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7+ years in personal finance writing
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Licensed auto and home insurance agent
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Licensed property and casualty insurance agent
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NPN: 21630969
Updated
When you buy a car in Pennsylvania, your current car insurance policy may temporarily extend coverage. This is known as a “grace period,” and coverage applies for a short time — typically between seven and 30 days.
All Pennsylvania drivers must have insurance, and a grace period allows you to legally drive your new car right away.[1]
Whether you have a grace period depends on your specific auto insurance policy. A new-car grace period isn’t automatically granted or guaranteed by state law.
You’ll need to check with your current insurance company before buying a car to see if a grace period applies.
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If your auto insurance policy has a grace period for a new car, coverage typically extends for between seven and 30 days. Contact your agent to confirm whether your policy has a grace period and verify how long it lasts.
Even if you’re relying on a grace period, the Pennsylvania Department of Transportation (PennDOT) requires you to add your new vehicle to your policy within 14 days of purchase.[2]
Remember that a grace period applies only if you have an active policy. If you canceled your auto insurance policy after selling your previous car, there’s no temporary coverage for your new car.
Situation | Typical Grace Period in Pennsylvania |
|---|---|
| Adding a new car | Seven to 30 days. The same amount of coverage you have on your existing policy temporarily extends to your new car. |
| Replacing a car | Seven to 30 days. If you cancel your existing policy before replacing your car, there’s no coverage and no grace period. |
| No existing policy | No grace period |
No, you don’t automatically have coverage when you buy a new car in Pennsylvania. You’ll need insurance to legally drive your new car.
Your new car may have coverage under a grace period specified in your existing insurance policy. Check your policy or call your insurance agent.
While grace periods can last up to 30 days, they can also be as short as just a day or two, depending on the insurer.
It’s important to understand what coverage applies during your grace period, assuming you have one. Typically, the same coverage you have with your existing policy extends to your new car.
This means if your existing car insurance policy includes comprehensive and collision coverage, those coverages may extend to your new vehicle during the grace period. But if you have an existing liability-only policy in Pennsylvania, your new car will also have liability-only coverage during the grace period. This includes medical benefits, bodily injury, and property damage liability.[3]
If you’re adding a new vehicle to your policy rather than replacing one, your insurer may provide a shorter grace period.
Car buyers without an existing car insurance policy must purchase at least liability insurance before they can legally drive their newly purchased vehicle. You’ll need to provide the insurer with the car’s model year and vehicle identification number (VIN), which is on the car’s title, to purchase a policy.
Dealers may also require proof of insurance before you drive off the lot. If you finance your new car, your lender will likely require you to have a full-coverage policy, including comprehensive and collision insurance, to protect its interest.[4]
Pennsylvania law requires you to add your new vehicle to your insurance policy within 14 days of purchase.
If you have a grace period, your new car will have at least liability coverage during this time. But if your existing policy includes full coverage, it may also extend to your new car.
Check your policy or call your insurance company to see whether you have a new-car grace period in Pennsylvania.
A grace period is helpful while you’re transitioning vehicles. Even so, it’s not difficult to add a new vehicle to your insurance. Here’s how:
Gather your information. You’ll need to provide your new car’s VIN, make, model year, and whether it has any safety features. Your insurer will ask how many miles you expect to drive the car each year, who will be driving it, each driver’s name and license number, and information about each person’s driving history.[5]
Call your insurance company or use the portal/mobile app. Many insurance companies allow you to add vehicles to your policy online. If you have questions, though, it’s helpful to talk to someone on the phone.
Choose your coverages. Lenders typically require full coverage for leased vehicles or cars with loans. In addition to liability insurance, Pennsylvania requires drivers to have medical benefits coverage.
Ask about a multi-vehicle discount. Most companies provide a discount for insuring more than one car on a policy.
Download or display your proof of insurance. You may be able to add your vehicle insurance card to your mobile wallet. But it’s also a good idea to have an insurance card in the glove compartment.
PennDOT is serious about enforcing its insurance requirement. Your new car needs to have its own insurance policy before your grace period ends or 14 days after you purchase the vehicle — whichever comes first.
If you have a coverage lapse in Pennsylvania, the state may suspend your vehicle registration for three months, although you can avoid this by paying a $500 civil fine. You’ll also need to pay a restoration fee and submit proof of insurance to register your car again.[1]
If your coverage lapse was 30 days or less and you submit an affidavit that you didn’t drive the car during that time, you can avoid the suspension.
If a police officer catches you driving uninsured, the state can suspend your license for three months, assess a $300 minimum fine, and suspend your vehicle registration. You’ll then need to pay a separate restoration fee to reinstate your license.[6]
Not only that, but if you fail to add your new car within the grace period, you’ll have no coverage if you’re involved in an accident. Coverage lapses also go on your insurance record, which may lead to higher rates.
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Take the following proactive steps to ensure your new car has coverage without any gaps:
Call your insurance company in advance. You can review your grace period details and even add your new car to your policy before you drive it off the lot.
Set a conservative coverage start date. The cost of a few extra days of overlapping insurance coverage is minimal compared to the fallout from a coverage gap.
Note the VIN of the vehicle you’re buying. Having the VIN on hand can be useful for running insurance quotes, and it’s essential when adding the new car to your insurance policy.
Don’t use your grace period if you don’t need to. A grace period is useful if you’re buying a car on the weekend, but you don’t stand to gain much from using it. Whenever possible, it’s best to have your new-car insurance policy in place before you take possession of your car.
Find answers below to frequently asked questions about grace periods for new cars in Pennsylvania.
No. You must have insurance to drive a new car in Pennsylvania. Your insurance company may temporarily extend your existing coverage to your new car. Contact your insurance agent to be sure.
Pennsylvania drivers have 14 days from the date of purchase to add a new car to their insurance policy. During that time, you can register the car as long as there’s an active auto policy in the same name as the one listed on the car’s title.
If your car is registered, you must have insurance for it. If you don’t drive your car at all, you can go 30 days without insurance in Pennsylvania. But if the police catch you driving without insurance, it can fine you and suspend your driver’s license and vehicle registration. Turning in your license plates immediately after you cancel your insurance prevents this.
If you get into an accident during the grace period, you’ll have coverage according to the terms of the policy’s grace period. The same coverages that you have on your existing policy typically extend during the grace period.
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7+ years in personal finance writing
Small business blogger
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
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