March 28, 2023

Whether it is your first car or a replacement of your old one, buying a car, albeit used, is exciting. However, amid the excitement, you still have to get car insurance for it. You might be wondering how long the grace period is to get insurance once you’ve bought a used car. If you are purchasing the used car from a dealer, then they might require you to have insurance before driving off. And if not, the rules might vary. We have broken all that down for you, exploring the possible scenarios.

When You Already Have Car Insurance

The regulations might be slightly different from one state to another. However, generally, if you are trading in a car and already have insurance for it, it will apply to your new ride for some time. You usually have one to three days. Ensure that you inform your insurance provider so that they can remove your old car if need be and replace it with your new purchase.

While you can inform your insurance provider on the day of the purchase, you can also let them know before buying it—that is, if you are sure of which car you are purchasing. You will need to provide information about the vehicle, such as the vehicle information number (VIN) and the purchase price. 

When You Don’t Have Car Insurance

For some reason, you might not have car insurance at the time of the purchase. As we mentioned earlier, a dealer might not let you drive off without insurance. Driving a car without insurance is illegal. Even if you are buying a used car from a private individual, it would be best to get car insurance. If you don’t, then you are putting yourself at risk of being pulled over and parting with a fine. 

Which States Are an Exception?

Like we’ve mentioned earlier, the regulations may vary from state to state. However, all states except two require you to have car insurance, whether your car is new or used. These two states are New Hampshire and Virginia. However, even in these two states, you will be financially liable if you get involved in an accident. 

Shopping for Car Insurance

The same way you go shopping for a used car is the same way you need to shop for car insurance. The rates may vary, and it would be quite devastating to find out when it’s too late that the car insurance premium is way beyond your budget.