Changing your Car Insurance Guide
Making sure that your new car is covered
If you buy a new car or have to replace your old one for any reason, you’ll need to keep your insurer in the loop about changing your motor insurance to cover your new vehicle. Although you’ll probably want to get out on the road in your new car as soon as possible, updating your car insurance needs to be a priority so that you’re still covered when driving.
Do I need to cancel my insurance policy when buying a new car?
When you buy a new car, you will likely be able to transfer your existing car insurance to a new vehicle rather than needing to take out an entirely new policy, but this can depend on your insurer.
The main thing that you’ll need to do is inform your insurer that you’ve changed your vehicle and that you’ll need to change the terms of the cover. Not doing this can invalidate your policy and cause problems with future claims if an accident were to occur
Is there a charge for updating my car insurance with a new car?
Typically yes, there will be an administration charge to amend the terms of your car insurance cover. Your insurance policy will state this within the terms and conditions section, so it’s worth checking your specific policy for details around this.
The charge to update your car insurance policy with your new car will usually be at least £25, but this can be significantly higher if you’re buying a car in a higher insurance group (either more expensive or powerful).
You also need to update your insurer straight away if there’s any change to your details, such as a change of address or you get a driving conviction, rather than waiting until you need to renew. This ensures your details are completely up-to-date and accurate in the event that you do need to make a claim.
Will the cost of my insurance change when buying a new car?
The cost of your insurance could potentially end up being higher, lower, or around the same – it all depends on what type of car you buy. One of the biggest factors which will have an impact is the value of your new car.
If your new car has a considerably higher value than your old one, then you will almost certainly see your premium increase in order to factor in the higher cost of repairs or a replacement vehicle if you were to get into an accident.
Do I need to stay with the same insurer when getting a new car?
There’s no need to stay with the same insurer if you don’t want to when you get your new car, but usually it will be the cheapest option because you only need to pay the administration fee to transfer your policy. It may still pay to shop around at this stage however as there may be alternative providers that offer a cheaper rate, based on the new vehicle regardless of the administration fee
If you were to cancel your existing to policy in order to start a new one, there will be a cost attached to the cancellation which will could potentially be more than the transfer fee.
One exception to this could be if your existing policy is about to run out anyway, in which case it might make more sense to start a new policy for your new vehicle and do a price comparison to find the best deal for your new vehicle.
When do I need to arrange cover for my new car?
When you will need to arrange cover for your new vehicle will depend on what sort of purchase you’re making.
If you’re buying a second-hand or used vehicle, you’ll want to be sure that you have cover starting the day you’re picking up the car. That way, you’ll be covered in case something happens on your way home, as sometimes used vehicles can breakdown a lot sooner than you might expect. Not having cover could also result in a fine, points on your licence and potentially even the loss of your new car.
If you’re buying a new car from a dealership, they could offer you free car insurance or breakdown cover for a certain period as an incentive. This can be helpful as it allows you to drive away your new vehicle and spend some extra time comparing car insurance quotes. It’s worth asking when you’re looking at cars from a dealership if they do offer free insurance on new cars.
Top Car Insurance FAQs:
- What's the best car insurance for you?
Finding the right car insurance for you and your wheels can be complicated because there’s so much choice out there. With Asda we do the shopping for you and help you compare quotes from some of the UK’s leading providers so you don’t have to.
All you need to do is pick the policy and price that’s right for you.
- All levels of cover for your car:
- Third Party, Fire and Theft
- Third Party Only
- Business cover
- Black Box (Telematics)
- Learner Driver policies
- And much more!
- How to get cheap car insurance quotes with Asda
Getting cheap car insurance quotes with Asda has never been simpler and you can get covered in minutes.
All you need to do is complete a number of simple questions about you, the car you’re looking to insure and your driving history.
You’ll be asked very basic questions like your name, address and date of birth, as well as questions about how long you’ve been driving and the number of no claims bonus (NCB) you have.
From there you’ll need to complete some questions about the car insurance cover you want and then we do the hard work.
- What happens when you compare car insurance with Asda?
When you compare car insurance, your details are run through the various car insurance providers on the panel.
Over 60 of the UK’s leading providers, including the likes of AXA, Hastings and Swinton, will return the cheapest quotes they have to offer.
You'll see your quotes, starting with the cheapest first, and you’ll also be able to see prices for Comprehensive, Third Party, Fire and Theft and Third Party Only policies.
At that point it’s up to you to select the quote and cover you want!
- What are your levels of car insurance cover?
When you compare quotes you’ll automatically see all three levels of cover when your quotes display but car insurance is a little more complicated than Comprehensive, Third Party, Fire and Theft or Third Party Only.
If you want a Telematics (Black Box) policy, one that covers you for work or social only, you can still compare quotes and get covered with Asda.
ASDA Money is a trading name of Asda Financial Services Ltd and Asda Stores Ltd which for general insurance are Introducer Appointed Representatives of Vast Visibility Limited, 8 Princes Parade, Liverpool, L3 1DL, authorised and regulated by the Financial Conduct Authority. Firm reference number 566973. You can check these details on the FCA Register.
The ASDA car comparison service is arranged by and administered by Vast Visibility Limited.