Quick question:

Having never bought a brand new off-the-lot car before, I'm not sure of the answer to this question so I thought I'd ask you all for some insight. How does it work when you drive a new car off the lot and you need to get it insured? Do you have a grace period? Do you have to get it insured first and then you can leave with the car? How does that all work? The car is being purchased in Texas, and it's a 2005. I'll post this in the Texas forum also.

Thanks for your insight and help in advance.

 

You prety much give the bank your word that you will get insurance on it, I think you sign some thing, then you insure it as soon as you can. Not sure on what the exact grace period is, but I have bought two cars from dealers. The TA we went to the insurance agent that day and the Blazer we went in on Monday.

 

Usually the dealer will call the insurance company and switch it for you. If you currently have full coverage, you are covered for the grace period.

 

How long is the grace period?

 

In the state of Texas, there is a 30 day grace period fpr like coverages only. This means you will have the broadest coverage that is currently on your auto policy. If you only have liability at the time of purchase, then the dealer will typically not let you drive off of the lot. There is NO grace period where you promise to purchase full coverage (comprehensive and collision) if you do not currently have it. If that were the case, and you happened to get into an accident that was your fault prior to adding full coverage, then there would be no coverage for the damaged vehicle. By the way, I am a licensed P&C agent in Texas. To sum it up: if you currently have full coverage then you have a 30 day grace period; if you only have liability then you will only have liability on the new car until you call your insurance company. If the dealership lets you drive off the lot anyway, then they are idiots. Congrats on the new vehicle,

Kyle