Buying a new car is always exciting! But it also means you need to update your auto insurance policy to get proper coverage. Thankfully, State Farm provides a grace period that gives you some time to get your new wheels insured.
How long is State Farm’s new car grace period? What coverages apply during this time? And when exactly do you need to contact your agent to officially update your policy?
This article provides a comprehensive overview of State Farm’s new vehicle grace period, so you can feel confident your new car is protected while you finalize insurance.
What is State Farm’s Grace Period for New Cars?
When you purchase a new vehicle, your existing State Farm auto policy will automatically cover the new car for a short grace period after you take possession.
The exact length of the new car grace period depends on your state. But it’s typically around 5-30 days. During this time, State Farm extends your current coverages and limits to the additional vehicle.
This grace period is meant to provide flexibility so you don’t have to rush to update your insurance the minute you drive a new car off the lot. You have some breathing room to enjoy your new ride before officially modifying your policy.
But it’s important to understand that the grace period is not unlimited. You do need to contact your State Farm agent to formally add the car to your policy before the grace period ends. Otherwise you may be driving uninsured.
What Coverages Apply During the Grace Period?
The coverages that apply to your new car during the grace period depend on your existing State Farm policy. Any coverages you have on your current vehicle extend to the newly acquired car, subject to your limits.
For example, if you have:
- 100/300/100 liability limits
- $500 collision deductible
- $250 comprehensive deductible
Then those same coverages and limits would apply to the additional car until you officially update your policy.
Any drivers listed on your policy are also covered to operate the new vehicle during the grace period. The car simply becomes an additional insured vehicle under your current State Farm policy for the designated timeframe.
However, note that comprehensive and collision coverage for a new car may be subject to differences in deductible or limits. Check your State Farm policy booklet wording for specifics in your state.
And if you don’t currently carry comp/collision on your existing car, the new vehicle would not automatically get this coverage during the grace period. Other gaps in coverage can also apply. So it’s important to update your policy soon.
When Should You Contact Your Agent?
To avoid any coverage issues, you’ll want to contact your State Farm agent to update your auto policy well before the new car grace period expires.
Ideally, reach out 1-2 weeks after purchasing the new vehicle. This ensures you have plenty of time to officially modify your policy.
Your agent can easily add the car’s year, make, model and VIN. They’ll also review your coverages and limits to make sure you have appropriate protection. Expect your premium to increase since you now have an additional vehicle on your policy.
If you wait until the grace period is nearly up, it leaves little room for error. Any delay adding the car could result in a coverage lapse. Don’t take chances – update your policy as soon as realistically possible.
And until your new car is officially added, continue driving your previous vehicle when feasible. This minimizes risk if an accident occurs before the new vehicle is insured.
Why Does State Farm Offer a Grace Period?
You might be wondering why State Farm even offers a grace period for new cars. Wouldn’t requiring same-day updates provide better protection?
State Farm’s grace period offers a few advantages:
Convenience – Immediate updates can be difficult if purchasing a car after business hours, on weekends or during holidays. The grace period removes this hassle.
Flexibility – Driving straight from the dealership to your agent’s office is inconvenient. The grace period gives breathing room.
Peace of mind – Knowing you have some coverage immediately can provide confidence and let you enjoy your new vehicle.
Alignment with state laws – Grace periods help State Farm comply with state regulations related to newly acquired car coverage.
Overall, the new car grace period aims to strike a balance between convenience and ensuring continuous auto insurance protection. But it’s designed as short-term flexibility, not a coverage loophole. You do need to update your policy soon after buying a car.
What is Needed to Update Your State Farm Policy?
Contacting your State Farm agent by phone or online chat is the easiest way to add a new vehicle to your policy. You’ll simply need to provide a few details:
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Year, make and model – This identifies the new car. Confirm the VIN too if possible.
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Mileage – Your annual mileage impacts rates, so share an estimate for the new vehicle.
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Usage – Let your agent know if this is a primary, secondary or occasional use car. Different rates apply.
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Garaging address – Where you park the new vehicle overnight matters for premiums.
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Lienholder – If you have an auto loan or lease, provide the lienholder name. They will need to be listed on your policy.
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Coverages desired – Review your coverage needs with your agent. A different deductible or new coverages like GAP may make sense.
With this information, your agent can quickly update your policy to officially add the new car. Soon after, you’ll receive updated insurance documents reflecting the change.
And remember to swap your old car’s insurance ID cards with new ones showing the recently added vehicle. Avoid coverage issues by carrying proof of insurance for the correct vehicle.
Key Takeaways on State Farm’s New Car Grace Period
State Farm’s grace period allows some flexibility when insuring a new vehicle. Key points to remember:
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The grace period extends your existing coverages for 5-30 days, depending on your state.
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Contact your agent to add the car 1-2 weeks after purchase to avoid issues.
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You need to formally update your policy before the grace period ends.
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Work with your agent to review coverages when adding the new car.
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Carry updated insurance ID cards for the recently added vehicle.
Enjoy your new ride knowing you have coverage during State Farm’s grace period. Just be diligent about contacting your agent in a timely manner. With a few simple steps, you’ll have seamless protection from day one with your new wheels!
Frequently Asked Questions about State Farm’s New Car Grace Period
How long is the new car grace period with State Farm?
State Farm’s grace period for newly acquired vehicles is between 5-30 days depending on your specific state. Check your policy documents for details on the timeframe in your location.
What coverages apply during the grace period?
Your existing policy coverages and limits extend to the new car during the grace period. This includes liability, collision, comprehensive and any other coverages you currently carry.
Can I drive the new car before updating my policy?
Yes, you can drive the new vehicle during the grace period. But limit driving your old car as much as possible to minimize potential gaps in coverage.
Will my rates increase after adding the new car?
Most likely yes. Insuring an additional vehicle usually results in a premium increase. But discuss discounts and savings opportunities with your agent.
What happens if I miss the deadline to update my policy?
Driving past the grace period without updating your policy means you are operating the new vehicle without insurance. This puts you at significant financial risk in the event of an accident or claim.
How do I prove I have insurance during the grace period?
Your existing insurance card provides proof of coverage that applies to the new car during the grace period. But get an updated card from your agent once the vehicle is officially added to your policy.
Can I add a new car online instead of calling my agent?
You can start the process of adding a vehicle online. But contacting your agent directly is best to ensure seamless coverage. Discuss coverages and discounts to get the optimal protection for your new car.
Getting insurance for a new car doesn’t need to be a hassle thanks to State Farm’s grace period. Reach out to your agent soon after buying a vehicle, and enjoy your new ride with peace of mind.