How to change my car insurance when buying a new vehicle
When buying a new car, always check how much the insurance will be before you purchase it.
In any event, as soon as you purchase a new car, you are immediately responsible for insuring it, so don’t delay in getting car insurance in place. You need to arrange the insurance before you pick up the car, so the date of the insurance policy should be the date you pick up the new vehicle.
If buying from a dealership, they may offer insurance with the new vehicle, so check that too.
How to transfer a vehicle
Simply call your insurer and follow it up by email if you can. If you are happy with the admin charge, you will normally be asked to make a payment and your insurer will send you the relevant document.
Charge to change vehicles
You are more than likely going to be charged a fee to make changes to your insurance policy. Most insurers charge an administration fee to change vehicles. If the cost is too high, you can always complain to your insurer. If you remain unhappy, you can submit a complaint to the Financial Ombudsman. You could also work out whether it would be more cost-effective for you to cancel your policy and switch to another provider.
Staying with the same insurer
You need to work out what works best for you. Once you work out all the costs, it may be financially cheaper for you to stay or whether it is more expensive to cancel. If your current policy is coming to an end, it may work out cheaper to switch. It is always better to research first before you make a decision.
Do you need to cancel your current insurance policy?
Not always. You should always first contact your current insurer to advise them of your change of vehicle and you can also check whether you can change vehicles and the likely cost. Most insurance companies will allow you to transfer your current policy to your new vehicle.
Once you have bought your new car, are you still liable to insure your old one until it is sold?
Yes. Since 2011, the Government implemented a Continuous Insurance Enforcement to enforce owners to cover every vehicle, whether it is on the road or not. An exception is made, however, if a vehicle that has been declared off the road by a SORN (Statutory Off Road Notification).
Can you drive a vehicle you have just bought without insurance?
No. You need to get car insurance in place before you drive it.
Have you been offered free insurance on the new vehicle from a dealership?
If you have, you need to work out your figures. Will it cost you to cancel? If you have a good deal already with your insurer and the cost to cancel is quite high, you could ask the dealership if they could reduce the cost of the car without the free insurance.