Can I Change My Insurance to My New Car in Advance?
Paying for something that might happen. Who doesn't enjoy doing that? 🙄 Okay, but seriously, having insurance is necessary, whether it covers our houses, expensive items or cars. And when it comes to driving, you can't even legally get behind the wheel without insurance. But what happens when you're buying a new car to replace the old one? If you've found yourself asking "how can I change insurance to a new car in advance?" Worry not because we're here to tell you.
Why do I need car insurance?
Car insurance is a legal requirement for anyone who owns a vehicle and plans to drive it (there isn't much fun in owning a car and leaving parked up somewhere). Covering your car protects you from the financial costs associated with an accident.
Having car insurance covers you on the road and when your car is parked. Should someone break into your vehicle or hit it while it's parked, the insurance covers you against damages or stolen goods, including if the car itself is stolen. Good times.
What happens when I buy a new car?
When you buy a new car you'll also need to insure it. Fortunately, it's a pretty straightforward process: just need to notify your current provider that you're changing vehicles. That's it. They'll work out if need to pay any additional costs or if you're due a partial refund and the rest pretty much takes care of itself.
Failure to do so, however, can lead to a fine, points added to your licence or even having the car seized because your new car would be classed as uninsured. Bad times, so make sure you change insurance to a new car when buying your next vehicle.
If you want to get an idea of insurance costs or your dream car before you buy, you can easily get an idea from which insurance group it is in - your dealer will be able to tell you this.
Do I need to cancel my insurance policy and take out a new one?
You don't need to cancel your insurance policy. Instead, notify your insurer that you will be buying a new car along with the date you plan to complete the purchase. They will set a date for your updated insurance policy on your new car to kick in.
You'll need to inform your insurer about the change of vehicle. Otherwise, you could find that your policy is invalidated, with future claims possibly rejected. Most insurance companies should allow you to update your policy to the new car without much fuss.
Is there a charge?
There's usually an administration charge to amend the terms of your cover, which costs in the region of £25. This will be set out in your insurance policy's terms and conditions when you first get cover, so always be sure to check the T&Cs to see the price of the admin charge.
If you're buying a more expensive or powerful car, expect to pay a higher premium as the insurer is taking on greater risk. You can look for a new insurer (more on that in a bit) who offers competitive deals if you're not happy with the new premium.
How do I transfer the policy?
Once you've told your insurer that you'd like to update the policy to a new car, the change should happen automatically when you become the official owner. Everything can be done over the phone or, in some cases, online.
Can I go with a new insurer?
The easiest option usually involves staying with your current provider. However, there may be some scenarios where you believe the new premium is too high and wish to shop around for a better insurance deal. In that case, your best bet might involve visiting a car insurance comparison website and seeing which deals are available. You can also contact insurance providers directly.
What do I need for cover?
If you wish to cover your car with a new insurer, you will need the car registration details along with your own information, such as an address, car driving history and licence details. But most important thing is to arrange cover so that it starts when you get your new vehicle.
Getting Car Insurance In Advance
As you can see, you simply need to have your insurance ready to go from the day you get the keys to your new motor. You can arrange it in advance but will need to keep the cover on your current car while you're still driving it. We recommended sorting it all out in advance, as it's one less thing to worry about and it's easy enough to forget to change your insurance in the excitement of picking up your new vehicle.