State Farm New Car Insurance Grace Period: How It Works

When you purchase a new vehicle, having continuous auto insurance coverage is crucial. Even a brief lapse can lead to sky-high rates down the road.

That’s why many top insurers like State Farm offer new car grace periods. This gives existing customers time to officially add their new vehicle to their policy without any gaps in coverage.

So what is State Farm’s new car grace period, who qualifies, and how does it work? This article provides complete details on State Farm’s temporary coverage for new vehicles.

What is State Farm’s New Car Grace Period?

State Farm provides a 14-day grace period for new and replacement vehicles.

During this 14-day window, existing State Farm auto insurance customers can drive their new car knowing it is covered under their current policy, even before officially adding it.

This gives State Farm policyholders time to contact their agent and formally update their policy to include the new vehicle, without the stress of lapsing coverage.

The new car will automatically be insured for up to 14 days for coverages and limits matching the customer’s existing auto policy.

For example, if you have collision and comprehensive coverage with a $500 deductible on your current car, the same will apply to the new vehicle during the grace period.

Who Qualifies for State Farm’s New Car Grace Period?

To qualify for State Farm’s 14-day new vehicle grace period, you must:

• Currently be a State Farm auto insurance policyholder
• Have an active State Farm policy at the time you acquire the new vehicle
• Add the new vehicle to your existing policy within 14 days

This grace period only applies to existing State Farm customers. It does not apply to new customers purchasing a State Farm policy.

Drivers who do not yet have active State Farm insurance will need to purchase a brand new policy when they obtain a vehicle. The policy must be in force the same day as taking ownership.

How Does State Farm’s Grace Period Work?

Here’s how you can take advantage of State Farm’s new car coverage grace period:

1. Purchase your new vehicle

Finalize the sale and take ownership of your new car. Make sure to obtain documentation like the bill of sale, title, registration, etc.

2. Drive your new car during the 14-day grace period

You can immediately drive your new vehicle knowing it is covered by your existing State Farm policy for up to 14 days. Coverage matches your current policy limits.

3. Formally add the car within 14 days

To continue coverage beyond 14 days, you must contact State Farm to officially add the new car to your policy.

You can add the vehicle easily online, through the mobile app, or by calling your agent or the customer service line at 800-782-8332.

Be prepared to provide details like the VIN, year, make, model, and mileage.

4. Consider extra coverage for the new vehicle

During the grace period, your new car is covered at your existing liability limits. But you may want to increase limits or add collision, comprehensive, roadside assistance, etc.

Discuss optional coverage with your agent when adding the new vehicle to make sure you have the protection you need.

What’s Covered During State Farm’s Grace Period?

State Farm’s new vehicle grace period provides automatic temporary coverage matching your current policy’s:

• Liability limits
• Uninsured/underinsured motorist coverage
• Medical payments or personal injury protection
• Comprehensive deductibles
• Collision deductibles

The new car is covered for these up to the limits that apply to your existing insured vehicle.

For example, if you have:

• $100,000/$300,000 bodily injury liability
• $50,000 property damage liability
• $500 collision deductible

…then those same limits automatically apply to the new car for 14 days.

However, optional coverage like rental reimbursement or roadside assistance will only apply if you had those coverages selected on your previous vehicle.

Liability coverage is essential, since an at-fault accident can easily exceed $100,000 in injuries or damages. Having automatic liability protection gives peace of mind when first driving your new car home from the dealership or showroom.

Adding a New Car to Your State Farm Policy

To continue coverage beyond the 14-day grace period, you must formally add and rate the new vehicle under your existing State Farm policy.

Start this process as soon as possible. Don’t wait until the last minute of the grace period.

Be ready to provide:

• Year, make, model
• Vehicle Identification Number (VIN)
• Mileage
• Purchase date
• Garaging address

Your agent will determine how the new vehicle impacts your auto insurance costs. Rates may increase or decrease, depending on the characteristics of your new car.

Higher-value, higher-performance vehicles typically cost more to insure. But newer cars with advanced safety tech can qualify you for discounts to help offset the increase.

Discuss whether you need to modify your liability limits, add extras like rental coverage or roadside assistance, etc. to fully protect your new asset.

And be sure to take advantage of all available multi-car, safe driver, and other discounts.

What If I Miss the 14-Day Deadline?

It’s crucial to formally add your new vehicle within State Farm’s 14-day grace period.

If you miss the deadline, your new car will not be covered after the grace period ends. Driving uninsured can lead to severe legal and financial consequences.

Adding the car late could also be considered a lapse in coverage by State Farm, potentially resulting in much higher rates.

So be sure to mark your calendar and add the new vehicle to your policy within 14 days. Don’t risk a coverage gap or penalty by delaying.

Getting Insurance on a New Vehicle Without a Grace Period

Drivers who don’t currently have active State Farm insurance cannot take advantage of the 14-day grace period.

If you’re purchasing a new policy, you must have coverage in place the moment you take ownership of your new car. Otherwise you’ll be breaking state auto insurance laws by driving uninsured.

Here are some tips for new-buyer auto insurance:

• Research quotes and providers in advance of your vehicle purchase
• Compare policies to find the right coverage at the best rate
• Choose a start date for your new policy that matches your car’s purchase date
• Provide the VIN, mileage, usage details, and all other rating factors upfront for an accurate quote
• Have your credit card on hand to make the full down payment when you finalize the policy
• Print proof of insurance to show the dealership before driving off the lot

Purchasing auto insurance takes some preparation for new car buyers without a grace period safety net. But taking proactive steps ensures you’ll drive off legally insured.

The Bottom Line on State Farm’s New Car Grace Period

Having continuous auto insurance when transitioning to a new vehicle is extremely important. State Farm’s 14-day grace period for existing policyholders helps avoid gaps.

Their new car policy grace period offers temporary coverage while you finalize adding the replacement or additional car. You’ll have the peace of mind of automatic liability and physical damage protection right away.

Just be sure to formally add the new vehicle within the 14-day window. Then discuss optional coverage and discounts with your agent to customize your policy.

With State Farm’s grace period, you can enjoy your new car without the stress of lapsing insurance.