Understanding Insurance

Your guide to insurance and changing cars

Getting a new car can be an exciting time but you need to make sure you keep your insurance up to date when this happens. This is because your old policy will not cover you for your new car. If you do not let your insurer know of this change then you would be driving your new car illegally, without insurance.

How quickly do I need to let them know?

When getting a new car, you need to update your insurance details as failing to do so is a criminal offence. You have to let the insurer know exactly when you are getting the new car, including when it is being delivered (if you are doing this) or when you are going to pick it up. 

If you are getting a brand-new car from a dealership then this may include insurance for the first couple of days after you collect it but make sure you double check this in the terms and conditions of the purchase. 

How do I transfer insurance to my new car?

If you are planning to stay with your current insurer, you will need to get in touch with them to let them know what’s going on. Your insurer will then re-calculate your price and offer you the option to either re-insure your new vehicle or cancel the policy. Be aware, if you have upgraded your car then your re-calculated insurance policy may be higher than before. 

Does it cost anything to transfer my insurance? 

If you stay with your current insurer, you might have to pay a mid-term-adjustment fee to change your policy plus a potential change in premium, up or down, but this will depend upon the individual insurance company. 

What if I want to change insurer?

When you get your new car, you can decide to cancel your insurance with your current provider and find a new insurer. It is important to remember that changing insurer part-way through your policy may come with a cancellation fee which can often be expensive. As such, it might not be cost-effective to change your insurance provider, unless your policy is due to expire soon anyway. 

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