60-second summary
Short on time? Here’s what you need to know:
You can normally change the car on your insurance policy to another one.
You may be charged an admin fee to make changes to your policy.
The price of your premiums could go up or down, depending on how your new car compares to the old one.
If you find a better quote elsewhere, you could cancel your existing policy and get a new one instead, but you’ll usually have to pay a cancellation fee.
You’ll need to have cover in place before you drive a new car.
Failing to notify your insurance provider about changing your car will invalidate your policy and leave you driving illegally without insurance.
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. You mustn’t drive off without being properly insured.
If you’ve found a car you like, it’s a good idea to check that 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.
What if I still have my old car?
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.
Alternatively, if you want to keep your old car without insurance, you’ll need to apply for a Statutory Off-Road Notification (SORN).
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. This is sometimes called drive-away insurance. Double-check in advance to make sure. If not, you’ll have to organise insurance so you can drive the car away.
Top tip
The 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 your budget.
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, it 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, if you now park overnight in a garage rather than on the street.
It'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.
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. And compare car insurance quotes with us to see how their quote stacks up against policies from other providers.
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 £15 to £30, but it could be more or less than this, 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 potential 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.
And you won't 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 savings 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.
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With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
