After your old car served you well for many years, you have finally made the decision to buy a new one. Whether your family is growing or simply your lifestyle needs have changed, there could be many reasons why you have made the leap and got a different vehicle.
However, in between all this excitement, you shouldn’t forget one crucial thing which comes with car ownership and that is car insurance. In most countries in the world, you are required by law to have auto insurance, or otherwise, you will be facing penalties and fines.
So when you buy a new car, you will definitely need to insure it before hitting the road. The good news is that you don’t have to purchase a new insurance policy. Instead, you can transfer your existing one to your new vehicle.
This process of switching insurance to another car is very convenient and can be easily completed in just a few steps.
Keep reading to learn how to transfer your current car insurance plan to your new vehicle.
Get in touch with your car insurance provider:
Obviously, the first step you need to take when transferring your existing policy to your new vehicle is to get in touch with your insurance provider. It is advised that you do this even before your purchase is complete so that the transfer can be done before you acquire a new vehicle.
The major reason why it is important to call your insurance company or broker is to inform them that you have bought a new vehicle and you want to give them your new card details. They will then recalculate your premium and give you an offer with an updated quote as well as let you know whether you are eligible for any discounts or savings opportunities.
Compare quotes from different insurance companies:
Depending on the type of car you purchase, there is a great chance that your rate may increase if your new vehicle is worth more than your old one. To make an accurate quote, your insurer will consider several factors including your car make, model and year, and safety features.
However, in order to get the best rate, it is crucial that you first shop around and compare quotes from multiple insurance companies before choosing the updated one your current insurer gives you. This may further help you save a lot of money on your premium, especially if you raise your deductible. For instance, according to research, you can save between 7% and 28% on your premium if you increase your deductible.
Reassess your coverage needs:
Another thing you should do when transferring your insurance to your new car is to reassess your coverage needs. Doing so can provide you with plenty of benefits including saving on your premium and reevaluating whether your current coverage limits are suitable for your new vehicle.
For example, if your new car has a higher value than your old one, then you may need to increase your coverage limits and purchase additional coverage to get better financial protection. Many people choose to add collision and comprehensive insurance to cover all repair costs if their car is damaged in an accident.
Another type of coverage you can consider adding to your new auto insurance policy is accident forgiveness coverage which is suitable for new and high-risk drivers to prevent the insurer from raising your rate after your first accident.
Ask about additional costs:
When you are transferring the insurance to your new car, it is imperative that you ask about any additional costs that may come along. The thing is there are some insurance companies that charge a fee if you decide to cancel your existing policy before it expires and purchase a new one for your new car.
The fee can vary between providers so make sure you do your research before taking any further steps.
On the other hand, there are insurance companies that may either waive or reduce the fee if you choose to transfer your insurance online. In any case, it is crucial that you read the terms and conditions of your existing car insurance policy so you will know what to expect.
When you buy a new car, you are required by law to get it insured in order to drive it. Luckily, you have the option of transferring your existing policy to your new vehicle and still reap all the benefits your insurance plan offers.
If you need help switching your insurance to another car, refer to our post and follow the steps to ensure a smooth and successful transfer.