Updated: May 20, 2024
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Getting a new car doesn't mean starting from scratch with your insurance. You can transfer your insurance without having to start a new policy. You can also tweak your coverage to suit your new needs.
Many insurers give you up to 30 days to transfer the insurance from your old car to the new one. This way, you won't have a lapse in coverage.
It's important not to drive without insurance. You can even update your insurance with a few details about your new car before it's officially yours.
You don't have to open a new car insurance policy when buying a new car. You can transfer your coverage from your previous vehicle to the new one.
Transferring your insurance to your new car is the perfect opportunity to reassess your coverage needs. You may want to add comprehensive, collision or gap insurance or increase your coverage limits.
Insurers typically offer a seven to 30-day grace period for you to inform them of your purchase and update your policy.
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Transferring your insurance to a new car doesn't have to be complicated or intimidating. Usually, all you need to do is call your agent. Some insurers also allow you to modify your policy online. To get an updated quote, you will need to provide your new vehicle's details, like its VIN, make, model and year.
Given that you're insuring an entirely new vehicle, and premiums are significantly influenced by the car's value, make and model, you'll need a fresh quote from your car insurance provider.
This is also a great time to reevaluate your coverage — you may want to increase limits or add other types of insurance, to protect your finances in case of an accident. Many people transfer their policy as-is, but if your new car has a higher value than your previous one, you might end up paying for repairs out of pocket if you sustain damages.
A phone call should be all it takes to let your insurer know you're buying a new car. It's best to get in touch with them even before your purchase is complete. This increases the likelihood of completing the transfer before your new vehicle is released. In some states, you need proof of insurance for your car registration.
It's a safe assumption that your rates will increase if your new car is worth more than your old one. Your insurer needs the following information to make an accurate quote:
Let your insurance provider know if anyone in your household will be driving your car. Many insurance companies require all household members to be listed as insured drivers.
MoneyGeeks's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jul 26, 2024
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Your insurance provider might charge an administrative fee for transferring car insurance. If coverage changes, you could either pay the difference upfront or spread it across future payments.
Your actual rate may vary depending on several other factors, such as your car's make, model and year. Increasing your coverage limits can increase your premium as well.
Your policy premium will probably increase if your new vehicle is worth more than your old one. The average cost of insurance is $1,424 per year. That's for a full-coverage policy with 100/300/100 liability limits.
The 100/300/100 limits mean that if you cause an accident, your insurance can pay up to specific amounts that correspond with those numbers. They'd pay up to $100,000 for property damage (such as the cost of repairs) for the other driver's vehicle, $300,000 for the other driver's medical expenses and a cap of $100,000 for each injured person.
It's best to request a car insurance quote before finalizing a new vehicle purchase so you know what to expect regarding rates and coverage. You can shop around, but you don't have to open a new policy.
If you plan to continue driving your old car and are adding the new vehicle to your policy, you could save money by taking advantage of multi-car insurance policies.
Remember, you're not bound to one insurer. You can always shop around for other policies. If you find better, cheaper coverage elsewhere, you can switch and cancel your car insurance at any time.
If you find your premium rates too expensive after getting an updated quote, remember that you can always shop around for other policies.
Although it's best to add your new car to your policy immediately, some insurers offer a grace period, giving you more time to complete the process if needed.
Generally, a grace period is the amount of time past your due date that you have to pay your premium before your coverage lapses. When you buy a new car, the grace period refers to how much time you have to tell your insurer about your purchase and update your policy.
Grace periods vary depending on the insurer but usually last seven to 30 days. For example, Progressive provides a 30 day grace period. Check with your insurer to find out how long your grace period is.
When you purchase a new car, auto insurance companies usually give you a grace period of seven to 30 days to update your policy. You may drive your new car even if you haven’t officially added it to your policy yet. You may be illegally driving an uninsured vehicle if you continue to use your car after the grace period without transferring policies or purchasing a new one.
The kind of coverage you need is also dependent on whether you’ve fully paid for your car or if you financed or leased it:
The table below shows what insurance type is most appropriate for each.
Required Coverage | Minimum Coverage | Comprehensive | Collision |
|---|---|---|---|
Financed vehicle | ✓ | ✓ | ✓ |
Leased vehicle | ✓ | ✓ | ✓ |
Owned vehicle | ✓ |
Car insurance laws vary by state, and the minimum car insurance requirements differ depending on where you live. Most state minimum policies only require liability coverage. With liability-only coverage, your insurance won't cover the cost of repairs if your vehicle is damaged.
Consider increasing your coverage limits, especially if you bought a high-value vehicle. For example, if your collision insurance covers up to $50,000, but your repair costs after an accident turn out to be $75,000, you'll pay the difference out of your pocket.
Getting a full-coverage policy with comprehensive and collision insurance may be better if you don't want to risk a substantial out-of-pocket expense.
It's a great idea to revisit how much car insurance you really need when you're transferring your insurance from your old car to your new vehicle. This is an excellent time to determine whether you should modify your policy.
When estimating the cost of transferring car insurance, several factors come into play, including:
The table below is a handy tool that allows you to adjust for your car's make and model, age and desired coverage to get an estimated cost. Always consult with your insurance provider or agent to get the most accurate information.
You can transfer insurance from one car to another when you purchase a new vehicle. Here are the most common questions about how this process works.
Yes, you can transfer insurance from your old car to your new one. Usually, calling your insurance agent and informing them of your purchase is enough to start the process. Some insurers even allow you to change the vehicle included in your policy online.
The cost of transferring the insurance to a new car varies between insurers. Generally, though, the following may contribute to your expenses:
Getting new car insurance often indicates having different coverage needs. In addition to processing fees, consider how much it costs to insure a new car.
Insurers give different grace periods for you to get coverage for your new vehicle. Usually, it’s between seven and 30 days. You can contact your insurer directly to determine how much time you actually have.
After you exhaust the 30-day grace period, you will be driving uninsured. MoneyGeek recommends settling all your insurance needs before purchasing your new car. It will also allow you to reassess your needs and reevaluate how much insurance you need.
No, but for convenience, you can insure up to four cars with the same company under one policy. However, if you’re insuring a classic car, you will need to enroll in a separate classic car insurance policy.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
