Buying a new car is exciting. so much so that it can be easy to forget less glamorous but equally important things like updating your car insurance.
Buying a new car is exciting. so much so that it can be easy to forget less glamorous but equally important things like updating your car insurance.
Reading: How do i switch my insurance to a new car
You must have car insurance to drive legally in the UK so it is essential to set up your insurance cover before you pick up your new set of wheels.
Fortunately, updating your auto insurance isn’t a complicated process.
can i transfer my existing auto insurance?
usually yes. Standard car insurance policies last for 12 months, but most insurers will allow you to change the car on your policy during this time period.
Changing the vehicle on your insurance policy could mean your insurance cost will change as well, depending on the car you’re insuring. your provider will also likely charge an administrative fee for the switch [1]. depending on the market comparison, it is likely to be between £10 and £30 [2], but it depends on your insurance provider.
how do i change my auto insurance policy?
usually just call your insurer to modify your policy. Or, if they have an online customer portal, you may be able to make changes online.
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Either way, you’ll need to have a few details handy, like your policy number, your vehicle’s registration number, and the make, model, engine size, and value of the vehicle. You’ll also need to tell your insurer about any modifications that have been made to the car, so they can make sure your policy still covers you. Finally, be sure to let them know if you need to make any other changes to your policy.
If your insurer can offer you coverage for your new car and they agree to proceed with any changes to your premium, then they will provide you with the new policy documents, either online or by mail.
When you switch your auto insurance policy to cover your new car, your insurance will be in effect through your current renewal date. It’s worth keeping in mind that your renewal date will remain the same after you trade in the car covered by your policy.
When should I change my insurance coverage?
You shouldn’t change your insurance policy before you buy the new car, but once you’ve decided which car you want to buy, you can call your insurer for a quote. That way, you can find out how much you’re likely to pay and whether it will be more or less than your current premium.
If you’re buying a new car from a dealer, they may provide you with a term auto insurance policy as part of the deal1, but be sure to check before you go and don’t forget to buy longer-term insurance . effective from the expiration date of temporary coverage.
If you buy your car secondhand, you’ll need to set up your insurance coverage yourself before you drive the car home.
would it be better to change insurance provider?
When you buy a new car, instead of staying with your current carrier, you can cancel your insurance and shop for a new insurance company entirely.
If you choose to do so, you may be entitled to a refund for any unused coverage1 with your existing insurer, provided no claims have been made in that policy year. however, you’ll also likely have to pay a cancellation fee and lose your no-claims bonus for the year if you start a new policy.
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compare the market suggests that if you’re happy with your current provider and the costs are reasonable, staying with them might be the easiest option [2].
If you decide to cancel, it is important that you review your policy documents carefully before proceeding.
what happens if i forget to update my insurance?
If you don’t tell your insurer that you’re driving a different car, or if your insurer doesn’t confirm the changes, your coverage will no longer be valid and you won’t be able to claim your insurance.
This means you will not have insurance coverage and will not drive legally. driving without proper insurance can get you a fine, points on your license, or even have your new car impounded by the police [3].
don’t forget vehicle tax
When you buy a vehicle, you must encumber it before you can use it [4].
The amount of tax you have to pay will vary depending on the CO2 emissions of your car model, as well as when the car was first registered; see our car tax guide for more information.
You can file your car tax online via the official gov.uk website or you can call dvla.
Once you’ve insured and taxed your new car, you’re ready to hit the road and enjoy your new set of wheels.
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