Contacting your insurer for a new policy is a vital step when you purchase a new or "new to you" car. Your policy options, cost and coverage are likely to change.
Even if you live at the same address, keep the same coverage options and drive the same number of miles each day, getting a new car will require updates to your auto insurance policy.
How do I transfer my insurance?
The good news is that most insurance companies make it easy to transfer your insurance to a different car. All major carriers provide options to make changes either online or over the phone if you prefer to speak with an agent.
If your insurance company has a local office, you can update your policy in person. You may want to discuss bundling your car insurance with another type of insurance like homeowners or life insurance for additional savings opportunities.
Steps to switch insurance:
- Contact your current carrier for rates on your new vehicle.
- Comparison shop with competitors to get the best rate.
- Activate your brand new or updated policy with your preferred carrier.
- Confirm the cancellation of your old policy.
If you switch insurance companies, remember that you can't simply stop making payments to cancel your old policy. Be sure to contact your old company to confirm the policy cancellation and the exact date of termination. Don't risk getting a collection letter in the mail for the old policy you thought had ended.
How much does it cost to transfer my insurance?
The majority of auto insurance companies don’t charge a fee to transfer your insurance or cancel your policy. If you switch providers, your old provider will typically refund you any portion of your unused policy.
However, some insurers may require you to pay set-up fees when the policy is created. An insurer may also charge a fee for cancelling a policy before it expires.
Be sure to check with your current insurance company about any extra fees to switch or cancel your policy. You'll want to compare the new costs with the amount of money you may save by switching.
Can I switch car insurance providers?
You can switch to a new car insurance provider anytime, for any reason. Whether you have just bought a new car or you're driving the same reliable ride you've had for a decade, or whether you want to transfer insurance to different car or make a change on a current vehicle.
Car insurance isn't the same as health insurance where insurers often put limits on when and how you can change your policy or select a new provider.
Do I need to call my insurance company before I drive off the car lot?
Many dealerships offer temporary car insurance for your new vehicle that may last anywhere from a few days to a few weeks. This coverage means you don't need to make a phone call to your insurance company before driving your car home.
However, if you have an appointment to pick up your vehicle, you may request the vehicle identification number (VIN) from your dealership so you can switch car insurance to a new carrier or policy ahead of time.
Does a new engine require a new insurance policy?
Vehicle enthusiasts who install powerful motors in their cars, as well as drivers who experience engine failure and require work on their vehicle, may need to contact their vehicle insurance company for an update.
Some insurance companies don't allow any vehicle modifications for cars on their policies, which may necessitate a move to a new insurance carrier for another policy. Your insurance carrier might not take issue if you replace the stock motor in your car with another stock motor.
However, an upgraded engine or other significant modification may entirely invalidate your policy.
Here's how most insurance companies tend to treat modified cars:
- They allow certain modifications, but not all modifications.
- They require modified-car insurance for modified cars.
- They don't allow any modifications of any kind.
Don't risk getting into an accident with your modified car and learning that your policy is no longer valid. Contact your company in advance to figure out whether you need to switch car insurance to a new company or modify your current policy.
New car, new policy, new savings
There are several reasons to switch your car insurance. Though, most drivers tend to shop for new insurance when they're presented with a rate increase.
Smart consumers also inspect their car insurance policies regularly to make sure the coverage amounts and details are correct.
Buying a new car, moving to a new address, or experiencing a significant life change is a great time to visit your insurance company's website.
Comparing auto insurance on Squeeze can help you find the lowest rates on auto insurance for your new ride.