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When you buy a new car, you need to make sure it’s insured before you drive it. Many insurance companies have a grace period that extends your existing policy to your new car.
If you’re buying a new or used car in Ohio, you may have a grace period under your current insurance policy.
Grace periods vary by insurer but typically last between seven and 30 days. This grace period applies only if you have an existing car insurance policy, and Ohio doesn’t offer any guidelines or guarantees.
Check with your insurer to see if a grace period applies and how long it lasts.
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No laws exist in Ohio regarding car insurance grace periods. Your grace period when buying a new car varies by insurance company.
Ohio law requires all drivers to have valid insurance to operate a car in the state. The minimum liability requirements in the Buckeye State are:[1]
$25,000 for injury or death to one person
$50,000 for injury or death to two or more people
$25,000 for property damage per accident
Situation | Typical Grace Period in Ohio |
|---|---|
| Adding a new car | 7–30 days |
| Replacing a car | 7–30 days |
| No existing policy | No grace period |
If you already have car insurance, your insurer may automatically extend coverage when you buy a new car in Ohio. But if you don’t have an existing insurance policy, you’ll need to buy one to drive your new car legally in the Buckeye State.
The coverage you’ll have when you buy your new car depends on your existing policy and coverage type. If you have liability-only insurance, the same limits will apply to your new car.
Similarly, if your existing policy has full coverage, your new car may have full coverage during your grace period — but there’s no guarantee.
Your exact coverage during your car insurance grace period depends on your policy and insurance company. Generally, your coverage extends to your new car, whether you had liability only or full coverage.
Check with your insurance company directly to ensure you understand what coverage you have during your grace period.
No matter how long your grace period is, it’s smart to add your new car to your Ohio car insurance policy as soon as possible. Follow these steps:
Gather vehicle information. This includes the vehicle identification number (VIN), make, model, and license plate number.
Check your current coverage. If your new car replaces your current vehicle, your insurer will typically transfer your existing coverage types and limits to the new vehicle. If you finance or lease your car, your lender will typically require you to carry comprehensive and collision coverage, and possibly gap insurance.
Ask about discounts. Most insurers offer discounts for having multiple policies, remaining accident-free, driving fewer miles, or taking a defensive driving course. Ohio law requires insurers to offer a discount to drivers aged 60 to 70 who pass an accident-prevention course.
Shop around and compare car insurance quotes. You may find a similar policy with a lower premium from another insurance company. Get at least three quotes for the same coverage amounts to find the best insurer for your needs and budget.
If you fail to add your new car to your policy before the grace period ends, you risk having no coverage if you’re in an accident. Not only that, but the state may suspend your driver’s license if you can’t provide proof of insurance.
The suspension remains in place until you pay a reinstatement fee of $40 and obtain an SR-22 certificate of insurance.
You must carry an SR-22 form for one year after every noncompliance suspension. A second offense within one year will get you a one-year license suspension with a $300 reinstatement fee, and a third offense results in a two-year suspension with a $600 reinstatement fee.[2]
Once you reinstate your license, you may see an increase in your car insurance premiums.
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Ohio’s financial responsibility law requires drivers to carry a valid insurance policy to legally drive in the state. Follow these tips to avoid a coverage gap when you buy a new car:
Contact your insurer before purchase. Let your insurer know you plan to buy a new car, and ask if there’s a grace period for which your current policy covers the new car.
Set your coverage start date in advance. If you know exactly when you’ll buy the car, set your policy’s effective date ahead of time.
Add the new car to your policy at the dealership. Many major insurance companies have user-friendly apps that let you buy a new policy or add a car to an existing policy. You can often do this at the dealership while finalizing your purchase.
Shop for quotes in advance. Get several quotes before you buy your new car to speed up the process once you seal the deal.
The answers to the following frequently asked questions can help you better understand car insurance grace periods in Ohio.
No. You can’t legally drive a new car home from a dealership or private seller without insurance. Your insurer may offer a grace period during which your new car has coverage. But it’s best to add a new car to your policy as soon as you buy it to avoid a lapse in coverage.
In many cases, yes. Most insurers have a grace period of seven to 30 days. Verify with your insurer whether you have a grace period and your coverage details before driving a new car home.
It depends on the insurance company. Generally, you have seven to 30 days to add a new vehicle to your insurance policy.
No. Ohio doesn’t require drivers to have uninsured motorist (UM) coverage. If your insurer offers it, you can buy coverage limits that match your liability coverage limits.[3]
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16+ years in personal finance and insurance writing
Certified Financial Education Instructor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
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