Life can move unpredictably fast. You may move to a new city, switch jobs, or get married all in the span of 30 days.

When you make one of these major life changes, something has to change along with it: your car insurance information. Your auto insurance will need to reflect these changes to be both accurate and legal.

But what happens if you forget to make these changes? That’s where the car insurance grace period comes in. In this post, we’ll discuss everything you need to know about the car insurance grace period, from what it is to how it works.


The car insurance grace period is a set amount of time during which an insurance company will allow a policyholder to change their policy. This grace period exists to give policyholders ample time to update their information and keep their coverage active.

During this time, your current coverage will remain active and any recent changes will go into effect after the grace period has ended.

How Does the Car Insurance Grace Period Work?

It’s important to note that the car insurance grace period only applies to certain types of changes. For example, if you move to a new state, get married, or have a child, you’ll need to update your policy to reflect these life changes.

However, if you simply need to renew your policy or make minor adjustments — such as changing your deductibles — you typically won’t need to worry about the grace period. If you need to change your car insurance policy for any reason, contact your insurer as soon as possible.


When you buy a new car, you’re probably eager to get it on the road as soon as possible. But one important step that shouldn’t be overlooked is getting insurance for your new set of wheels. Some people may think there’s a grace period for getting insurance on a new car, but that’s not actually the case. Though individual insurance carriers may extend coverage from your existing policy for a brief period of time after a new purchase, there are often restrictions on how coverage applies.

In most states, the moment you drive your new car off the lot, it’s legally required to have at least the minimum amount of liability insurance coverage to satisfy state requirements. So if you plan on driving your new car home from the dealership, be sure to have your insurance information handy. If you don’t have insurance and you’re caught driving, you could be subject to a fine or, in some states, have your driver’s license suspended.

Is There A Grace Period For Lapsed Car Insurance?

A lapse in coverage can occur for many reasons, but the most common cause is simply that a policy has ended and the customer has not yet renewed it. A lapse in coverage usually means that the customer has not been keeping up with their payments, which can signify financial trouble.

Since insurance companies are so risk averse, a lapsed policy is a major red flag that the customer may default on their payments in the future. As a result, insurance companies will often charge much higher rates to customers who have lapsed policies. Sometimes, they may even decline to renew the policy at all.

You’ve just bought a new car, moved to a new city, or had another exciting life change…congratulations! But before you take your car out for a spin, don’t forget to factor in car insurance.

Though many people assume they have a grace period after moving or buying a new car before they have to insure it, that’s not always the case. Remember, if you let your policy lapse, you may be required to pay much higher rates when you do finally renew it. (And, in some cases, you may even be declined the renewal altogether!)

The best way to find out whether you have an auto insurance grace period is to give your insurance company a call and speak with an expert. Safe driving!

And if you need help finding the best car insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.