The insurer will normally ask for the new registration and vehicle details, recalculate the price, and tell you whether there is anything extra to pay or a refund due. Some insurers also charge an administration fee for a mid-term change. Changing cars part-way through a policy is common.
Then you will need to arrange insurance elsewhere before driving it. Ask your existing insurer what happens if you cancel the old policy part-way through the year, including any cancellation charge and whether any unused premium will be refunded.
Can you transfer your existing policy to the new car?
Many insurers allow a mid-term change of vehicle. You keep the same policy and renewal date, but the insured vehicle is replaced with the one you have just bought. Most of the time, yes.
That does not mean the insurer has to cover every replacement car. A much more powerful vehicle, an unusual import, a heavily modified car or a vehicle used differently from your old one may fall outside the insurer's normal acceptance rules.
The insurer should tell you whether it can cover the new car and what the revised premium and terms will be. Do not rely on the fact that you still have an active insurance policy: until the new vehicle is accepted and the change takes effect, that policy may still relate only to the old car.
When should you tell the insurer?
Ideally, ask the insurer before you collect the replacement car. If you already know the registration number, make, model and collection date, you can usually arrange the change in advance and have it start at the agreed handover time.
This is especially important if you are part-exchanging your old car at a dealer. There can be a point during the handover when you cease to own the old car and become responsible for the new one. You want the insurance change to match that as closely as possible.
Some insurers have their own arrangements for the changeover day, so ask exactly when cover on the old vehicle ends and when cover on the new one begins.
Will the price of your insurance change?
The premium was calculated partly on the car you originally insured. Replacing it means the insurer has to price the new risk. Quite possibly.
factors that can affect the revised price include the new car's value, insurance group, performance, repair costs, theft risk, age and specification. Changes in how you will use or keep the car can matter too.
The result could be an extra premium, a reduction, or little change at all. There may also be an administration charge depending on the insurer and how the amendment is made.
What information will you normally need?
Have the new car's registration number ready if possible. You may also be asked for details such as:
- make, model and version;
- year of manufacture;
- engine or power details;
- estimated annual mileage;
- where the car will normally be kept overnight;
- how you intend to use it;
- any modifications or non-standard equipment;
- the date you want cover on the new vehicle to begin.
If anything else is changing at the same time — perhaps your address, occupation, named drivers or expected mileage — tell the insurer rather than changing only the registration number.
What if your insurer will not cover the replacement car?
It is worth comparing the insurer's price for changing the existing policy with the cost of a new policy elsewhere. Do not compare only the headline premium: cancellation charges, amendment fees, excesses and the level of cover can all affect the real cost.
What happens to your no-claims discount?
If you simply change the vehicle on the existing policy, the policy itself normally continues, so you are not starting a new insurance year from day one. Your no-claims position will continue to depend on the policy and any claims made during it.
If instead you cancel and arrange completely new insurance elsewhere, ask both insurers how your current no-claims record will be handled. Do not assume that a partly completed insurance year will count as a full extra year.
What about the car you trade in?
Tell the insurer that you no longer need cover on the old vehicle once the changeover has taken place. Check the timing of the insurance amendment reflects the actual handover if you are handing it to a dealer.
Also remember the non-insurance paperwork. When you sell or trade in a vehicle, you need to notify DVLA that you are no longer its keeper. That is separate from telling your insurer.
Before you collect the new car
- Give the insurer the new vehicle details.
- Ask whether the new car is acceptable under your existing policy.
- Confirm any extra premium, refund or administration fee.
- Agree the exact date and time the insurance change takes effect.
- Check the updated policy documents show the correct registration.
- Do not drive the new car until you know cover is in force.
Trading in a car mid-policy is usually straightforward, but the insurance does not simply follow you from one vehicle to another by itself. Arrange the change before handover and get confirmation that the replacement car is covered.
