Transferring your car insurance when you change cars

Key takeaways

• To avoid any gaps in your car insurance cover, inform your car insurance provider you're changing vehicles

• Your insurer will need details of the new car, including make, model, and the registration number, and when you’d like the cover to start

• Your insurer will adjust your premium based on your new car and you may need to pay an admin fee or a cancellation fee if you change providers

Can you transfer car insurance from one car to another?

Yes, most insurance companies allow you to transfer your current car insurance policy to a different car even if you’re midway through your term.

They’ll usually charge an admin fee for this and they’ll recalculate your premium based on the make and model of the new vehicle.

How will my new car affect insurance costs?

The cost of your car insurance depends on the type of car you drive, including its engine size, as well as other factors such as your age and driving history.

If you transfer your insurance from one car to another, especially if you drive a car in lower insurance group, usually something inexpensive with a small engine, you’ll pay a lot less than someone with a powerful sports car or a luxury 4x4.

📣 The reason is simple: a bigger engine and more expensive car increase the risk and cost of potential claims.

If you’re downsizing to a smaller car, your premiums may come down, and if they don’t, it might be worth shopping around for a new policy with another insurer.

On the flip side, if you’re switching to a car in a higher insurance group your premium is likely to increase.

Estimate your premium with our car insurance group checker

Before you commit to a new car, it’s wise to estimate how it might affect your insurance premiums. You can find out how the car you’re thinking of buying is likely to affect your premiums with our handy car insurance group checker.

When should I transfer my car insurance to my new car?

• Inform your insurer as soon as you have a delivery or collection date for your vehicle

• You may be able to choose a start date up to a month in advance

• Alternatively, if you’re buying from a dealership, it may offer you temporary insurance to cover you for the first few days of ownership

• If you’re buying a vehicle privately, you’ll need insurance in place before you pick it up

What if I still need to insure my old car?

If your new car is due to arrive before you’ve sold your old one you could:

• See if your insurer will cover both cars - this is known as multi car insurance

• Take out standalone temporary car insurance for your new car

Alternatively, if your old car is off the road you could SORN it and not have to pay insurance.

What if I forget to inform my insurer?

Failing to inform your insurer could invalidate your policy and mean that you’re driving your new car without insurance. Remember that is a legal requirement to have at least third-party cover in the UK.

Do I need to stay with my insurance provider when I change my car?

No, you’re under no obligation to stay with your current insurance provider when you buy a new car during the term of your existing cover, and you may well be able to save money by finding a better deal elsewhere.

If you do find a better quote elsewhere you could ask your insurer to match it.

What are the disadvantages of switching car insurance providers?

• You’ll usually have to pay a cancellation fee

• You’ll lose your no claims discount or no claims bonus for the year if you cancel your policy before the 12-month term is up (assuming you haven’t claimed on your insurance)

What other changes do I need to tell my insurer about?

You may also need to update your policy for a host of other reasons, such as

• Changing jobs

• Receiving a driving conviction or penalty points

• Modifying your car

• Changing where you park your car overnight

• Moving house

Compare car insurance quotes

Comparing car insurance quotes with MoneySuperMarket is a quick and easy way to check if you can save money by changing insurers rather than transferring your existing car insurance policy. All you need to do is provide some personal information, details about the car you’re buying, and your driving history to receive a list of quotes tailored to your needs.