If you’ve bought a new car or replaced your old one for any reason, you’ll need to tell your car insurance provider straight away to ensure you’re covered.

Key takeaways:

• Tell your insurance provider as soon as you change cars to avoid a gap in cover
  
  
• Have your new car’s make, model, and registration number ready
  
  
• Updating your policy could change the cost of your premium

When do I need to arrange cover for my new car?

The timing for arranging car insurance depends on how and where you’re buying your vehicle.

• If you’re buying a used or second-hand car, you’ll usually need insurance in place from the moment you take ownership, especially if you plan to drive it away on the same day. Driving without insurance can result in legal penalties, so it’s important to make sure you’re covered before getting behind the wheel.
  
  
  
• If you’re buying a brand-new car from a dealership, they may include temporary insurance as part of the purchase. This can give you time to compare insurance quotes and find the right policy before committing to longer-term cover.

Can you transfer your car insurance to another car?

In most cases, car insurance policies can be updated to cover a new vehicle. If you’re changing cars, many providers allow you to transfer your existing policy to the new car, although this depends on the insurer’s terms and conditions.

The process is usually quick and simple, and your insurance policy will usually continue until the original end date. However, there could be an admin fee for making the change, and switching to a different car may affect the cost of your premium.

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 the new vehicle rather than needing to take out an entirely new policy, but this can depend on your insurer.

It’s important to let your insurer know as soon as you change cars, as continuing to drive without updating your details could leave you without valid cover. Each provider has different rules, so it’s always best to check your policy or speak directly with your insurer before making any changes.

Is there a charge for updating my car insurance with a new car?

There is often an administration fee when updating your car insurance to reflect a change of vehicle, but the exact cost can vary depending on the provider and your policy. You’ll usually find details of any charges in the terms and conditions of your insurance documents.

In addition to an admin fee, your premium may also change depending on the make, model, and insurance group of your new car. For example, if you’re switching to a more powerful or higher-value vehicle, your premium could go up.

It’s also important to keep your insurer informed of any other changes to your details, such as your address or driving history (e.g. penalty points) at the time they happen, not just at renewal. Keeping your policy up to date helps ensure your cover remains valid if you need to make a claim.

Will the cost of my insurance change when buying a new car?

It’s possible. When you buy a new car, your insurance premium may change, as the cost of cover is influenced by many factors, including the type of car you’re insuring.

Switching to a more expensive vehicle, or one with a larger engine or higher insurance group, could result in a higher premium. On the other hand, choosing a car with a smaller engine or lower insurance group might reduce your costs. If the new car is similar to your previous one, your premium may stay about the same.

Whether the price goes up or down, the change could affect how much you pay for the remainder of your policy. Some providers may adjust your monthly payments, while others might apply the change as a one-off cost or refund.

To understand how your new car will impact your premium, it’s best to check the terms of your existing policy or contact your insurance provider directly.

How to change your car on your insurance policy?

Updating your car insurance policy with a new vehicle is usually a straightforward process, but it can vary depending on your provider.

• Contact your insurer: Most providers will require you to get in touch with them. This can often be done by phone, or in some cases, through their website or app. Some insurers have dedicated online forms or support pages for updating your car details.
  
  
• Provide details of the new car: You'll typically need to share key information such as the make, model, registration number, and whether it has any modifications. You may also be asked where you bought the car (e.g. dealership, private seller, or garage).
  
  
• Review and confirm any other updates: Insurers may also check if other details need updating, like your annual mileage, address, or where the car will be kept overnight.
  
  

Once your information is updated, your provider will usually confirm the new premium amount and any fees, if applicable.

What information will I need to change my car insurance?

When updating your car insurance to cover a new vehicle, most providers will ask for some basic details about the car you’re switching to. This may include:

• Vehicle registration number
  
  
• Make, model, and year
  
  
• Engine size and fuel type
  
  
• Any modifications
  
  
• Expected collection/delivery date
  
  
  

Requirements can vary by provider, so it’s a good idea to have as much information ready as possible when updating your policy or comparing quotes.

Do I have to stay with my current insurer?

No, not necessarily. In the UK, most standard car insurance policies can be cancelled at any time, even if you’re in the middle of your policy term. So, if you’re buying a different car, you may choose to stay with your current insurer or explore other options.

If you’ve paid for your policy in full as one annual payment, then you might be eligible for a partial refund for the unused months. However, cancellation fees often apply and can vary by provider. You may also be charged an administration fee.

Before making a decision, you may want to:

1. Ask your insurer how switching your new car onto your policy would affect your premium
   
   
2. Check what fees may apply and whether any refund is due if you cancel your policy
   
   
3. Compare quotes for a new policy to see if switching providers offers better value
   
   
   

Once you have this information, you can weigh up which option might work best for you.

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What do I do if my premium increases?

If your car insurance premium goes up, your insurer will usually update your payments to reflect the new cost.

• If you pay monthly, your instalments may increase.
  
  
• If you paid upfront, you might be asked to make an additional payment to cover the difference.
  
  
• If you're concerned about affordability, it might help to speak with your insurance provider. They may be able to explain your options or offer alternative ways to manage the updated cost.
  
  
  

If your premium has increased significantly, it may be worth comparing quotes from other providers to see if switching could offer better value. You’ll also need to check whether there are any cancellation fees or admin charges you’ll need to pay on your current policy.

Looking to switch or compare your options? Through Asda Money, you can compare quotes from over 60 trusted UK insurers and find a policy that suits your needs at a price you’re happy with.

The car insurance comparison service is provided by Vast Visibility Limited.

What happens if I don’t insure my new car?

Driving a car without valid insurance is illegal in the UK. Whether you need to start a new policy or update your existing one, it’s important to have the correct cover in place before you drive your new vehicle.

If you’re caught driving uninsured, you could be held personally responsible for any damage, theft, or injury costs arising from an accident. There could also be legal consequences, such as:

• Penalty points on your driving licence
  
  
• Fines starting at £300 (which can increase)
  
  
• Possible driving disqualification
  
  
• Potential seizure of your vehicle by the authorities
  
  

For your protection and to comply with the law, it’s important to make sure your new car is insured before you take it on the road.