You’ve always dreamed of buying a new car and you’ve spent the past few months, even years, saving for it. We bet you’re excited and we’re excited for you! We also know you’re probably not that excited about all the paperwork that goes with it. Not only does paperwork involve transferring insurance, but it also includes ensuring your new vehicle is taxed, has a valid MOT if applicable and the transferring of ownership. To make things easier, here’s our very quick guide to transferring insurance from one car to another:
What to consider before switching insurance to a new car
Check with your insurer before you buy
There are a couple of good reasons to call your existing insurance broker if you’re thinking of changing your car halfway through your insurance.
The main one is to check that they will insure your new car. Some insurers won’t cover cars that have been modified, have been previously written off or are an import, for example. If this is the case, you’ll have to cancel your existing policy and you may incur a cancellation fee.
You might also want to run the make and model past them to see if it affects the cost of your motor insurance. If your new car is in a higher insurance group your premium will most likely go up. That brings us to the next point.
Prepare to pay more
If your new car is newer, worth more, or has a bigger engine for example, your premium may go up.
It’s hard to predict though because pricing car insurance is pretty complex and depends on many factors such as value, engine size, and safety features.
You may also want to research the different types of insurance available to you. If your new car is worth more, then perhaps it’s a good idea to take out more coverage. It’s recommended to take out comprehensive insurance if you want to be fully covered but you can also take out third-party fire & theft insurance.
On the other hand, your insurance might go down too – checking your insurance group is a good indicator.
It’s best to contact your local insurance broker and ask them for a car insurance quote.
Read More: The WHY Behind Car Insurance Qs?
Make sure your insurance is in place before you drive off!
If you haven’t transferred your car insurance over to your new car, your new car is not insured!
It’s vital that your insurance starts on the day you pick up your new car. It would be really unfortunate to be picked up by the police for having no insurance. Having no car insurance not only carries a fine, but you can also get 6 penalty points on your license. Not changing insurance to your new car also puts you at risk for costly expenses if you’re involved in an accident.
Don’t chance it!
Remember - there will be an admin fee
Here at Stroll Insurance, we always get asked “How much does it cost to transfer car insurance?”
Updating your cover will most likely incur a small admin fee – this can be between £15-30, depending on the insurer.
Think about GAP Insurance
If your car is new or newish, it’s worth thinking about GAP (Guaranteed Asset Protection) Insurance which covers any shortfall between the price you pay and what an insurance company will pay out should the worst happen. This affects new and newish cars mainly as they depreciate most in the first year or two.
You may be wondering if you can transfer GAP insurance from one car to another. If you already have GAP insurance, your insurer will either switch the policy with your new car's details OR cancel the old one, give you a refund and sort you out with a new GAP policy – sorted!
Bear in mind that any named drivers on your policy may not be transferred to your new cover so it’s best to double-check with your insurance provider. On the plus side, your no claims bonus won’t be affected by the transfer.
If you need to transfer your car insurance, contact our helpful team via chat and we’ll walk you through it. Simple!
