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How to transfer your car insurance if you change cars during your policy term

How to transfer your car insurance if you change cars during your policy term

If you change your car during the term of your car insurance policy, you’ll need to let your insurance provider know.  

Almost all insurance providers allow you to transfer your policy from one car to another, and they’ll amend the policy to reflect that. However, it might change your premium and you may be charged an administration fee.

Daniel Hutson
From the Motor team
minute read
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Posted 13 JULY 2020

When should I tell my insurance provider I want to transfer my policy?

You should tell your insurance provider as soon as you have an idea of which car or cars you’re interested in. Give them the registration details and ask them how much your premium is likely to cost. Better to find out if there are any changes to the cost of your car insurance before you buy the car, than getting a nasty surprise later on.

How should I contact my insurance provider?

You can try contacting your insurance provider by phone, or you can use their online portal if they have one.

What will the insurance provider do?

They’ll confirm the make and model of the vehicle with you, and also check if you need to make any other changes to your policy. They’ll then be able to give you a cost for insuring the new car, which you can factor into your decision.

Will it change the cost of my insurance?

The cost of your insurance could go up, down, or remain the same, depending on the type of car you buy. For example, if the value of your new car is greater than the previous car you sold (or are planning to sell), and it’s a more powerful model, it’s more than likely your premium will go up. 

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What do I do if my premium does go up?

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 to at the start of the policy: either a lump sum or an increase to your monthly payments.  

If you initially paid your insurance up front, it’s worth checking to see if the extra cost could be spread over the number of months remaining on your policy.

Will it cost anything to transfer my insurance?

Most insurance providers charge an administration fee, which can typically range from £10 to £30 depending on the provider.  

Some insurance providers may waive the fee if you transfer your policy online but check the terms and conditions of your policy before you go ahead.

Do I need to stay with my current insurance provider?

No, you don’t need to stay with your current insurance provider – but if you’re happy with them and the costs are reasonable, it might be the most straightforward option.  

If you’re not happy with the new cost and feel you could get a better deal elsewhere, you can cancel your policy and take out a new one.

Just be aware that there’s usually a cancellation fee to pay, and you won’t earn your 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.

Anything else?

Just make sure you’ve got your insurance sorted before you get behind the wheel of your new car. If you’re buying from a dealership, they’ll often provide you with temporary insurance for a few days to tide you over until you’ve sorted it out long term. If you’re buying privately, your insurance needs to be in place before you pick up the car.  

The most important thing is that you don’t drive off without being properly insured.

Compare car insurance quotes

If you’re transferring your insurance, it’s always worth running a comparison before speaking with your insurance provider. That way you’ll have a good idea of what they should be offering you. If you think your current provider is too expensive, you’ll have a number of other options to choose from.

Our comparison service is a quick and easy way to compare quotes and may even save you money. As a Compare the Market customer, you could save up to £289** on your premium.  

**Based on Online independent research by Consumer Intelligence during May 2020 50% of customers could save up to £289.85 on their car insurance premium.

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