When you get a new car, transferring your existing car insurance is just as important as choosing the vehicle. You don’t have to start a new insurance policy; you can transfer your policy, and there will be no gap in coverage. Most insurance companies have a 30-day grace period to transfer car insurance, so you can update your policy without interruption.
While transferring car insurance doesn’t cost extra, changes to your vehicle’s financing—like getting a new loan or lease—may require changes to your coverage levels. The cost and coverage requirements will depend on the make and model of your new car, if you’re financing it, and any changes to your driving record. You can even update your car insurance with details about your new vehicle before you take ownership.
Below, we’ll walk you through the steps to transfer your auto insurance so you can have a smooth and worry-free transition to your new car.
Steps for Transferring Car Insurance To a New Car
Buying a new car is exciting, but so is ensuring you have the right insurance coverage. The good news is that you don’t have to start a new policy. Most insurers will allow transfers of insurance coverage from your old vehicle to the new one, so don’t skip a beat. However, your cost of insurance and coverage requirements may change based on the car’s value, financing terms, and your driving history.
Most insurers offer a 30-day grace period for this transition, but the timeframe varies by carrier and state. To avoid financial risk, updating your car insurance as soon as possible is best.
Below are the steps to transfer your car insurance and get the best coverage for your new car.
Step 1: Get an Updated Quote
Before you finalize your car purchase, get an updated quote to see how much your premium will change. A new vehicle, especially one that’s more expensive, has more tech, or has a higher theft rate, can increase your insurance costs. A car with more safety features may qualify for discounts.
When requesting a quote, provide the following:
- Vehicle Identification Number (VIN)
- Make, model, and year of the new car
- Safety and anti-theft features
- Intended use (e.g., personal, business, or ridesharing)
- Garage location (your home address may impact your premium)
Talk to your current insurance company or use online quote tools to get car insurance quotes from other companies.
Step 2: Get Quotes from Multiple Insurers
Even if you like your current insurance company, getting quotes from other insurers is worth it to ensure you’re getting the best rate. Many auto insurance companies have an online quote calculator to get a free quote quickly. Car insurance rates vary by company, and some providers offer better rates for certain types of vehicles or driver profiles.
When comparing insurers, consider the following:
- Premium costs for similar coverage
- Available discounts (e.g., bundling home and auto, good driver discounts)
- Customer service and claims handling ratings
- Coverage options that may not be included in your current policy
So, if another insurer offers a much lower rate for the same coverage, Switch insurance companies before you buy the car! Get a Cheap car insurance quote from Insurance Navy and see how much you can save!
Step 3: Notify Your Insurer
Once you’ve bought your new car, contact your insurers as soon as possible. Even if you’re within the grace period, waiting too long can expose you if you get into an accident.
When updating your insurance policy, ask the following questions:
- How long do I have to complete the transfer process? (varies by insurer and state)
- Do I need additional coverage for financed or leased vehicles?
- Are there any additional fees for the transfer?
- How will my premium change for the new car?
Remember, waiting doesn’t save you money. Your insurer will backdate any policy changes when you buy the vehicle.
Step 4: Review Your Current Policy for Gaps in Coverage
Review your policy before you finalize the transfer to see if it covers your new car. If your old car only had minimum liability coverage. That may not be enough to protect your investment, especially if you’re financing or leasing.
Consider adding or updating the following types of insurance coverage:
- Comprehensive Coverage – Comprehensive insurance covers theft, vandalism, weather damage, and hitting an animal.
- Collision Coverage—Collision insurance covers the repairs or replacement of your vehicle in a car accident, regardless of fault.
- Gap Insurance—Gap insurance is recommended for leased or financed vehicles. It covers the difference between what you owe on a loan and the car’s actual value if it is totaled.
- Uninsured/Underinsured Motorist Coverage—This covers the costs if another driver causes an accident in an uninsured vehicle and lacks proper coverage.
- Medical Payments coverage: Covers medical expenses in the event of an accident
If your policy needs changes, talk to your insurer and make the changes.
Step 5: Meet Loan or Lease Requirements
If you financed or leased your new vehicle, the lender will likely require full coverage (collision and comprehensive coverage). The financing company or dealership will need proof of insurance before letting you take the car home.
To meet lender requirements, your insurance company will need:
- Lienholder details (name and contact information of the financing company)
- Comprehensive and collision coverage limits set by the lender
- Proof of coverage sent directly to the lienholder
If you don’t provide this information, the lender will often buy insurance at a much higher rate on your behalf.
Step 6: Ask About Extras and Discounts
Before you finalize the car insurance transfer, ask your insurance provider if there are any additional fees and if you qualify for any car insurance discounts.
Common things that can affect your premium are:
- New coverage requirements for a financed vehicle
- Change of address or driving history
- Higher risk of theft for your new vehicle
- New safety features that can lower rates
- Multi-policy discounts (e.g., bundling home and auto insurance)
Taking the time to ask about car insurance discounts can save you money.
Step 7: Finalize Your Policy and Get Proof of Insurance
Once you’ve updated your insurance, request proof of insurance coverage from your insurer. This is required for:
- Registering your new vehicle with the DMV
- Providing proof of insurance to your lender if financing or leasing
- Legal compliance while driving
Many insurers offer digital proof of insurance, which you can keep on your phone for easy access.
Transferring your auto insurance to a new vehicle doesn’t have to be challenging. Still, it’s essential to do it quickly to avoid financial and legal risks.
Start by getting an updated quote, comparing multiple insurers, and meeting financing requirements. Reviewing your coverage options and asking about discounts will help you get better coverage at the best rate.
You can switch to your new car with peace of mind by following these steps.
How Much Does It Cost to Transfer Car Insurance to a New Car?
