Auto Insurance on a New Vehicle: What is the Grace Period to Secure Insurance After You Drive Off the Lot?

I am a resident of California. I recently purchased a new motorcycle and had it stolen the very day I purchased it. I paid for it in full with a cashier's check. As it was the first day, I had not purchased an insurance policy on it yet. I currently have full auto coverage on my car. That insurance company does not offer motorcycle policies. They referred me to another company. I believe California law states the purchaser of the vehicle has 30 days to insure it from the date of purchase. Is this true? Would my new motorcycle be covered against theft by my current insurer in any way for those 30 days? Aaron G.

You must have spoken to your insurer about your motorcycle since you are aware that they do not offer motorcycle policies.  They would not, therefore, provide you with coverage for the first 30 days. Not all insurance companies provide coverage for all types of vehicles. The only time the 30 days (14 days in some states) comes into play is when your current insurer insures the type of product you have purchased.  Then you need to let them know as soon as possible that you have purchased a new vehicle.

If you don't already have insurance (which covers motorcycles) and you're buying your first motorcycle, it is best to purchase an insurance policy before you drive out of the showroom. In most states that require insurance, dealers need to see proof of insurance before they can let you drive off the lot.

Lori Mandell is an attorney, writer and editor. Her specialty areas include insurance, personal injury and estate matters.

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