A simples guide

Transferring your car insurance to a new car

Your car insurance policy covers you to drive a specific car (or cars), so if you change the car you’re driving, you’ll need to let your insurance provider know so they can change your insurance policy.

Almost all insurance providers will allow you to transfer your policy from one car to another or, if you’re adding a second car, amend your policy to reflect that – but you can only do this with a multicar policy.

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When should I tell them?

Whether you’re buying a brand new car from a dealer, or a second hand one from your local paper, you might want to know what the new car will cost you to insure.

As soon as you have an idea which car or cars you are interested in you could contact your insurance provider with the registration details and ask them.

They’ll confirm the make and model of the vehicle(s) with you and check whether anything else has changed on your policy. They’ll then be able to give you the cost for insuring the new car which you can factor into your decision.

This is particularly wise if you’re buying a very different car, for example one that is much more powerful, or, if you’re a younger driver and insurance is relatively expensive.

Better to find out the likely cost of insurance before you buy the car than leaving it until later and getting a nasty surprise.

How do I tell them?

You can try picking up the phone and giving them a call or you can use your insurance providers online portal if they have one.

 

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Will it cost anything?

There’s usually an administration fee of between £15 and £45 payable depending on your insurance provider. Some will waive this fee if you do this online – best to check the details before going ahead.

 

What if my premium changes?

If your premium goes up, you’ll need to meet the increase. You’ll usually be asked to pay the extra in the method you agreed at the start of the policy, either a lump sum or an increase to your monthly payments. It’s possible you might be offered, or if not, you could ask, if there is a possibility of spreading the cost over the number of months remaining on your policy.

Do I need to stay with my current insurer?

You don’t need to no, but this could be the most straightforward option. If you’re happy to stay and the costs are reasonable, your policy will be adjusted for you.

If you feel the changes are unreasonable or you know you can get a much better deal elsewhere, you can cancel your policy and take out a new one. It’s worth running a comparison before speaking with your insurance provider to get a good idea of what they should be offering you. And let you know what you could be paying in the future once you can switch at renewal time.

Remember there are usually cancellation fees that you have to pay and you might lose any NCD you are accruing during that year of insurance, so you’d need to weigh these up against the saving you’d make by switching. Check your policy for details of how much these fees are.

Anything else?

Just make sure you’ve sorted out the insurance before you climb behind the wheel of your new car! In the excitement, it’s all too easy to forget. If you’re buying a car from a dealership they’ll often give you temporary insurance for a period of a few days to tide you over until you’ve sorted it out long term. If you’re buying a car privately, make sure you’ve adequate cover. You don’t want to have an accident and find you’re uninsured.

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