Is There a New Car Grace Period for Insurance?

Last Updated on March 7, 2020

Getting a new car is exciting – it means newfound freedom and comfort as you travel around your city. It’s crucial that you have insurance for your new car, but it can take some time to get things set up. Most insurance companies offer a grace period as you switch from an old car to a new one. However, New York State has very strict laws prohibiting anyone from driving without car insurance. Here’s what you need to know about the new car grace period in New York.

Is There a New Car Grace Period for Insurance?

Most Insurers Offer a Grace Period If You Already Have Coverage

If you already had insurance on your previous car, most insurance companies will give you a grace period where that coverage extends to your new car. This grace period is usually around 30 days. However, some insurers have a longer or shorter grace period, so you should always review your policy before buying a new car. During this time, you’ll need to inform your insurer of your new car so they can adjust your policy. In most cases, your insurance will go up when you get a new car because it will be worth more. However, if you have safety features or anti-theft devices in your car, you could be eligible for new discounts that you didn’t qualify for before.

If You Don’t Have Existing Coverage From Another Car, Don’t Drive

If you’re buying a car for the first time and don’t have existing coverage from a previous policy, you won’t have the same grace period to fall back on. In this case, you should hold off on driving your new car until you have an insurance policy and registration in place. There are serious legal consequences for driving without insurance in New York State. If you’re planning on buying your first car soon, the best way to handle this is to start shopping for insurance policies before the car purchase is finalized. If you know what make and model of the car you’re going to buy, you will be able to get a quote online ahead of time, so you’ll know exactly how much you’ll need to spend to insure your car. Your insurance company should then be able to set you up with a policy quickly so you won’t have to go much time without one.

What Happens If I Get Caught Driving Without Insurance?

There are many serious consequences if you are caught driving without insurance. At the very least, you will receive a ticket if you are pulled over by a law enforcement officer. However, in the worst-case scenario, you could be arrested and your car could be impounded. The New York DMV can also opt to suspend or revoke your driver’s license and registration, which means you won’t be able to drive at all.

If you get into an accident while driving a car that is not covered by insurance, the consequences can be dire. If you’re found at fault, you’ll need to pay any liability costs out of pocket. You also won’t be covered if you get injured or experience any property damage as a result of the crash. Additionally, you will be fined for driving without insurance, and fines for this can cost as much as $1,500.

When You Change Your Insurance, Report It to the DMV

When you’re switching to a new insurance policy for a new car, you’ll want to make sure that the DMV is aware to avoid any problems with your registration. In most cases, your insurance company will report these changes to the DMV for you. However, it can’t hurt to check and make sure that all the information on your vehicle registration is current. You should also make sure that you always have your insurance information with you when you’re driving, to prevent any issues if you are pulled over. In addition to keeping a paper copy of your insurance information in the glove compartment box, many insurance companies will give you the option to keep a digital copy on your cell phone.

Tips for Shopping for New Car Insurance

Buying a new car is a great opportunity to shop for new auto insurance. This is the perfect opportunity to look at many different insurers in your area and see who can offer the best prices. Get quotes from several options and compare them to see which makes the most sense for your needs. If you decide you want to switch to a different insurance provider, check to see what your options are in terms of ending your policy. Most companies will allow you to leave mid-policy, but you may have to give them a certain amount of advance notice. Many companies will also charge fees if you leave mid-policy. When you leave your car insurance company, you also won’t get the grace period when you switch to a new car. You’ll need to be careful and make sure you’re not out on the road without insurance.

Buying a new car is exciting, but it’s important to make sure you have the insurance completely set up before you start driving around the city. If you get into an accident and don’t have insurance, it could have devastating consequences. If you stay with the same insurance company, you’ll be able to take advantage of a short grace period until you get a new contract set up.

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