What Information Will Your Insurer Need?
To transfer your policy to a new vehicle, your insurance provider might require specific details about the car you’re insuring. These details help the insurer assess the level of risk and determine if any changes to your premium are necessary.
- Make and model: Your insurer needs to know the exact make and model of your new car, as some cars are more expensive to insure than others.
- Registration number: The new vehicle’s registration number may be added to your policy to ensure it matches your insurance details.
- Engine size and modifications: Any changes to the car, such as modifications or a larger engine, can affect your premium, so it’s important to disclose these details.
- Mileage and usage: Your annual mileage and the way you use the car (e.g., for commuting or social use) could impact your premium, so your insurer could ask for this information as well.
Providing accurate information ensures your policy reflects your new vehicle and avoids any issues should you need to make a claim.
Will Transferring Your Insurance Change the Premium?
Switching your insurance from one car to another might likely result in a change to your premium. The cost of your insurance is based on various factors, including the car’s value, safety features, and how much it might cost to repair or replace.
- Car value: A more expensive car may generally result in a higher premium, as it may cost more to repair or replace in the event of an accident.
- Safety features: Cars with advanced safety features, such as autonomous braking or lane-keeping systems, may lower your premium.
- Performance: High-performance vehicles, or those with larger engines, tend to have higher premiums because of their increased risk of being involved in accidents.
It’s not uncommon for your premium to increase or decrease when transferring to a new vehicle. Make sure to factor this in when budgeting for your new car, as insurance costs can vary significantly depending on the car you choose.
How Does the Process of Transferring Insurance Work?
Transferring your car insurance to a new vehicle is typically a simple process, but it’s important to follow the correct steps to ensure a smooth transition. Here’s what you need to do:
- Contact your insurer: As soon as you’ve purchased your new vehicle, inform your insurance provider. Most insurers allow you to transfer your policy over the phone or through an online portal.
- Provide the required details: Give your insurer the details of your new car, including the make, model, registration number, and any modifications.
- Update your cover: Your insurer may assess the new vehicle and adjust your policy accordingly. You’ll be informed of any changes to your premium at this stage.
- Confirm the transfer: Once the details have been updated, make sure to confirm the transfer with your insurer to ensure that the new vehicle is fully covered.
In most cases, the transfer can be done instantly, allowing you to start driving your new car with the peace of mind that you’re fully insured.
Can You Transfer No-Claims Bonus to a New Vehicle?
Your no-claims bonus (NCB) is an important part of your insurance history, as it can significantly reduce your premium. When transferring your policy to a new car, it’s reassuring to know that your no-claims bonus might usually carry over.
The NCB you’ve built up is tied to you as a driver, not to the vehicle, so it can be transferred to your new car with ease. This means you won’t lose your discount when upgrading to a new car. However, it’s important to remember that your NCB can only be applied to one policy at a time. If you’re keeping both vehicles, you may need to take out a separate policy for the second car.
Are There Fees for Transferring Car Insurance?
Whilst transferring your insurance to a new car is often straightforward, it’s worth noting that some insurers charge an administration fee for making changes to your policy. These fees vary between providers, but they typically cover the cost of updating your details and issuing new documents.
- Administration fees: Some insurers charge a small fee, usually between £20 and £50, to transfer your policy to a new car. This fee may be disclosed when you make the change.
- Mid-term adjustments: If you’re changing vehicles partway through your policy term, you might also see a small adjustment to your premium, which could result in a refund or additional charge.
It’s always a good idea to ask your insurer about any fees before transferring your policy, so there are no surprises.
What Happens If You Don’t Notify Your Insurer?
It’s truly vital to notify your insurance provider whenever you change vehicles. Failing to inform them of your new car can lead to serious issues if you need to make a claim. Your insurance policy is tailored to the specific vehicle you’re driving, and if the car you’re driving doesn’t match the one listed on your policy, your cover could be invalidated.
- Claim denial: If you get into an accident without updating your policy, your insurer may refuse to cover the cost of the damage, leaving you responsible for the repair bills.
- Legal issues: Driving without the correct insurance is illegal in the UK and could result in fines, points on your licence, or even disqualification.
To avoid these risks, always make sure to inform your insurer as soon as you change vehicles, so your cover is kept up to date.
What If You’re Selling or Scrapping Your Old Car?
If you’re selling or scrapping your old car, you may wonder what happens to the insurance on that vehicle. In most cases, once the policy has been transferred to your new car, the old vehicle could no longer be insured. It’s important to ensure you’re not leaving any vehicle uninsured whilst it’s still on public roads, as this can result in penalties.
- Notify the DVLA: If you’re scrapping or selling your old car, make sure to notify the DVLA to avoid any legal issues regarding tax and insurance.
- Cancel additional policies: If your old car had a separate insurance policy, make sure to cancel it once the car is no longer in your possession.
It’s regularly seen as a smart decision to manage both your old and new vehicles carefully to avoid any insurance gaps that could lead to legal or financial problems.
Conclusion: Stay Protected During Your Vehicle Change
Transferring your car insurance to a new vehicle is a relatively simple process, but it’s important to get the details right to ensure you stay protected. Whether you’re upgrading to a newer model or switching cars altogether, keeping your insurer informed and up to date could help you avoid any issues and ensure your policy remains valid.
To make sure you’re getting the best deal and the right level of cover, take the next step and explore your options for comparing car insurance policies.
Why not get quotes now?