Last Updated on December 9, 2025

Getting a new car is exciting—but you also want to make sure you’re insured the moment you drive it off the lot. Every state requires a minimum amount of liability insurance, some require uninsured motorist coverage, and if you finance the car, your lender will have its own coverage requirements as well.

Key Takeaways

1. Most policies extend some coverage to a newly purchased car for a short time, but it’s often limited and may only match your old vehicle’s coverage.
2. If your old car had liability-only coverage, your new car will also only be liability-covered until you explicitly add full coverage.
3. It’s smart to get insurance quotes on different models before you buy, since premiums can vary widely by vehicle.
4. Always update your policy immediately—either online or by calling your agent—to ensure your new car meets state and lender requirements from the moment you drive it off the lot.

Does My Current Policy Cover My New Car?

Most auto insurance policies automatically extend some coverage to a newly acquired vehicle for a short period (often 7–30 days), especially for liability. That means in many cases you’re not driving completely uninsured the second you leave the dealership.

However, there are two big caveats:

• If you move from a 10-year-old car to a brand new one, your existing limits may not be adequate for the much more valuable vehicle.
• If you currently carry liability-only coverage, that’s all you’ll have on the new car until you formally add it to your policy—meaning no collision or comprehensive protection for your new investment.

You should confirm how your specific policy handles new-car coverage and make changes as soon as possible.

Before You Buy the Car

It’s smart to think about insurance before you commit to a specific vehicle. If you’re comparing several different makes and models, ask your insurer for quotes on each one.

Insurance premiums can vary widely depending on:

• Vehicle value and repair costs
• Safety ratings
• Theft risk
• Engine size and performance

If you’re on a budget, the cost of insuring the car should be part of your decision—not just the purchase price or monthly payment.

Changing Your Policy Online

Most insurers now offer online account portals where you can add or remove vehicles and adjust coverage. If you know exactly what you need, this can be a quick way to transfer coverage to your new car.

When updating online:

• Add the new car to your policy as soon as possible after purchase.
• Remove the old car if you sold it or traded it in.
• Keep coverage on the old car if you still own it, even if you’re not driving it—state law usually requires at least liability coverage on any registered vehicle.

Do not remove the old car from your policy until it’s officially sold or transferred out of your name.

Contacting Your Agent

If you’re unsure what coverage you need or want advice, it’s better to call your agent or insurer directly rather than making changes on your own.

Ideally, contact your agent before you leave the dealership with your new car. Calling right away ensures that you’re covered from the moment you drive off the lot. Your agent can:

• Update your policy immediately so coverage is in place.
• Explain any premium changes and when payment is due.
• Help ensure the coverage meets your lender’s requirements if the vehicle is financed.

If your financing contract requires specific limits or coverages (such as full coverage with certain deductibles), the dealer’s finance representative can tell you exactly what’s needed while you’re on the phone with your agent.

Does Your Policy Start Over?

In most cases, transferring insurance to a new car does not restart your policy term. Your current six-month or one-year policy period usually continues, with the new car listed in place of (or in addition to) the old one.

This can be a good time to plan ahead. Once your new car is on your existing policy:

• Check when your current term ends.
• Before renewal, shop around for quotes to see if another company offers better rates for your new vehicle.

Frequently Asked Questions About Transferring Auto Insurance

The Bottom Line

Transferring auto insurance to a new car is usually straightforward. Whether you do it online or through your agent, the key is to act quickly so your new vehicle is properly protected and complies with state law and any financing requirements.

Think about insurance before you buy, confirm how your current policy treats new cars, and update your coverage as soon as you make the purchase. That way, you can enjoy your new ride knowing you’re fully covered from day one.