing in vehicles that are worth more than their old ones. It’s why it makes sense for them to get a new insurance policy for it. Their old insurance policy is typically not going to cut it when it comes to providing more than enough coverage for their car. You should think long and hard about upgrading your auto insurance policy to fit your new car’s needs.
If you don’t have enough coverage on a new car, it could lead to you paying more money than you would like later on to make repairs to you. It could also get you into some trouble with your lender if you don’t have your car properly insured. You should always make some time to talk to a representative from your auto insurance company to see what they would recommend as far as coverage goes. It’ll help you select the right insurance policy for your specific car.
Does Car Insurance Go Up If You Get a New Car?
One of the things you’ll need to prepare yourself for when buying a new car is paying more than you might be used to for insurance. Oftentimes, those who buy new cars see their insurance rates go up pretty dramatically, at least at first. Once your buying a new car insurance grace period ends, you’re going to need to be ready to pay higher rates than you were used to paying before.
Just because your car insurance might go up doesn’t mean you shouldn’t buy a new car. But it is something that should be on your radar so that you can plan accordingly. Some people will buy a car that costs a little less than what they can actually afford to pay so that they’re able to cover the increased insurance costs associated with it. It’s a good solution to this problem that pops up for a lot of people.
How Can You Find the Lowest Insurance Rates for a New Car?
Many auto insurance companies provide people with a buying a new car insurance grace period because it helps them retain these people as customers. But you should know that you don’t have to stick with the same insurance company you had before after you buy a new car. You’re welcome to look around for lower insurance rates offered by other companies.
The internet has made it very easy for people to shop for the lowest insurance rates for new cars. Within a matter of just an hour or two, you can track down better rates than whatever it was you were paying before to insure your car in most cases. Don’t be afraid to use your buying a new car insurance grace period to shop for rates that could help you save a ton of money.
How Often Should You Shop Around for Car Insurance?
Once you’ve obtained a new insurance policy for your new car, you might think you’re all set for many years to come. But you should actually continue to shop around for car insurance every so often to make sure you always have the best rates possible. Some experts suggest that people shop around for insurance rates every 6 to 12 months.
You should always be on the lookout for better insurance rates than the ones you have now. It’ll help you keep your car insured without breaking the bank. It’ll take a little bit of effort on your part, but that effort will be well worth it in the end when you’re saving money on car insurance every month.