How Long Do You Have to Get Car Insurance After Buying a Used Car?

Short answer: You need car insurance the moment you own a used car. If you already have car insurance, most insurers give you a grace period (typically 7-30 days) to officially add your newly purchased used car to your existing policy.

If you don’t have any car insurance at all? You’ll need to get a policy before you can legally drive your new-to-you car anywhere.

The real timeline: Before you drive, not after

When you buy a used car, auto insurance isn’t optional, it’s the law. You can’t legally drive without it, even for “just getting home.” The good news? Getting covered is faster and easier than you think.

What “immediate” actually means

You need insurance coverage active before you turn the key.

This means:

• Before leaving the dealership if buying from a dealer
• Before driving away if buying from a private seller
• Before your first trip to the DMV to register

Many insurance companies can start your coverage immediately, sometimes within minutes of getting a car insurance quote online.

How to get covered fast

Getting car insurance for your used car doesn’t have to slow down your plans. Here’s how to get covered quickly:

1. Shop for quotes before you buy

The smartest move? Get car insurance quotes while you’re still shopping for your used vehicle. Most insurance providers let you:

• Get quotes without owning a car yet
• Add a car to an existing policy instantly
• Start coverage the same day

2. If you already have auto insurance

Call your insurance company or log into your app. Adding a used car to an existing insurance policy usually takes just a few minutes. You’ll need:

• The car’s VIN number
• Year, make, and model
• Mileage
• Your desired coverage levels and deductible

Many insurance companies can activate coverage immediately over the phone or through their app.

3. If you need new coverage

Don’t panic, getting a new car insurance policy is faster than most people think. You can often get covered within 15-30 minutes online. Here’s what speeds up the process:

• Have your driver’s license ready
• Know the car details (VIN, year, make, model, mileage)
• Decide on coverage levels beforehand
• Have payment info available

4. Emergency situation: Already bought but not insured?

If you bought a used car and don’t have insurance yet, don’t drive it. Instead:

1. Get quotes online immediately
2. Choose a policy with same-day coverage
3. Pay and activate before driving
4. Keep digital proof of insurance on your phone

Some car insurance companies offer instant coverage that starts the moment you pay.

Coverage you need for a used car

The right insurance for your used car depends on its value, your state’s requirements, and how much financial protection you want, here’s how to figure out what makes sense.

State minimum vs. full coverage

Most states require liability insurance at minimum limits. But for a used car, you’ll want to consider:

Liability coverage (required in most states):

• Bodily injury liability
• Property damage liability

Full coverage car insurance (recommended):

• Collision coverage for accident damage
• Comprehensive coverage for theft, vandalism, weather

Additional coverage available for purchase: 

• Uninsured/underinsured motorist coverage (sometimes required by states including Illinois and Indiana) 
• Personal injury protection (PIP) or Medical payments coverage (MedPay) 

How your used car affects insurance costs

Used cars often cost less to insure than new vehicles because:

• Lower cash value means lower comprehensive and collision premiums
• Older cars you own outright may not need full coverage, especially when repair costs would cost more than replacing the car
• Newer used cars with upgraded safety features may quality you for additional insurance discounts.

But your car insurance rates also depend on:

• Your driving record and driving history
• Credit score (in most states)
• Where you live
• Coverage options you choose

Special situations with used car insurance

Different buying scenarios come with their own insurance quirks, here’s what to expect and how to handle each one smoothly.

Buying from a dealership

Car dealerships often require proof of insurance before letting you drive off the lot. Some offer temporary coverage, but it’s usually:

• Limited (basic liability only)
• Expensive
• Very short-term

Better to arrange your own coverage ahead of time.

Buying from a private seller

Private sellers can’t help with insurance, you’re completely on your own. Plan ahead by:

• Getting quotes before viewing the car
• Having coverage ready to activate
• Bringing proof of insurance to the sale

If you have a car loan

Your lender will likely require collision and comprehensive coverage to protect their investment. The loan company needs to be listed as a lienholder on your insurance policy, which your insurance provider can handle.

What happens if you drive uninsured

Driving without insurance carries serious risks:

Legal consequences:

• Fines ranging from hundreds to thousands of dollars
• License suspension
• Vehicle impoundment in some states
• SR-22 requirements (expensive high-risk insurance filing)

Financial risks:

• Personal liability for accident costs
• Medical bills paid out of pocket
• Any property damage you cause will have to be paid out of your own pocket.
• Potential lawsuits if you injure someone

Future insurance costs:

• Higher premiums for years
• Difficulty finding coverage
• Required to get an SR22 filing in many states

Money-saving tips for used car insurance

Here are proven ways to cut costs without sacrificing the protection you need.

Compare multiple insurance companies

Car insurance rates vary dramatically between providers. All insurance companies have different pricing models. Shopping around can save hundreds annually.

Consider your coverage needs

For older cars with low cash value, you might skip comprehensive and collision coverage. But run the numbers, sometimes the coverage costs less than potential out-of-pocket repairs.

Look for discounts

Common car insurance discounts include:

• Bundling with renters or homeowners insurance
• Safe driving record discounts
• Low mileage if you don’t drive much
• Safety features like anti-lock brakes

Adjust your deductible

Higher deductibles lower your insurance premiums. If you can afford to pay more out of pocket after an accident, raising your deductible from $500 to $1,000 can significantly reduce your car insurance cost.

Consider usage-based insurance

If you’re a safe driver who doesn’t drive much, telematics-based insurance can offer major savings. Companies track your driving habits through an app and reward safe driving with lower rates.

Getting back on track after a lapse

If you’ve been driving uninsured, the best time to get covered is now. Here’s how to get back on track:

1. Stop driving immediately

Until you have coverage, avoid driving. One accident while uninsured could cost tens of thousands of dollars.

2. Shop for coverage right away

Many insurance companies specialize in helping drivers with lapses. Yes, you’ll pay more initially, but it’s still cheaper than the alternative.

3. Be honest about your situation

Insurance companies ask about coverage gaps. Being truthful helps them find you the right policy and avoid issues later.

4. Consider non-standard insurers

If traditional insurance companies won’t cover you, non-standard insurers specialize in high-risk drivers. This option is usually temporary, as your record improves, you may qualify for better rates in the future.

State-specific insurance requirements

Insurance requirements vary by state. For example:

• New York requires higher liability limits than many states
• New Hampshire doesn’t require insurance (but you’re still liable for damages)
• Some states require personal injury protection (PIP)
• Others mandate uninsured motorist coverage

Pro tip: Check your state’s specific requirements, as minimum coverage varies significantly.

Before we go…

If you already have car insurance, you likely get a grace period to add your used car,  but you still need coverage before you drive. No existing policy? You’ll need insurance before you can legally hit the road. The good news? Getting covered is faster and easier than ever.

We make getting car insurance for your used car surprisingly simple. Get a car insurance quote in as little as 90 seconds, customize your coverage to fit your car’s value, and start driving with confidence. 

Used car insurance FAQs

---

A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.