Changing the car on your insurance policy
In all the excitement of buying a new car, don’t let insurance slip your mind. If you change your car while your current policy is active, you’ll need to update your cover before driving off in your new set of wheels. Here’s how to go about changing the car on your insurance policy.
In all the excitement of buying a new car, don’t let insurance slip your mind. If you change your car while your current policy is active, you’ll need to update your cover before driving off in your new set of wheels. Here’s how to go about changing the car on your insurance policy.
Can you transfer car insurance to another car?
Yes. Almost all insurance providers allow you to change the car on your policy to another one. Even though standard car insurance runs for 12 months, you can make changes to your policy part-way through.
It can be a fairly simple process and your updated policy will cover you until your existing renewal date. That said, be aware that you may have to pay a fee to cover admin costs and your new car might affect the cost of your premium.
When should I tell my insurance provider I want to transfer my car insurance to a new car?
You’ll need to have cover in place before you drive your new car, so try to arrange the switchover at least a day before collection. It’s important that you don’t drive off without being properly insured.
If you’ve found a car you like, it’s a good idea to check you can afford the insurance before you buy. If you have a car in mind, give your provider a call and get an updated quote based on the car’s make, model and registration.
Once you’ve agreed to buy the car, let your insurance provider know the date you intend to complete the purchase and start driving it. They’ll set a date for your updated policy to begin.
On the day of the transfer, the cover on your new vehicle will start as soon as you set off in it and the cover on your old vehicle will end. If you still have your old car, you’ll need to keep it insured until you dispose of it. In this case, you may decide to take out a temporary policy on your new vehicle.
If you’re buying from a dealership, you might be given temporary car insurance for a few days to tide you over until you’ve sorted out long-term cover. But double check in advance to make sure. If not, you’ll have to organise insurance so you can drive the car away.
Top tipThe car you drive, particularly how powerful it is, could have a big impact on the cost of insurance. So don’t forget to take that into consideration when you’re working out how much you can spend. |
How do I go about transferring insurance from one car to another?
Just get in touch with your provider, either by phone or via their online portal.
You’ll need to provide details about your new vehicle, including the make, model and registration number. You’ll also need to give information about any modifications that may have been made to the car.
If you’re buying from a dealership or garage, they should have that information. If you’re buying privately, ask the existing owner.
Your provider might also ask if you need to make other changes to your policy. For example, you now park overnight in a garage rather than on the street.
They’ll then be able to give you an accurate cost for insuring the new car, taking all the changes into account.
Will switching the car on my insurance affect the cost?
Quite possibly. The cost of your insurance could go up, down or remain the same, depending on the type of car you buy and how it compares with the old one.
For example, if the value of your new car is greater than your previous car and it’s a more powerful model, your premium will probably go up. If you’re downsizing to a smaller car with a smaller engine, your premium could go down.
In fact, some motorists downgrade the horsepower and, in turn, the purchase price of their next car to help with budgeting. However, it’s not always straightforward; some older models could cost more to insure as they don’t have as many safety features as newer vehicles.
Get a quote in advance from your provider for the car you’re thinking of buying or compare car insurance quotes with us. You can also use our handy tool to check which car insurance group your new car is in.
How much does a car insurance transfer cost?
Most insurance providers charge an administration fee, which typically ranges from £10 to £30, but it could be more, depending on the provider.
Some insurance providers may waive or reduce the fee if you transfer your policy online. Explore your options, and check the terms and conditions of your policy before you go ahead.
This fee will be on top of any increases in your premium, based on your new vehicle.
What do I do if my premium goes up?
If your premium goes up, you’ll need to pay the increase.
You may be asked to pay by the same method you agreed to at the start of the policy. That means you could either pay the extra cost as a lump sum or see the increase spread across your remaining monthly payments.
But if your new car is cheaper to insure, you could get a refund on the lump sum you’ve already paid or a reduction in your monthly premiums going forward.
Do I need to stay with my insurance provider when I change my car?
No, you don’t need to stay with your current insurance provider. If you’re not happy with the new premium and feel you could get a better deal elsewhere, you can cancel your car insurance policy and take out a new one. But be aware that there’s usually a cancellation fee to pay.
Nor will you earn a no-claims discount if you cancel before the end of your 12-month policy.
You’ll need to weigh up the cancellation costs against the saving you’d make by switching. The fees should be outlined in the terms and conditions of your policy.
What happens if I forget to update my car insurance?
If you don’t tell your insurance provider that you’re driving a different car, your cover will no longer be valid and you’ll be driving illegally without insurance.
If you’re caught by the police, you’ll get a fixed penalty of £300 and six penalty points. If the case goes to court, you could get an unlimited fine and be disqualified from driving. You could even have your new car seized by the police.
It also means you won’t be able to claim on your insurance if your new car is stolen or you’re involved in an accident.
Frequently asked questions
Can I change my car insurance before the renewal date?
Yes, you can change the details of your car insurance before renewal. In fact, you definitely should inform your insurance provider of any changes that could affect your cover as soon as they come up. Don’t wait for renewal.
If you’re not upfront with your provider about changes that can affect your policy, it could invalidate your cover. That could leave you uninsured and driving illegally.
Can you change car insurance at any time?
Yes, you can change the details of your car insurance policy at any time, although your provider may charge you an admin fee to make changes to your cover. And your premiums could go up or down, depending on the change you make.
If I change my policy to another car, can I leave my old car without insurance?
If your old car is going to be parked on a public road, then it needs to be insured, even if it’s not being driven anywhere. If you want to transfer your existing policy to a new car, you could look at getting temporary cover for your old car until it’s sold.
If you’re going to park your old car on private property – for example, in your garage or on your driveway – then you can officially declare it off-road with a statutory off-road notification (SORN).
Compare car insurance quotes
If you’re transferring your insurance, it’s always worth comparing quotes before speaking with your insurance provider. Our comparison service is a quick and easy way to compare quotes. See if you can save today.
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