How Do I Change My Car Insurance To My New Car?

Chloe Murphy 4 minutes Published: 08/11/2021

When you’ve just about run your old banger into the ground, there’s nothing quite as good as buying a new car

Or maybe you hadn’t planned on switching cars yet, but you’ve seen a deal that you just can’t pass up.

But if you’ve still got an existing insurance policy on your current car, what do you do?

If you decide to change cars during the term of a policy, you’ll have to inform your insurance company. Fortunately, most providers will be happy to transfer your insurance over to your new car. 

In this article, we’ll run through what you need to do to change your car insurance.

How to transfer your car insurance policy

If you’re planning to change over your car insurance, it’s best to let your provider know as soon as possible. You should call them up and provide:

  • Your policy number 
  • Details for the existing car
  • Registration number of your new car

If you haven’t bought the car yet, it’s still beneficial to call in advance. Giving them the model or trim of the car you’re looking at will help them to give you an idea of what your premium might be. Chances are, it’s not going to cost exactly the same. Your premium may go up or down depending on the model of car you’ve chosen.

Just remember that your renewal date will remain the same as when you first took out the policy. 

Is there a one-off cost to do the transfer?

It’s very likely that there will be a one-off cost in order to complete the transfer of your insurance. Many providers call this an administration fee, and it can be anywhere up to around £30 depending on who your insurance is with.

Will transferring push my monthly premium up?

Like we mentioned before, it’s unlikely that your insurance cost won’t change at all when you transfer. A number of different factors influence the average insurance cost, one of the most significant being the car itself.

If you’ve changed over and you’re suddenly wondering why your car insurance is so expensive, it’s probably down to the car you’ve chosen. The value of the car is one of the most influential factors when it comes to insurance premiums, as it’s going to be more expensive for them if you make a claim. On the flip side, your insurance may go down if your new car is of lesser value. 

If you need more guidance on what contributes to the cost of your insurance, check out our blog on how car insurance works.

Do I have to stick with the same insurance policy?

Sticking with your current provider is undoubtedly the most straightforward option. You just have to call them up, pass over your details and potentially pay a small admin fee. 

But if you’d prefer to shop around, your policy isn’t set in stone. You can cancel your current policy and take out one elsewhere if you can find it cheaper. 

It’s important to bear in mind though that you’ll probably lose your no claims bonus, and have a cancellation fee. Some cancellation fees can be on the costly side, so it’s worth checking out whether the savings on the new policy will be negated by the cancellation charge. 

What if I get free insurance with a new car?

Free insurance? Surely not… The idea might sound like a hoax, but there are numerous offers claiming that they’ll provide free insurance with your new car.

So, what’s the reality?

Though they claim to be free, you’re going to be paying for the insurance somewhere. For most manufacturers or dealers, this comes in the form of an additional charge to your finance package. Rather than paying an individual fee to your insurance company, it simply gets added on to the monthly cost for your car.

This is really designed with insurance for a new driver in mind, but doesn’t necessarily mean it’s going to be cheaper. It’s worth considering these deals when looking for the best first car, but you should still check out the cost of insurance separately. Using a car insurance comparison site like CompareTheMarket can help you compare the lowest premium costs across the cars you’re looking at.

If you decide to go ahead with a deal offering ‘free’ insurance, you’ll simply need to cancel your existing policy.


Car insurance can feel like a hassle, especially if you have to change it over. But it’s really important to have it organised before you plan to drive your car.

If you’ve bought your car on a whim at a dealership, you can get temporary cover. This can usually be done through the dealership, or you can quickly compare short term quotes through comparison sites to get you covered straight away.

Chosen to lease a car instead? Remember that typically, lease cars don’t include insurance, so you’ll need to get cover just like any other vehicle. If you’re worried about the worst happening, you can even get lease gap insurance. This essentially covers the difference between what your insurer pays out and the remaining finance owed if it’s found to be a complete loss. If you’re interested, check out our blog 'Is Gap Insurance Worth It?'