California’s New Car Insurance Grace Period
After purchasing a vehicle in California, you have 30 days to get insurance and provide proof of that coverage to the California DMV.
Written by Jacqulyn Graber
Reviewed by Hillary Kobayashi
The California new car insurance grace period is 30 days, which is how long you have after purchasing a vehicle to get auto insurance coverage for that vehicle and provide proof of that coverage to the California Department of Motor Vehicles (DMV).
In California, you’re required to carry
proof of insurance
anytime your vehicle is in use. This can be in the form of a physical insurance card or even in a digital format on your cell phone. We’ll discuss the Golden State’s car insurance coverage grace period, how to shop for a new car insurance policy, and how to transfer your existing policy to your new vehicle.
What is the California car insurance grace period?
California offers drivers a 30-day grace period when purchasing a new vehicle. This means you have exactly 30 days after buying a new car to gather insurance
quotes
, purchase a new policy, and provide proof of coverage to the California Department of Motor Vehicles (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 extended to 45 days—however, your individual insurance company may enforce its own rules as well.
Keep in mind that this grace period doesn’t cover you during an at-fault accident, so you’re still putting yourself at risk by driving around without automobile insurance, as you’ll have to assume full financial responsibility if you cause a crash.
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When do you need insurance coverage for a new vehicle?
Per California State law, all vehicles require active insurance coverage and drivers who are uninsured face significant consequences. Insurance requirements like this are common but vary from state to state.
- Bodily injury liabilityinsurance: $15,000 per person and $30,000 per accident
- Property damage liabilityinsurance: $5,000 per accident
Collision coverage
, comprehensive coverage
, and uninsured motorist coverage
are not required by the state but may be mandated by your lender if you finance your new vehicle. If you do not already own an insured vehicle, you will have 30 days from the date of purchase before you’re required to show proof of insurance to the DMV.
However, keep in mind that if you finance a vehicle, the lender may require proof of insurance before you are able to drive away in your car.
The dealership may be willing to help you with sorting out the insurance and registration details for your new vehicle. Either way, they’ll be sure to let you know when you can legally drive your car off the lot, and exactly what your next steps will be.
If you already own a vehicle and have an existing insurance policy, you will need to update your insurance policy to add on (or change over to) your new vehicle in a timely manner as well. California has a 45-day grace period in these circumstances, but your insurer may also have its own grace period, which will vary from company to company.
How do you transfer an old policy to a new car?
If you’re already a policyholder,
transferring your existing coverage to a new car
is quite simple, just contact your insurance provider and they will assist you with the process. Some car insurance companies even allow you to do the process online.Keep in mind that your insurance costs may change when transferring your policy to a new car. This is especially true if you adjust the types of coverage that you’ll be paying for. For example, if your new lender requires a
full-coverage policy
, and you previously only paid for minimum coverage, your auto insurance rates will definitely go up. However, transferring your existing policy may not be the best way to secure
cheap car insurance
rates. In fact, you may be able to lower your insurance premiums, lessen your deductible
, or enhance your coverage by switching companies. Comparison shopping with super app Jerry
makes shopping for a new plan fast and easy. Is there a car insurance grace period for used cars?
Yes—the 30-day grace period is exactly the same for brand-new and used cars in California.
Banks may impose their own rules on financed vehicles, but if you pay for a used car out of pocket, you’ll only have to adhere to state laws.
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Can you drive a new car home without car insurance?
Sometimes. Per California State law, there is a 30-day grace period after purchasing a vehicle, during which you are required to buy a car insurance policy and provide proof of coverage to the DMV. If you pay for your new car out of pocket, you’ll only have to adhere to these state laws.
However, if you use a lender to finance your vehicle, you may have to agree to certain additional restrictions. For example, most banks require buyers to provide proof of full-coverage car insurance before they’re able to drive their vehicles off the lot.
What are the penalties for driving without car insurance?
Getting caught without car insurance—after the 30-day grace period—in California can result in a number of penalties. The penalties vary depending on your circumstances—for example, they’ll be more severe if you’re involved in a serious traffic accident, rather than if you were pulled over for a minor traffic violation.
California may charge you a fine ranging from $100 to well over $1,000, impound your vehicle, or even suspend your driving privileges for up to four years if you're a repeat offender.
If you’re caught without insurance during the 30-day grace period, that’s okay! However, if you’re in an at-fault accident during this time, you will be fully financially responsible for any damage you cause.
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