Can I Swap Car Insurance When I Buy a New Car?

If you want to buy a new car in the near future, you should start planning now for how you want to insure it. Don't wait until the last minute to finally make a decision on an insurer. Early planning is particularly important if you currently have an auto insurance plan for your old vehicle and want to change over to a new company for your new car.

The Process

The first step of swapping your insurance to a new car is to identify the type of car you plan to buy. You need this information to get an accurate quote from the new insurer. Once you get a quote (do so before you visit the dealership) and settle on a new insurer for the type of car you wish to buy, visit the dealership to purchase the car. At the dealership, you can then call the insurer to secure the new insurance policy. Once it's confirmed that you now have insurance with the new provider (make sure you get written confirmation via fax or email), you can then call the old insurer at any time after that to cancel the old policy.


If your current policy is up for renewal soon, this is an ideal time to swap your car insurance. You pay your final payment with the old company and start making payments with the new one without having to worry about the insurer charging or refunding prorated fees. Your current company sends you a notice about 30 days before the policy is auto-renewed. You can then take those 30 days to find a new company and contact your old insurer to inform the company that you do not wish to renew before the auto-renew date.


If you've been with your current insurer for multiple years, talk to a representative there before you make the final decision to swap insurers. If you're leaving because your policy is too expensive, the representative may offer you a better rate. If the new insurer offers extras, negotiate with the representative at your current insurance provider to see if he can match that offer. It will help reduce any headaches you may experience from having to switch over to a whole new company.

Ensure the New Coverage is Active

The main issue you have to concern yourself with when swapping car insurance policies is accidentally allowing your old policy to lapse. If wires get crossed and your new insurer doesn't start your effective date to either coincide or start before the old policy expires, you could experience issues with your state Department of Motor Vehicles office and possibly experience delays registering the new vehicle. Take every precaution to ensure that your new policy is active before the old one expires.

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