How Do I Transfer Auto Insurance to a New Car?

Insure your car before you drive it off the lot.

Insure your car before you drive it off the lot.

No matter what type of car you drive, it is important to maintain proper insurance coverage. When you buy a new car, the first thing you need to do is notify your insurance company so that they can make the appropriate changes to your policy. While your current insurance policy will cover your new car temporarily, that coverage only goes so far. It is imperative that you contact your insurance company and insure your new car right away.

Contact your insurance company when you start shopping for a new car. Call the insurance company once you have narrowed down your choice of models to a handful. Get estimates of how much it will cost to insure each of those vehicles. The cost of insurance can vary widely from model to model, and those insurance costs could tip your decision toward one car or another.

Pull your insurance card out of your wallet or glove box and call the toll-free number listed on the back. Ask to speak to an insurance representative, and let that representative know you need to make a change to your policy. Your current car insurance policy temporarily covers the new car, but the coverage is transferred exactly as it exists. If you have liability-only coverage on your 10-year-old car, that is the coverage you will have on your new car until you contact the insurer and make the necessary changes.

Tell the representative which car you are taking off your policy. If you traded in your old car, you no longer need to carry it on your insurance. Verify the type of coverage you had on the old car. You might need to change the amount of coverage to fully insure your new-car purchase.

Give the insurance representative the vehicle identification number (VIN) of the new car you are buying. The VIN is written on your pink slip, which is the receipt you get when you buy the new car. The VIN is also recorded on the vehicle title. Each car has its own unique VIN, which identifies the vehicle in a large database.

Tell the representative about any safety devices the new car has. You might be entitled to a discount for things like anti-lock brakes, side airbags, anti-theft devices and passenger restraint devices.

Institute full coverage on your new car. If you had an old car, you might have waived comprehensive and collision coverage, but you should not do that with a new car. The value of the new car is high enough that this full coverage makes sense.

Items you will need

  • Insurance card
  • VIN number

About the Author

Based in Pennsylvania, Bonnie Conrad has been working as a professional freelance writer since 2003. Her work can be seen on Credit Factor, Constant Content and a number of other websites. Conrad also works full-time as a computer technician and loves to write about a number of technician topics. She studied computer technology and business administration at Harrisburg Area Community College.

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