California has three time periods you’d need to take note of when you buy a new or used car and need to insure it:
- How long you have to transfer your previous car’s insurance to your new car. This is usually 7 to 30 days, and failure to add your car could leave you in an insurance lapse.
- How much time you have to inform the DMV that you have insurance for your new car — usually 30 or 45 days, depending on the situation. Failure to comply can result in a suspension of vehicle registration.
- A waiting period before insurance kicks in. For example, a 14-day waiting period means you will have to wait two weeks from buying the policy before you are covered.
How long is a new car covered by insurance in California?
Insurers typically offer a grace period between 7 and 30 days to update your current insurance policy with your new vehicle’s information. Within this grace period, you can drive your new car without updating your insurance. You should check your specific policy for the exact timing because it can vary from company to company.
What if I don’t get car insurance within the grace period?
If you don’t update your insurance by the time the grace period ends, you’ll be in a coverage lapse — which can cause your insurance premiums to rise when you renew your coverage and put you at risk legally and financially speaking.
Can you drive a new car home without insurance?
No, you can’t drive a car you just bought without insurance. All dealerships require proof of insurance before you can drive home with a new car — and even if you’re purchasing from a private seller, driving home without insurance is a major violation of state law.
If you don’t have car insurance coverage when you buy a new car, there is no grace period — you must have an active auto insurance policy in order to drive away from the dealer’s lot.
California DMV registration grace period
Your vehicle registration is subject to suspension if “insurance information is not submitted to the DMV within 30 days of issuance of a registration card upon initial registration or transfer of ownership,” according to the California DMV.
The DMV can also cancel your vehicle registration if your insurance policy is cancelled and a replacement policy is not submitted within 45 days.
Insurance waiting periods in California
Another timeframe that might apply to you involves a waiting period of about two weeks between when you buy insurance and when your policy goes into effect, as The Los Angeles Times reports. California’s Department of Insurance has also received complaints about waiting periods.
Depending on your profile and the insurer, you might be able to get insurance immediately or you’d have to wait. If you have a waiting period, that means you could have no coverage during this period and can’t drive your new car.
Therefore, before you buy a new car, make sure to check if you will be insured on the day you want to drive off the lot. California also has alternative ways you can insure yourself besides buying a motor vehicle liability insurance policy:
- Cash deposit of $35,000 with DMV.
- DMV-issued self-insurance certificate.
For the two methods above, contact the DMV Financial Responsibility Unit at (916) 657-6677 and select Option 3.
- Surety bond for $35,000 from a company licensed to do business in California.
To find a company that issues surety bonds, contact the Department of Insurance online at insurance.ca.gov or by phone at 1-800-927-4357.
Xuyun Zeng is a content strategist with a wide-ranging content background including tech, journalism, cars and health care. After graduating with highest honors in journalism, Xuyun led a newspaper to win eight awards, helped start an award-winning film industry podcast and has written over a hundred articles about cars repair, state laws and insurance. Prior to joining Jerry, Xuyun worked as a freelance SEO consultant with a mission to create the best content that will help readers and grow organic traffic.
Kevin Berry is the Senior Director of Content at Jerry and has been working in the digital content space since 2011 across the car insurance/repair, personal finance, travel and sports industries. Prior to Jerry, Kevin was a content team lead at NerdWallet overseeing the Multimedia Production and Travel Rewards teams. Previously, he worked for NBC Sports, Comcast Cable and Nike. He has a Master`s Degree from Arkansas State and a Bachelor`s from Oregon State University.
Lacie Glover is a Lead Content Strategist with sixteen years’ experience in the insurance category. Prior to Jerry, she spent more than a decade on NerdWallet’s content team writing, editing and then overseeing the auto insurance category, as well as dabbling in other insurance and automotive topics. Prior to her career in the online personal finance content space, Lacie spent time in the hard sciences, in clinical research and chemistry labs. She has a bachelor’s degree from Colorado State University.
