This article is a brief guide to help you understand how to switch car insurance to new car.
Switching to a new car is exciting but before you start driving around in your new vehicle you would certainly want to know how to switch car insurance to new car too, right?
Transferring insurance from one car to another could help you get the best out of your existing car insurance policy and informing your insurance carrier about your new car will prevent you from ending up uninsured. However, if you end up being uninsured that would be regarded as illegal so you should not let any insurance company leave you high and dry when you make a claim.
In 2011, Continuous Insurance Enforcement Law was introduced by the Canadian government which states that every car has to be covered by a car insurance policy, be it on road or off road. However, if the same car has been declared off the road in accordance with a Statutory Off Road Notification then it offers an exception to the case.
Drivers are bound to get their cars insured under the Continuous Insurance Enforcement Law and negligence in doing so can result in fine, addition of points to their license or their car might get seized right away.
Moreover, let’s deeply look into the details of how to switch car insurance to new car so you clearly know what is to be done when changing cars.
Transferring insurance from one car to another
It’s not mandatory to apply for a new insurance policy when buying a new car as almost all insurance companies allow switching car insurance from your old car to the new one. However, it is quite important to inform your insurer timely about when you need the terms of the cover to change in accordance with the changing car insurance mid policy. On the contrary, if you do not inform your insurer about this beforehand then you might end up getting your cover policy invalidated and you could face rejection when it comes to making any claims in future or at the very least paid at a reduced level.
All you need to do while transferring insurance from one car to another is call your insurance carrier. You will be charged according to the terms and conditions set in the policy but you need to make sure that your insurer informs you of those policy terms and conditions too.
After the insurance company collects the details of your new car, you will be told of the total cost of changing the cover. And if you are satisfied with the new terms and conditions, you shall make the decided extra payment and wait to receive your updated policy documents either online or in the post.
Does it cost to change car on insurance?
The answer is yes. It does cost to change the car on insurance and it will generally call you to pay an administration charge to amend the terms of your cover. These charges are stated in the terms and conditions of your policy.
You are roughly expected to pay around £25. However, there is a possibility that you might also have to pay an extra premium making up for the extra risk that the insurer is taking. You need to make sure that your insurer is well informed of all the material changes affecting your insurance before renewal. For instance, if you change your address or get a driving conviction or modify your vehicle, you need to notify your insurer beforehand.
Moreover, if you feel that the charges you face for switching car insurance are unfairly high, you should let your insurer know straight away. In situations where changing car insurance mid policy does not satisfy you, you can refer the case to higher authorities like the Financial Ombudsman Service.
Can I change car insurance before renewal date?
You must be thinking if you need to switch to a new insurer to get your insurance policy transferred to the new car. Well, not really. In most cases, the cheapest option when buying a car will be sticking to your existing insurer and paying the administration charge to transfer your policy to the new vehicle.This is because cancelling an ongoing insurance policy will cost you more than the admin fee of getting the policy renewed.
However, if your insurance policy is about to reach the renewal date, taking out a new one with a rival insurer might make more sense rather than paying for the administration fee. This is possible in case your insurance company wants to level up your premium because of the type of car you’re buying. And once your insurance policy reaches its renewal date, it’d be smart to shop around and look for a cheaper deal.
How long do I have to change my car insurance?
If you are not buying a brand new car then you need to make sure that your insurance starts on the day you pick it up. If you do not do so then you’re maximising the risk that comes along with unforeseen circumstances like meeting an accident on your way to home and not getting paid for the loss, instead you could face a £300 fine, six penalty points and even the loss of your car.
On the contrary if you’re buying a brand new car you might receive free insurance for the first few days. Dealerships like Hyundai, for instance, offer free seven-day insurance to allow buyers the chance to arrange cover of their own.
Moreover, make sure to check that you are protected before driving away.
Dealerships also tend to offer free car insurance for the first year or breakdown cover. However, if you already have cover in place then you need to look for yourself if opting for free insurance is worth it or not. That Is dependent on the time duration of your current policy and the extra amount you’re being asked to pay by your insurer to cover your new car or cancel it in case you decide to switch to a new insurer.
Moreover, the admin charges for switching car insurance from one insurer to another are set out in the policy terms and conditions that your insurer informs you about,
When buying a new car, it is advisable to stick to your existing insurer and pay the extra administration charges of getting your cover renewed or amended for the insurance of a new vehicle. You should keep in mind that the cost of cancelling an existing policy to start a new one will outweigh the admin fee.
If you have thoroughly gone through this article then you certainly know how to switch car insurance to new car, now.