How to transfer old insurance to your new car

Steps to transferring your insurance to your new car

To transfer insurance to your new car, contact your insurer, provide the vehicle details, and choose the date coverage should start. You can do this over the phone, on the carrierAn insurance carrier is the company that provides your car insurance policy and pays claims.’s website or in the mobile app. You’ll need the VIN, purchase date, garaging address and lender information if you finance or lease. Confirm your proof of insurance before driving the car.

Contact your insurance company as soon as possible

Let your insurance provider know as soon as you can about your new purchase. You can do that online or through a mobile app at any time of day, or call your insurer. Companies have different grace periods to insure the new vehicle, which also depends on the state in which you live. This period can range from a few days to nearly a month.

“Typically, drivers have about 30 days to switch their insurance from their old vehicle to a new vehicle,” says Lauren McKenzie, an agent with A Plus Insurance in Liberty, South Carolina. “However, keep in mind that if you need different coverage on the newer vehicle, it may not be included in your policy.”

There is no reason to wait, as you want to avoid the potential costs of an accident or other damage during this time to protect your investment. Also, the insurance company will backdate any new charges to the time of your new purchase, so waiting doesn't save you any money.

Review your old policy

Check your old car insurance policy to see which coverages you currently have. Keep in mind that if you financed your vehicle, your lender will require you to purchase full coverage, including comprehensive and collision.

“If you own an older vehicle which just has liability, only the liability will transfer to the new vehicle. You will need to add full coverage to that new vehicle as soon as possible in order to be properly covered,” McKenzie says.

Your rate will change based on the new car and your current rating factors. Premiums may increase if:

The new car is more expensive to repair or replace
The car has a high theft risk
You need comprehensive and collision coverage
You have recent tickets or claims
Your address has changed, and you now live in a higher-risk area
You are adding new drivers to the policy

“If you had dropped down to liability coverage only on your old car, expect to pay a good $500-$1,000 more per year on your insurance,” says Christopher J. Marquette, a Grover Hermann Professor of Business at Millikin University.

This is an excellent time to shop around for the best deal and ask about discounts.

You may be able to bundle your home and auto together for savings if you haven’t already. Or, you can use a reliable online auto insurance rate comparison tool and buy policies online.

If you’re taking out a loan, find out what’s required

If you’re taking out a loan, the financing company will require comprehensive and collision coverage. Your new vehicle is collateral for the loan, so most lenders require full coverage insurance. The same goes for leased cars.

The financing company, dealership, or credit union will tell you what coverage you need before you drive the car off the lot.

Your insurance company will also need details about the car and the loan, including:

Vehicle identification number (VIN)
Make, model, and year
Safety features
Garaging address
Lienholder or lessor information
Names of regular drivers
Special use, such as rideshare or delivery driving

“Other important facets are knowing the VIN, the names of all family members who may be regular drivers, and any special driving circumstances you have, such as using your vehicle for ridesharing,” says Marquette.

You'll also need to provide the lender's information to your insurance company so it can be listed on your policy.

Understand your coverage options

When you buy a new car, it’s a good time to review all of your coverage, not just transfer the old policy. State minimum liability coverage does not cover damage to your car. Consider comprehensive, collision, rental reimbursement, roadside assistance, gap insurance, and higher liability limits when choosing coverage.

Be sure to consider the out-of-pocket costs of an accident or other damage without comprehensive and collision coverage. What seems like savings now can end up costing you much more in the event of an accident.

Some policies provide a rental if your car is in the shop, and some have roadside assistance options. You can investigate these features if you’re already reviewing your coverage.

Types of coverage refresher:

Minimum coverage (different in each state): Liability for bodily injury and property damage to another party
Comprehensive: Weather-related damage, vandalism, theft, glass damage, hitting a deer
Collision: Repairs or replacement of vehicle after a collision with another car or object
Other insurance required in a handful of states: PIP, MedPay, uninsured motorist coverage

What if this is my first car purchase?

If this is your first car and the title is in your name, you need to be named on the car insurance policy. If you still live with your parents, you can stay on a family policy, as long as you are listed as the primary driver of the car. If you no longer live at home, you need your own policy. Having been on your parent or guardian’s policy can help you save.

“If you’ve been on an insurance policy for at least six months, switching to a policy all on your own will be a little cheaper since you will have a continuous insurance discount applied to the new policy,” McKenzie says.

You can contact the same insurer that handles your family’s plan or spend a little extra time in the dealership's finance department – they often have an insurance agent who can help you right then and there. You will need all the same basic info.

Can I transfer insurance on a weekend or holiday?

Yes, you can transfer insurance on a weekend or holiday through your insurer’s website, app or 24-hour customer service line. Insurance companies extend coverage to newly purchased cars automatically in most cases; it’s a good idea to verify if you plan to buy at a time when the company is closed, and you aren’t able to make changes online.You'll just need the VIN of the new vehicle and any lender information to add to the updated coverage.

FAQ: Transferring insurance to a new car

Can I drive a new car home before adding it to my insurance?

Yes, as long as you have an active policy, most carriers extend coverage to newly purchased vehicles. Verify your coverage and how long you have to report the purchase to your insurer before you buy.

Does my old car stay insured after I transfer coverage?

No. If you transfer the coverage to a new vehicle, the old one is no longer insured. If you need to keep coverage on the old vehicle, add the newly purchased vehicle as a new vehicle rather than transferring the coverage.

Do I need insurance before buying a car from a dealer?

Yes. Dealers and lenders usually require proof of insurance before you can drive the car off the lot.

Will my new car have the same coverage as my old car?

Yes, if you transfer the policy directly to the new car, it will have the same coverage. If you are adding it as a new car and not replacing one, you will need to select the coverage you want for the new vehicle.