How to transfer insurance to a new car

Transferring your car insurance to a new vehicle is critical to ensure continuous coverage and compliance with state regulations. While the process may seem simple, it involves more than just notifying your insurance company of the change. Insurers will require specific details about your new car, such as its make, model, year, and Vehicle Identification Number (VIN) to update your policy accurately.

It’s also important to understand that transferring insurance can impact your premium. Factors such as the value of the new car, its safety features, and repair costs all play a role in determining the new rate. For example, a higher-value car, or one with fewer safety features, may increase your premium, while advanced safety technology could lower it.

Acting promptly is key to avoiding coverage gaps, which could leave you financially vulnerable. Additionally, comparing quotes from multiple insurers during this process can help you secure the most cost-effective coverage for your new vehicle. With the right approach, you can navigate the transition smoothly and ensure your new car is fully protected.

Can you transfer car insurance to a new car?

Yes, you can transfer your car insurance policy to a new vehicle, but the process involves more than just updating your details. When you transfer your policy, your insurance company will need specific information about the new car, such as its make, model, year, and VIN (vehicle identification number). 

Additionally, your insurance premium may change based on factors like the car’s value, safety features, and repair costs. It’s important to notify your insurer promptly to ensure continuous coverage during the transition.

How to transfer car insurance to a new car

If you want to transfer your car insurance to a new car, use the following steps as a guide. Generally, it’s best to start this process before your purchase of the new vehicle is complete. 

• Reassess your insurance needs: When you buy a new vehicle, it’s a good time to check your coverage needs, which might change based on your new vehicle. For example, if you are leasing a car or paying off an auto loan, you’ll likely need to carry a full coverage policy. 
• Get an updated quote: In many cases, your auto insurance costs will increase due to a higher-value vehicle. You’ll need to provide the VIN, safety features, make, model, and model year to get an accurate quote from your insurance company. 
• Check for fees: Some insurance companies charge an administrative fee for transferring your policy to a new vehicle. It’s best to get a feel for these in advance. 
• Compare quotes: Before locking in the transfer, it’s a good idea to get quotes from multiple insurance companies to confirm you’re getting a good deal. If you aren’t, consider switching insurance companies. 
• Lock in your policy: Last but not least, make sure your existing policy remains active with the details of your new car included. Get a notice of the changes to the policy in writing to avoid miscommunication. 

Expert take: How much time does a driver have to transfer car insurance from an old car to a new car?

“You’ll need to check your policy language to be sure, but in general, you have a 30-day grace period in which a new car is covered under your policy,” says Kate Terry, board member for Skyward Specialty Insurance, a property and casualty insurance provider in Houston. 

Terry continues, “However, most states require you to show insurance for your specific vehicle to register it, and most dealers and private sellers want you to register the vehicle before you pick it up so they aren’t responsible if you get in an accident. For these reasons, it’s better just to add your new car to your insurance when you buy it.”

Does it cost money to transfer insurance to another car?

Most insurance companies allow you to transfer your policy from one car to another at no additional cost. However, some insurers may charge an administrative fee to process the transaction. It’s a good idea to confirm with your provider whether any fees apply before proceeding with the transfer.

In addition to potential fees, be prepared for changes in your insurance premium. The cost of your new policy will depend on various factors related to your new car, such as its value, safety features, estimated repair costs, and average theft rates. Generally, if your new vehicle is more expensive or less safe than your previous one, you can expect your premium to increase.

On the other hand, if your new car has advanced safety features or is less costly to repair, you might see a decrease in your insurance rates. Understanding these potential changes upfront can help you plan your budget and avoid surprises.

How much does it cost to transfer insurance to a new car?

Transferring your insurance to a new car could lead to increased costs. Here’s a closer look at the key factors that can influence your premiums:

• New vehicle’s value: If your new vehicle is worth more than your old vehicle, you might pay more for coverage. 
• Administrative fee: Some insurers charge an administrative fee to finalize the transfer of your insurance policy to a different vehicle. However, many don’t. 
• New vehicle’s safety features: If your new vehicle has more safety features than your old vehicle, you might pay less for coverage. 

The most effective way to estimate your insurance costs for a new vehicle is to obtain quotes from multiple providers. Comparing these quotes will help you identify the most affordable coverage that suits your needs.

What happens if you don’t transfer your car insurance to a new car?

“In most states, you won’t be able to register your car without proof of insurance for that specific vehicle. That’s a huge hassle if you’ve stood in line at the DMV,” says Terry. 

“If for some reason you do manage to register it or you drive it without registering it after the grace period on your existing auto insurance policy during which a new car is covered — usually 30 days — you will likely have no coverage at all if you get in an accident driving your new car,” she says.