A simples guide

Transferring car insurance

Whether you’re treating yourself to a new car just because you can, or replacing your old banger that’s earned a one-way ticket to the scrapyard – you’ll need car insurance for it.

We know insurance is dull and it’s just all a bit of a faff if you’re already part way through your existing policy so why not let us help you – here’s our guide on how to transfer car insurance (we promise not to make it too dull).


Can I transfer my car insurance to a new car?

In short – yes. All you need to do is contact your existing insurer and tell them about your new car. You can do this through the self service centres online. They might confirm all your other details haven’t changed whilst they’re at it such as marital status, where the car will be kept and how many miles you drive. As soon as you’ve advised your insurer about the change of car and you’ve agreed any fees and premium changes, you should be sorted.

In most cases, your insurer will charge you an admin fee for making the alterations. These will all be part of your original terms and conditions but insurers will usually reiterate it over the phone.

You’ll also need to be prepared for your insurance to go up or down depending on the type of car you’ve bought. If you’ve gone from a sensible little run around to a petrol guzzling, engine roaring sports car then you’ve got to expect your policy to reflect that.

If you’re really organised, you might want to make a note of the cars you’ve taken a real shine to and call your insurer to see what implications there might be on your premium if you did do a car insurance transfer. They’ll be able to advise you and it might even influence your decision on what you buy.

Car key
coins in jar

Do I have to transfer my existing car insurance?

No, you don’t have to transfer insurance to another car. You can of course set up a new policy with another insurer. But think carefully and weigh up all the options before you do – it might save you a few quid.

If you do decide to cancel your existing policy and go with a different insurer, you may well be charged a cancellation fee which may be more than the fee to amend your current policy. If you’ve paid your premium up front, then you might be eligible to a refund if you cancel it but you could find that any cancellation fees actually eat up anything you’re entitled to.

In addition to this, you won’t earn any no claims bonus on your policy for the period of the year that you were insured. So if you were already eight months into your current policy and decide to cancel it, you’ll lose any bonus earned over that eight months.

However, with all of that said, if you compare the market, you might find an amazing deal that blows your current policy, fees and all, completely out the water. In which case, it makes more financial sense to go for it and take the hit on any cancellation fees.

You’ll need to cancel the policy if you no longer own the vehicle as 1) you have no insurable interest in the vehicle and 2) it could be dual insured as someone else will insure it if they buy your old car. So don’t drive your new car until you have it insured – it’s illegal to drive a vehicle without insurance – need we say more?

So, when should I transfer insurance to another car?

You’ll need to be insured on your new car as soon as you drive it away. That means you’ll need to sort it out before you collect the keys and wave bye-bye to the garage forecourt. If you don’t, you won’t be covered should anything happen between the dealership and home. That means if your bonnet ends up in someone’s exhaust, you’ll be picking up the bill along with points on your licence and a fine– harsh but true, so always make sure transferring your existing insurance or getting a new policy is your top priority.

Start comparing

So if you’re contemplating getting a new car and have something in mind, why not start comparing the market to see if you can help you find an even better deal on your car insurance? Or if you’re fed up of patching up your old car why not see if you’re eligible for a personal loan so you can get a new one – we’re always here to help put you on the right road.

Looking for a Quote?

Get a new car insurance quote in seconds and start saving

Get a quote