New car: Can I transfer my insurance policy?

So, you’ve got an advert up on Gumtree, a piece of paper in the windscreen with the price and your eye on a shiny new set of wheels. The time has almost come to say goodbye to your old car ... almost. You still have to sort out your car insurance.

The good news is that most insurers will allow you to transfer your current policy to your new vehicle. Ultimately, this means less fuss for you but is it the best option for your wallet? 

Transferring car insurance

Let’s start at the very beginning: as long as your insurer allows you to transfer your policy (which as we’ve said, most do), the ‘how’ part is usually fairly straightforward.

You can do this by either giving your insurer a ring or changing your car details online. In other words, you’ll have the same policy but with a different car listed on it.

Will the premium be affected?

It is highly likely that your car insurance premium will change, if you switch cars. The age, make and model of your car are some of the key factors that insurers use to work out how high or low your payments should be.

So, if your new car is indeed a newer model and is worth more, then your insurance premium could go up. Or, if your new car has more safety features, then your bill could be less. Ideally, you would want to call your insurer before you make any big decisions. That way you can tell them what particular car you’re looking at and they can give you an estimate of how much more or less your insurance premium will be.

Update or switch?

Updating might not be too much of a hassle, but the question is should you stick with your old car insurance policy in the first place?

Seeing as you’re making a change already, now could be the time to review not only how much you’re paying but also what you’re paying for. Remember that you originally chose this policy for your (soon to be) old car. Maybe you’ll want new for old replacement cover for your new wheels, or a higher level of cover for your personal items.

Plus, if your insurer is going to up the price of your premium, you might want to shop around for a more competitive deal anyway. 

Compare some of the comprehensive policies on offer below to get started.