Transferring insurance to a new car may incur administrative fees from your insurance provider. Plus, if your coverage changes, you may need to pay the difference upfront or adjust it across your future monthly payments.
The price of your new car insurance policy will depend on:
- Car details – Make, model, year, value
- Coverage limits – Higher limits = higher premium
- Insurance requirements – Financed or leased cars need comprehensive and collision coverage
- Additional policy changes – Adding roadside assistance or rental reimbursement
If your new car is more expensive than your old one, your premium will go up. A full-coverage auto insurance policy with 100/300/100 limits costs around $1,395 annually. These coverage limits mean:
- $100,000 bodily injury liability coverage per person
- $300,000 bodily injury liability coverage per accident
- $100,000 property damage coverage per accident
How to Get the Best Insurance Rates for Your New Car
To avoid surprises, get a new car insurance quote to compare rates and coverage before you buy. You can stick with your current insurer but shop around for better deals.
Suppose you’re adding your new car to your existing policy instead of replacing an old one. In that case, you may be eligible for multi-car discounts and savings.
Remember, you’re not locked in. Suppose you find a better insurance provider with better coverage at a lower rate. In that case, you can switch and cancel your existing policy anytime.
How Long Do You Have to Transfer Insurance to Your New Car?
It’s best to do it as soon as possible, but many insurance companies offer a window for extra time.
In this case, a window is the time you have to notify your insurer of your new car and update your coverage before the gap. The length of this window varies by insurer but is usually between 7 and 30 days.
Don’t leave any gaps in your insurance coverage. Check with your insurer to see how long your window is, and do it as soon as you can.
Does Car Insurance Transfer When You Trade In Your Car?
Car insurance is tied to the specific vehicle it insures. When you trade in your old car and buy a new one, your current policy no longer covers the traded-in car once ownership is transferred.
Insurers determine policy rates based on many factors about the insured vehicle, including:
- Year, make and model
- Vehicle type (sedan, pickup truck, SUV, etc.)
- Engine size and performance
- Crash test ratings and built-in advanced safety features
- Estimated maintenance and repair costs
- Anti-theft devices and security systems
- Other risk-related characteristics
Since your new vehicle will have different attributes than your old one, the insurer can’t apply the same rates and coverage. They must reassess and adjust the car insurance policy to the new car’s risk profile.
While your car insurance policy doesn’t “transfer” when you trade in your vehicle, updating your coverage is simple and straightforward.
To avoid a coverage gap, ensure the new car is added to your policy before you take ownership and the old one removed once the sale is complete. Take the time to compare quotes and shop around to get the best coverage at the best price for your new vehicle.
How Can You Transfer Car Insurance To Your New Car With No Trade-in?
If you don’t have an active insurance policy, getting car insurance coverage on the new vehicle is vital. Before taking the vehicle home, ensure you have proof of vehicle insurance if you are financing your new car.
It’s a good idea to shop around for car insurance coverage quotes or speak with a vehicle insurance agent, insurance representative, or insurance professional before purchasing car insurance for your new car.
If you’re buying a car for the first time and need to gain experience in buying auto insurance, shopping around for car insurance coverage quotes or speaking with an insurance agent before purchasing your new car is especially important.
Your driving record, credit report, and auto insurance history all play a role in determining your car insurance coverage rates. The year and make of the automobile, its overall safety record, how frequently thieves target that car model, and the expected average cost of repairs all impact auto insurance rates.
How to Transfer Car Insurance on a Weekend or Holiday
Buying a car over the weekend or during a holiday sale can be fun. Still, it can raise concerns about transferring auto insurance on a weekend or a holiday.
You might worry about coverage gaps if you haven’t notified your insurer in advance. However, many insurance companies now offer 24/7 customer support so that you can update your policy anytime, even on weekends or holidays.
Most insurers have hotlines, online access, or mobile apps where you can transfer insurance coverage immediately. If you’re making a last-minute purchase, follow these steps to make sure you’re covered:
- Check if Your Insurer Offers 24/7 Service
- Many companies allow you to update your policy via phone, online, or mobile app.
- Call your insurer’s emergency number if changes can’t be done online.
- Gather Required Info
- VIN
- Year, make and model
- Safety features and anti-theft systems
- Sale and loan paperwork if the car is financed or leased
- Request Policy Transfer
- Call your insurer to update your coverage and determine if additional insurance (e.g., collision or comprehensive) is required.
- If the policy transfer cannot be completed immediately, please call your agent the next business day to finalize the update.
Even if your insurer has a grace period, updating your policy ASAP is always best. A quick call, online update, or mobile app submission can prevent unnecessary risks and comply with loan or lease requirements. You can drive your new car home knowing you’re covered.
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Frequently Asked Questions
Do I Need Short-Term Insurance When I Transfer My Policy to a New Car?
No. Most insurers will give you temporary coverage under your existing policy for a limited time (7-30 days) so you can get your policy updated.
Can I Transfer My Insurance If I’m Moving Dealerships or Buying Privately?
Yes, you can transfer your insurance through any method you choose (dealer or private sale). Still, you must inform your insurer ASAP to avoid any gap in coverage.
Can I Keep the Same Coverage and Deductibles When I Transfer to a New Car?
Yes, in most cases. However, your insurer may suggest changing your cover or excess based on the new car’s value or your financial situation.
Can I Transfer My Insurance to a New Car Before Selling My Old One?
Yes, you can transfer your insurance to your new car and keep short-term cover on your old one so both vehicles are covered during the transition.
Are There Fees for Transferring Insurance to a New Car?
There is no fee to transfer. But if your new car results in a premium adjustment, you may need to pay the difference or, in some cases, get a refund.
