Typically, on most car insurance policies, you have up to 30 days of coverage when you purchase a vehicle and it is replacing another vehicle. The coverage matches the coverage you had on the previous car. For example, if you had $50,000 per person of bodily injury and $100,000 per accident, along with $250 deductibles, the new vehicle would also have those limits.
Each policy may be different so don’t assume you have 30, 10, or even 5 days of coverage. Contact your agent when you are considering buying a vehicle and he/she can review the estimated rate along with the length of time you have to add the car to the policy.
If you are purchasing a new vehicle, and your existing coverage is “liability only,” it’s critical to add the car to your policy before it is driven. Also, be aware of the date you will be charged for the new car coverage. It may not be as “free” as you believe, if the vehicle is added effective the day of purchase, and not the day of reporting!
IMPORTANT: Answer was provided by Edward Harris, one of the premier auto insurance authorities in the US. His website, Carinsurancezoom.org, provided free online quotes and the lowest car insurance rates from top-rated companies in your area.