Many new car dealerships require you to have auto insurance before they hand you the keys and watch you drive off. The purchase of a new car does not cover you automatically. But that doesn't mean you need to rush out and buy a new policy. Your current policy should cover you for 30 days (generally speaking) -- 14 days at the very least. Insurance companies give you a grace period, so you can use your existing policy to cover your new vehicle temporarily.

Of course, if your policy has run dry, or you don't have one at all, then you probably will have to rush out and buy one. Knowing this, you may want to shop around before you purchase a new car.

If you are leasing, the insurance game may be a little more complicated. Auto lease contracts often specify the need for higher liability limits than your state requires. Therefore, you may be forced to pay a higher premium than you paid before. And you will have to prove that your policy has the required liability coverage before the leasing company will release the car to you.

Don't assume that an auto dealer will give you any leeway on the matter of insurance. A requirement is a requirement. Follow their rules, and the route to driving your new car off the lot will be a painless one.