How to Transfer Auto Insurance to a New Car in 2024
If you want to transfer auto insurance to a new car, you must inform your auto insurance company. Your insurer will help you assess your coverage needs during the transfer of auto insurance to your new vehicle. For full coverage, your average monthly auto insurance rates will be around $79.58. Read our guide for more details.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Aug 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Aug 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Transferring insurance to a new car is not difficult to do
- Be sure to check with your state’s auto insurance laws before making you transfer auto insurance to a new car
- If you decide to keep your old car, you won’t be able to legally drive it without insurance
Transferring auto insurance is part of every new car purchase; thankfully, it’s not difficult to do. While you may have to jump through hoops to get a good deal, you can often transfer auto insurance to a new car with a simple phone call or online transactions.
The only caution in purchasing a new car and transferring your auto insurance is to be sure you carefully follow auto insurance laws.
States take insurance lapses very seriously — they won’t be lenient if you mess things up. As long as your car dealer, bank, and insurance company are well informed and coordinating, you should be okay. To change the car listed on your insurance, all you’ll need to do is contact your insurance company to get the ball rolling.
Enter your ZIP code above and start comparing affordable auto insurance quotes now if you are ready to buy or transfer auto insurance to a new car.
What to Do When Transferring Auto Insurance to a New Car
What is my actual part in transferring auto insurance? Your auto insurance company takes care of all the paperwork and state filings, so you won’t have to worry about any of the technical parts of switching car insurance to a new car. But you do need to contact them either online or over the phone to tell them about your new purchase.
If you forgot to transfer insurance to your new car you can face fines or other penalties if you are caught driving without proper auto insurance coverage.
Most of the larger, nationally known insurance companies allow customers to alter their policies online. If yours does, you’ll be able to log on to your account, add your new car to your policy, and drop your old one at the same time.
How long do you have to transfer insurance to a new car? You’ll need to coordinate the dates so there’s no lapse, but you can accomplish this by allowing them to overlap by one day.
If you finance your new car purchase you’ll be required by your insurance company to provide the name and address of your lender. That’s because they need to know who else has a financial interest in the vehicle should it be totaled or stolen.
Sometimes this information can be entered online while other times it can only be done over the phone or in person. You’ll have to check with your car insurance company in order to know what’s required of you when transferring insurance to another car.
What if I need additional auto insurance coverage?
The issue of needing additional coverage is actually quite common. People who previously drove an old junker with no collision coverage will find that a brand-new car will require collision or comprehensive by the bank financing it.
Fortunately, you can add to this coverage at the same time you’re transferring car insurance to another car.
The change to your policy will be made instantly, with no money up front in most cases, but you will receive a bill in the mail for the extra charges.
Take a look at the table below to see the average cost in the U.S. of adding extra coverages like collision and comprehensive.
Average Auto Insurance Rates by Coverage
Coverage Types | Average Annual Auto Insurance Rates | Average Monthly Auto Insurance Rates |
---|---|---|
Comprehensive coverage | $150.36 | $12.53 |
Collision coverage | $299.73 | $24.97 |
Liability coverage | $516.39 | $43.03 |
Total Full Coverage Cost | $954.99 | $79.58 |
One thing you do need to know about transferring insurance from one car to another is the fact that insurance companies tend to use policy changes such as these as an opportunity to update your coverage.
So when you transfer your insurance they’re likely to ask you the same questions they did when you first got your policy.
These questions will include the distance you drive to work every day, who drives your car most often, whether or not it’s stored in a garage, etc. Make sure you familiarize yourself with the different types of auto insurance coverage, so you can make an educated choice.
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What Happens to Your Old Car After Auto Insurance Transfer
Obviously, if your old car has been traded in, the dealer will dispose of it either through a sale or by scrapping it.
Either way, once the dealer takes possession of the vehicle you are no longer responsible for it in any way.
All you need to worry about is making sure your new car is properly registered and insured. You also might want to check with your insurance company two to three days after the transaction to make sure your old car has been taken off your policy.
If you decide to keep your old car, you won’t be able to legally drive it without insurance.
In some states, like New York, the New York DMV requires drivers to surrender their plates and registration if insurance coverage lapses. This is to help prevent drivers from getting on the road without insurance.
In other states, where tags are permanently affixed to a vehicle for its lifetime, your registration will probably still be canceled once the insurance coverage is removed.
Rest assured that your insurance company will notify your state electronically when the insurance on your old car is dropped.
Fees for Auto Insurance Transfer to New Car
In most cases, you won’t be charged a fee for transferring your policy from one car to the next. That’s because you’re not really transferring your policy; you’re simply adding a new car and dropping an old one.
You may see a rise in your premiums, depending on the features of a new car, but there shouldn’t be any additional fees for transferring auto insurance.
If your insurance company does charge you a fee for a car insurance transfer, and that bothers you, you can always shop around for a new provider.
Assess Your Auto Insurance Coverage Needs For Your New Car
Before you buy auto insurance on your new car make sure you have all of the coverage you need.
Talk to Your Auto Insurance Agent
Talk to your current agent and let them know you are buying a new car. It’s a great excuse to review your current policy and see what discounts or savings may be available to you.
Shop and Compare Auto Insurance Quotes
This is also an opportunity to shop around for an affordable new car auto insurance company. You may be able to find cheap new car auto insurance quotes from a competitor in your area.
There are several circumstances that might call for the transfer of auto insurance from one person to another
We hope our guide answered all your questions on how to transfer car insurance to another car.
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Considerations When Transferring Auto Insurance to a New Car
Can you transfer car insurance to another person?
There are several instances where an individual can transfer his/her car insurance to another person, most commonly during the change of car ownership.
Can you transfer car insurance to another state?
Most states require you to carry auto insurance but the coverage limits vary from state-to-state. Check with your current auto insurance agent to see if they can cover you in the new state and make any necessary updates to your policy.
If you are ready to transfer auto insurance to a new car or find better new car auto insurance rates, compare auto insurance rates online by entering your ZIP code below.
Frequently Asked Questions
Can I transfer my existing auto insurance policy to any car I purchase?
In most cases, you can transfer your existing auto insurance policy to any car you purchase. However, it’s essential to review your policy terms and conditions or consult with your insurance provider to confirm if any restrictions apply. Additionally, keep in mind that factors like the vehicle’s type, value, and intended use may affect your insurance coverage and premiums.
Is there a time limit for transferring auto insurance to a new car?
The time limit for transferring auto insurance to a new car may vary depending on your insurance provider and policy terms. It’s best to inform your insurance company as soon as possible after purchasing the new vehicle. Promptly notifying them helps ensure uninterrupted coverage and gives you time to review and adjust your policy if needed.
Will transferring auto insurance to a new car affect my premium?
Yes, transferring auto insurance to a new car can affect your premium. Different vehicles have varying insurance rates based on factors such as their make, model, year, safety features, and theft rates. Additionally, your insurance company may adjust your premium based on the updated vehicle details and any changes you make to your coverage.
Can I transfer insurance coverage from a leased car to a new car purchase?
Yes, you can transfer insurance coverage from a leased car to a new car purchase. However, when leasing a vehicle, the leasing company often requires specific insurance coverage limits and may have additional requirements. Ensure you understand the terms and conditions set by your leasing company and update your insurance accordingly.
Do I need to inform my insurance provider if I plan to sell my old car?
Yes, it is crucial to inform your insurance provider if you plan to sell your old car. They need to update your policy and remove the sold vehicle from your coverage. This ensures that you’re not paying premiums for a vehicle you no longer own and that you’re adequately covered for the new car purchase.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.