Is my new car insured when I purchase it?

Short answer: it depends—and this is one of those things that trips a lot of people up.

Here’s how it usually works:

If you already have auto insurance

Many policies automatically cover a newly purchased car for a short grace period (often 7–30 days), but:

• Coverage is usually limited (sometimes only liability)

• You must notify your insurer within that window

• The coverage often mirrors the car it’s replacing, not necessarily full coverage

So yes, you might be insured—but it’s temporary and conditional.

If this is your first car / you don’t have insurance yet

Then no, the car is not insured automatically just because you bought it.

• Dealers may require proof of insurance before you can drive off

• If they let you leave without it, you’re still legally on the hook

What about dealer insurance?

• Dealerships do not insure your car

• Any “coverage” they mention is usually a warranty, not insurance

The safest move (strongly recommended)

Call or log into your insurer before or the day of purchase and add the car:

• You avoid coverage gaps

• Lenders usually require comprehensive + collision

• It often takes 10 minutes and zero stress