The grace period to add a new vehicle to a preexisting auto insurance policy in Colorado is two to 30 days, depending on your insurance company’s policy and the type of coverage you need. If you do not have an existing policy, you’ll need to buy car insurance
before you drive your new car off the lot. You need car insurance to drive your vehicle if it’s registered in Colorado, but you may have a few days to add a new car to your car insurance policy depending on the circumstances. These grace periods are determined by your provider—not your state’s laws—and a few factors determine how long they last.
For example, your car may need more coverage if you’re paying for it with a car loan
. Your car insurance company will often extend this coverage in good faith, but you’ll need to update your policy sooner than later. We’re here to make sure you don’t wait too long. Read on for a guide to the new car insurance grace period in Colorado. Is there a car insurance grace period for new cars in Colorado?
Technically yes, but it’s up to your insurance provider. Colorado law does not set any restrictions or regulations on grace periods for adding a new car to an existing car insurance policy. Your insurance agent can give you the most accurate information on your provider’s grace period policy.
Car insurance grace periods determine how long you can drive a new vehicle before adding it to an existing car insurance policy. These can last anywhere from two to 30 days—if your insurance company offers one at all.
During this time, your insurance company will extend car insurance coverage to a new uninsured motor vehicle in good faith, but you have to add your new car to your policy by the end of the grace period.
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When do you need to buy car insurance in Colorado?
If you don’t have any car insurance at all when you purchase a new car, you’ll need to purchase a new policy before you leave the dealership. You only need a little information to get car insurance before buying a car
—like the vehicle identification number (VIN) and your driver’s license. In most cases, you can set up same-day auto insurance
right before you sign the final paperwork to purchase the car. However, you may have a little extra time to buy new car insurance if you already have insurance coverage for an old car in the same state.
Most insurance providers give you seven to 30 days to add a new vehicle to your policy if you only need liability coverage
. You’ll still need to provide proof of insurance
when you purchase your car, but it doesn’t necessarily need to include the new vehicle yet. The grace period typically reduces to two to four days if you need full coverage for your new car. Many lenders require full-coverage policies—which include comprehensive
and collision coverage
in addition to Colorado’s minimum requirements for liability insurance. These types of insurance are riskier for your insurance company to extend in good faith, hence the shorter timeframe to add the car to your policy. What are the insurance requirements?
Colorado car insurance laws
require you to carry car insurance that includes at least the following amounts of liability coverage for each insured vehicle:$50,000 of bodily injury liability coverage per accident
You’ll need to show proof of insurance that meets these minimum requirements whenever you purchase a new vehicle, as well as if you’re ever pulled over or involved in a car accident.
Colorado is an at-fault state, meaning these minimum coverage limits apply to damages that you may cause other drivers in an accident. It’s up to you if you want to buy additional types of coverage that protect you and your vehicle—like uninsured/underinsured motorist coverage
, personal injury protection (PIP)
, collision coverage, and so on. MORE: How to estimate car insurance before buying a car
Penalties if you drive without auto insurance in Colorado
There are two major penalties to consider when driving uninsured: penalties with the state and penalties with your insurance company.
Colorado imposes stiff penalties for driving with no car insurance
, including the following: License suspension until you submit proof of insurance to the DMV or court
Up to 40 hours of community service
And that’s only for the first offense! You’ll also get four points added to your license, and those driver violation points will raise your insurance rates for as long as they stay on your record.
If you fail to add a new car to your policy before the end of your insurance company’s grace period, you’ll almost certainly be facing an insurance lapse
, as well. Even if you don’t get penalized by the state, you’ll face high-risk auto insurance rates
that are much more expensive than the average premium. MORE: How to find the best cheap car insurance
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