Car Insurance Grace Period in Missouri: Are You Covered After Buying a Car?

What is a new car insurance grace period?

A new car insurance grace period refers to the amount of time that your current insurance policy extends to a newly purchased vehicle. If you’re buying a new or used car in Missouri, you may have a grace period with your auto insurance company.

Grace periods may provide temporary coverage for a new vehicle for seven to 30 days. But it’s important to note that grace periods aren’t a given and can vary by insurer. Before buying a car, confirm the existence of a grace period first. Additionally, grace periods are only available to existing policyholders with auto insurance.

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How long is the grace period for a new car in Missouri?

The car insurance grace period in Missouri is 30 days.^[1] The Missouri Department of Insurance states that insurance companies must provide 30 days for policyholders to report a newly acquired vehicle and offer coverage, unless the company doesn’t insure all owned vehicles the policyholder has.

If you’re buying a new or new-to-you vehicle in Missouri, it’s always best to contact your insurance company to ask about a grace period. Specifics may vary depending on the company, so it’s worth confirming.

Situation	Typical Grace Period in Missouri
Adding a new car	30 days
Replacing a car	30 days
No existing policy	No grace period

Are you automatically covered when you buy a new car in Missouri?

You’re not automatically covered when you buy a new car in Missouri. It depends on whether you have an existing policy as well as the coverage type. If you have a current auto insurance policy, you may have a grace period that extends that coverage to the new car.

It’s important to note that only your existing coverage amount extends to the new vehicle. For example, if you have liability insurance, then only liability insurance will cover any new vehicle purchase.

That means you wouldn’t automatically have full coverage, which includes collision and comprehensive coverage. If you’re taking out an auto loan on your new car, lenders typically require full coverage.^[2]

Car insurance grace periods can also vary depending on the situation. If you’re replacing a car and have an existing policy, that coverage may extend to the new car, based on the provisions of your policy.

If you’re going from a one- to two-car household and adding another vehicle to your policy, the broadest coverage may also apply during the grace period. Your insurance premiums will likely increase because you’re insuring another vehicle.

In these cases, grace periods may only apply if you insure all of your vehicles with the same company and you’re insuring a similar type of vehicle. So, if you have auto insurance on car one with one company, but coverage for car two with another, you may not have coverage. If you traded in your sedan for a motorcycle, your insurer may not have a grace period.

Missouri drivers with no car insurance don’t have access to a grace period. In this case, purchasing a new car typically means buying insurance before you drive off the lot. The dealership will likely require proof of insurance.

What does new car insurance cover during the grace period?

If you have an existing liability-only policy, that coverage may transfer to the new car during an eligible grace period, based on the terms of your agreement. Full coverage doesn’t always automatically transfer. But in general, if you add a car to insurance, then the broadest coverage available may apply, per the declarations listed in your policy.

Liability coverage doesn’t have a deductible, but collision and comprehensive coverage do. Specific deductibles and limits may differ during the grace period, per the terms of your policy.

How to add a new car to your Missouri insurance policy

Follow these steps to add a new car to your Missouri insurance policy:

1. Contact your insurance company right away. Let them know you’ve purchased a new car and would like to add it to your existing policy. Tell them if the car is replacing your old one or will be an additional car covered under your policy.

2. Provide details. Typically, you’ll need the vehicle identification number (VIN), make, model, year, estimated mileage, and license plate number, if available.

3. Confirm the coverage start date. Ask the insurance company when coverage begins and if there’s a car insurance grace period that applies.

4. Check coverage options. Make sure you have liability coverage with at least $25,000 in bodily injury per person, $50,000 per accident, and $25,000 for property damage liability. Missouri insurance requirements also include uninsured motorist coverage with the same minimum bodily injury liability limits.^[3] If you have a loan, you may need to carry full coverage.

5. Review policy. Confirm that your insurance company added the new vehicle to your existing policy and review applicable limits, deductibles, and coverage options.

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What happens if you don’t add your new car in time?

If you don’t add your new vehicle to your existing car insurance policy during the grace period or obtain coverage, you may face a range of consequences, according to the Missouri Department of Revenue.

• A ticket

• Driver’s license suspension

• Reinstatement fees

• An SR-22, depending on the circumstances

For example, after a first suspension, drivers must show proof of insurance and pay a $20 reinstatement fee.

A first suspension due to an accident requires the same, but also an SR-22 for three years, per Missouri laws. The Missouri Department of Revenue requires proof of insurance to be on file for three years.

Aside from these penalties, a coverage lapse could lead to higher insurance premiums in the future because of the higher risk. Plus, you may be on the hook financially for damage to your or another person’s property if you get into an accident without insurance.

Tips to avoid gaps in coverage when buying a car

To avoid a lapse in coverage when buying a car, here are some recommendations to follow:

• Contact your insurer before you buy a car. To help prevent an insurance lapse, contact your insurer before you buy a car. Ask about a potential car insurance grace period in Missouri. Don’t assume you can get dealership insurance. They often require proof of insurance before leaving the lot.

• Get coverage beforehand. To avoid a coverage gap and its potential consequences, set your coverage start date ahead of time. You don’t need to rely on a grace period and can get insurance from the beginning.

• Don’t cancel until you have a new policy. If you’re replacing your old vehicle and shopping around for new insurance, don’t cancel your policy with the old company until your policy with the new company is effective.

• Get proof of insurance. Once your policy is active, review your coverage and get proof of insurance. Keep your insurance card and vehicle registration in your car if law enforcement pulls you over.

New car insurance grace period in Missouri FAQs