How long do you have after buying a car before you’re legally required to have proof of insurance on that vehicle? The answer varies from state to state, so it’s important to know about the California new car insurance grace period before buying a new vehicle.
Most people know that as soon as you get a new vehicle, it’s important for you to get insurance coverage on that vehicle so that you’re protected in the event of an accident. Not only that, but you’re required by the state of California (and every other state) to have at least a minimum level of coverage on any vehicle you drive.
(In California, those minimum coverages are $15,000 for bodily injury coverage per person, $30,000 total for an accident, and $5,000 for property damage.)
But do you need to have your vehicle insured from the moment you drive it off the lot? Is there a California new car insurance grace period that gives you some time to get your vehicle covered? In this article, we’ll cover everything you need to know about the California new car insurance grace period as well as answers to other questions relating to your car insurance.
In California, you’re required to have proof of coverage anytime your vehicle is in use. This can be in the form of a physical insurance card or a digital one displayed on your cell phone. The point is that a law enforcement officer or a person involved in an accident should be able to see that you have proof of insurance on the spot.
When you first buy a vehicle, you might not be able to provide that proof of insurance right away. That’s why the California new car insurance grace period is in place, giving you some time before you can get into trouble for not being insured.
The California new car insurance grace period is 30 days, which is how long you have after purchasing a vehicle to get insurance coverage for that vehicle and provide proof of that coverage to the California DMV.
If your previous vehicle was already covered under an existing policy, your grace period to change the policy to reflect your new vehicle is 45 days.
Remember— this grace period doesn’t protect you in the event of an accident. If you’re caught driving that vehicle without insurance during the grace period and you’re in an accident, you could be personally liable for any costs associated with the accident.
Many car buyers wonder whether, in addition to the state of California new car insurance grace period, they can also receive a grace period from their insurer before having to update their policy. Generally, the answer is yes— but that period can vary depending on the insurer. In general, your car insurance company’s grace period before you must update your policy to reflect changes will be between one week and one month. Talk to your specific insurer if you want to know their specific policy on a grace period.
Remember— your insurer is required to report to the state government about drivers who aren’t covered by car insurance. That’s how the state knows if a driver is operating without insurance, and how they’ll penalize you if you’re not properly covered.
Recently, California government officials in charge of insurance have called for a 60-day grace period during which insurance companies won’t cancel insurance cover due to unpaid premiums relating to the COVID-19 virus. But that grace period was never officially enacted, which means that your insurance company can still cancel your policy for nonpayment. Make sure to always stay up-to-date on your premiums!
If you find yourself in need of insurance coverage in California, your first step is to get a quote. Many insurance providers, like Freedom National, will provide you with a fast and free quote you can get in minutes online. You should compare multiple insurance providers before making your decision. This will help ensure that you get the best possible price while also getting the best possible coverage for your needs. Quality service is important, too, so make sure you read reviews from current or past customers of various insurance companies before deciding.
Purchasing car insurance within the California new car insurance grace period shouldn’t be a stressful or difficult experience. With Freedom National, you can get a quote in just a few minutes. Meanwhile, you can browse our blog to learn more about the most important car insurance topics— especially as they relate to the state of California and its unique requirements.
Looking to access cheap car insurance in California? You can find it here at Freedom National, where we offer the best cheap car insurance California has to offer.