Transferring insurance from one car to another
Key takeaways
- You can often transfer insurance to a new car, but sometimes starting a new policy may be cheaper
- Inform your insurer before you drive your new car to stay legally covered
- Always compare quotes before switching to get the best price for your new car
If you’re replacing your car, you’ll need to update your policy. This guide explains how to transfer insurance to a new car, with tips to get the best price and stay fully covered.
Can you transfer car insurance from one car to another car?
Yes, most insurers allow you to transfer insurance from one car to another if you stop using your old car. In insurance terms, this is called a Mid-Term Adjustment (MTA) and is permitted on most 12-month policies.
You'll need to contact your insurer and provide your new car’s details. The insurer will then update your policy and confirm any changes to your premium. The policy remains active until the original renewal date, but the details and cost are updated.
A straight transfer may not be possible in some cases, such as:
- High-risk vehicles: Highly modified or high-performance cars may fall outside the insurer’s risk appetite, meaning the level of risk they're prepared to take on.
- High-value vehicles: Luxury cars, limited editions, or rare classics may require a bespoke quote due to increased risk or repair costs.
Transferring insurance from one car to another
To transfer your insurance from one car to another, follow these steps:
- Gather your new car’s details: Include the make, model, any modifications, registration number, purchase value, and purchase date.
- Contact your insurer: Request a policy transfer. Online or app-based changes are often cheaper and quicker.
- Review the new quote: Check for extra fees such as admin charges.
- Compare quotes: Check if switching insurers could save money.
- Confirm the change: Pay before collecting the car to avoid any gaps in cover.
Swapping insurance over to a new car: When to tell your insurer
When swapping insurance to your new car, you should tell your insurer as soon as you decide to buy it. It's important that your updated policy starts before you drive the car home.
If you’re trading in your old car or adding another one, update your policy on the same day. Some insurers offer a short grace period, but it’s safest to notify them straight away.
If you’re financing or leasing the car, you’ll usually need proof of insurance before you can collect it or before it’s delivered to you.
What if I want to keep my old car?
If you want to keep your old car, inform your insurer so both vehicles are covered.
If the old car won’t be driven or parked on public roads, you can declare it SORN (Statutory Off-Road Notification) with the DVLA. This means no road tax or insurance is needed, but the car can't be driven on public roads.
If you plan to drive it again, you'll need to reactivate the insurance and tax before taking it on the road.
How much will it cost to transfer insurance to new car?
Depending on your new car, the cost of your policy may go up, go down, or stay about the same when you switch, but you’ll usually still have to pay a fee.
This can include an administration fee, which is a fixed charge for updating your policy. Fees vary by insurer and are usually cheaper if you make the change online rather than by phone.
You may also face a premium adjustment, which is the change in your total annual cost based on how expensive your new car is to insure. If your new car is more valuable, more powerful, or more costly to repair, your insurance could increase.
It’s worth comparing quotes before transferring your policy. If another insurer is cheaper, you could cancel your existing policy and start a new one. You’ll normally receive a refund for any unused months.
What should I do if my premium goes up?
If your premium increases, don’t automatically accept it. Compare car insurance quotes to find the best value, as another provider may offer a cheaper policy.
Next, compare the total cost of staying with your current insurer, including any admin fees, with the cost of a new policy plus any cancellation fees from your old policy.
If you decide to stay with your current insurer, you can pay the difference in a lump sum or spread it across your remaining instalments.
What happens if I forget to update my car insurance?
Failing to update your car insurance when you get a new vehicle can have serious legal and financial consequences. Driving without the correct cover is illegal, and your old policy will not protect your new car.
You could face a £300 fine and six penalty points on your licence, and the police may seize or even destroy the vehicle. If you have an accident, your insurer will refuse any claim, leaving you responsible for all damages, injuries, and legal costs.
On top of this, a conviction for driving uninsured (IN10) can make your car insurance premiums significantly higher for years to come.
Should I transfer my policy or buy a new car insurance policy?
Deciding whether to transfer your existing car insurance or start a new policy depends on cost and convenience.
Transferring is simple and keeps you with your current provider, but it may come with admin fees and a higher premium if your new car is more expensive to insure. Starting a new policy can sometimes save you money or offer better cover tailored to your new vehicle.
The best approach is to compare the total costs: add your transfer cost and any admin fees, then compare this with the cost of a new policy plus any cancellation fees from your old insurer.
Shopping around ensures you choose the option that offers the best value and protection for your new car.
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