What Happens if I Buy a New Car and Forget To Add It to My Policy?

If you don’t currently own a vehicle and don’t have an existing auto insurance policy, you’re less likely to run into trouble with insurance when purchasing a new vehicle, depending on how you make your purchase.

You cannot buy a new car without insurance if you’re purchasing from a dealership — they’ll require you to show proof of insurance before allowing you to drive off the lot, since driving without insurance is illegal (except in New Hampshire, but you still need to prove financial responsibility).

This means that if you don’t have an existing auto insurance policy, you’ll need to get one to take delivery of your new car. However, if you do have an existing policy that covers another vehicle, or the old car that you’re replacing, there’s a greater chance that your new car could go uninsured if you’re not careful.

When you buy a new or used car from a dealership, as mentioned earlier, you’ll need to show proof of insurance. However, dealers don’t necessarily check that your policy has been updated with your new vehicle’s information. Oftentimes, they will ask for your policy number or other details, verify that you have an active policy, and send you on your way.

Most insurance companies offer a grace period after you buy a new car to allow you time to update your policy information, so proof of an existing, active policy is enough to get you on the road legally. The key, however, is that you must remember to add your new vehicle within the grace period.

When you lease or finance a vehicle, you may need to show more detailed proof of insurance, since the lender still has a stake in it. You will also generally be required to have a full coverage policy.

Meanwhile, if you buy your new vehicle from a private seller, they are not required to ask you for proof of insurance, so you won’t necessarily be reminded about it and may be more likely to forget to update your policy. The grace period applies either way, and it’s your responsibility to make sure your auto insurance is sorted.

If you purchase a new car and already have a policy in force for another vehicle or vehicles, it will usually automatically cover your new vehicle for a certain period of time, even if you haven’t officially added it to your policy. This is referred to as the grace period and typically lasts between seven and 30 days. It varies by insurer, so it’s a good idea to confirm your provider’s grace period when you’re in the process of getting a new car so you know what to expect.

In the event that you have multiple vehicles covered under your current policy with different levels of coverage, the higher coverage usually applies to your new vehicle during the grace period. For example, if you have full coverage on one car and only liability coverage on the other, full coverage would temporarily apply on the new car.

Not all insurers offer grace periods, which is why it’s crucial to be aware of your insurance company’s policies. If yours doesn’t, you will need insurance before you drive away in your new car, or you will be driving illegally.

Once the grace period ends, you no longer have coverage. Failing to officially update your policy to include your new car before the grace period expires will result in a lapse in insurance coverage.

Driving an uninsured car is illegal (even in New Hampshire, you still need auto insurance if you cannot prove financial responsibility), and you can face consequences if you’re caught. Depending on the state, this may include paying a fine of up to $1,500, as well as having your license and/or registration suspended.

You’re also taking a huge risk by being uninsured, as any damage you cause while uninsured is fully your financial responsibility. In addition to these penalties and risks, you’ll likely face higher premiums as a result of your coverage lapsing, even if it’s just for a few days.

Adding a new car to your pre-existing auto insurance policy is pretty straightforward. Some insurers may even allow you to do this online.

First, decide whether you’re replacing your old car or simply adding the new one to your policy. If you’re replacing the old car, you’ll also need to make sure that one is removed. If you’re adding the new car, you should also check about eligibility for multi-car discounts.

Overall, the process is the same. Give your insurer a call, simply tell them you want to add a car to your policy, and they’ll guide you through the process. You’ll need information about the vehicle, such as the VIN and license plate number. If you’re using your insurer’s app or website, if this functionality is available, find the option to add a car, and then follow the instructions.

When adding a car, you’ll need to decide what kind of coverage you want. You don’t have to retain the same coverage for all your vehicles, so if you only had minimum coverage on your old car, for example, you can add comprehensive coverage on the new one.

After that, all you need to do is get proof of coverage. You can usually print out proof online, or you can ask your insurer to send you documentation. You can also get an insurance card on your phone via the mobile app, but this isn’t always ideal because you won’t be able to provide documentation to the police if your phone dies.

Buying a new car is an exciting event, but it also comes with important responsibilities, including making sure that it’s properly insured. If you have an existing insurance policy and you forget to add your new car right away, you may be offered a grace period by your insurer. It’s best to confirm this before you make the purchase, but it may last between seven and 30 days.

If you miss the grace period, your auto insurance will lapse, which can have serious consequences. Not only will you be driving illegally, but you may have a harder time finding great insurance rates when you reinstate your policy because insurers consider drivers with lapsed coverage to be a higher risk.

Ideally, you should update your policy to remove your old car and add your new one before you drive away from the dealership or private seller. You can do this over the phone with your insurance company on the spot, and it can usually be taken care of quickly and efficiently as long as you have your new vehicle’s information.