Transfer Car Insurance to a New Car: A How-to Guide

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Updated: March 28, 2025

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Key Takeaways

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You don't have to open a new car insurance policy when buying a new car. You can transfer your existing coverage from your previous vehicle to the new one.

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Transferring your insurance to a new car is a great chance to reassess your coverage. You might consider adding comprehensive, collision or gap insurance, or increasing your coverage limits.

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Insurers typically offer a seven to 30-day grace period to inform them of your purchase and update your policy.

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How to Transfer Car Insurance to a New Car

Transferring insurance to a new car is simple. Call your insurer or update your policy online, providing details like the VIN, make, model and year. Since premiums depend on your vehicle's value and type, you'll need a new quote. Take this opportunity to reevaluate your coverage — if your new car is more valuable, consider increasing your limits to avoid out-of-pocket repair costs.

  1. 1

    Contact your insurer

    A quick phone call is all it takes to notify your insurer about your new car. Contact them before finalizing the purchase to ensure the transfer is complete before you take ownership. In some states, you need proof of insurance to register your car.

  2. 2

    Reassess your coverage needs

    While transferring your policy, take the chance to see if any changes can benefit your new car. For example, check if your coverage limits suit the new vehicle.

    If your new car is worth more than your old one, you may need higher coverage limits. Adding collision and comprehensive insurance can help cover repair costs if your car is damaged.

    If you're financing the car, many lenders require comprehensive insurance.

    Also, consider gap insurance, which covers the difference between your car’s market value and what you owe if it gets totaled.

  3. 3

    Get an updated quote

    If your new car is worth more than your old one, your rates might increase. To provide an accurate quote, your insurer will need the following details:

    • Vehicle Identification Number (VIN)
    • Safety features
    • Make and model
    • Model year

    Also, inform your insurer if anyone in your household will drive the car. Many companies require all household members to be listed as insured drivers.

  4. 4

    Ask about additional costs

    If your rates increase, ask your insurer how it will bill you for the difference. Some insurers allow you to spread the cost across monthly payments, while others may require payment upfront.

    Some companies charge an administrative fee for processing insurance transfers to new vehicles. These fees vary between providers.

  5. 5

    Compare quotes from other insurers

    Besides getting an updated quote from your current insurer, gather and compare quotes from other providers to ensure you get the best deal.

    Whether you choose to stay with your current insurer or switch to a new one, now is the time to finalize the process. Make sure you get documentation for your new or updated policy to confirm coverage for your new vehicle and any other changes.

    If you're switching car insurance companies, you can use online calculators to get an estimate.

  6. 6

    Make sure your policy is updated and active

    Ensure your insurance is active and updated before driving off with your new car. Get a written note from your insurer about your car's coverage, especially after changes.

    Some people insure two cars at once to avoid driving uninsured. If you're using your old car and buying a new one, insure the new car before removing your old vehicle.

Insurance Requirements for New Cars

The coverage you need depends on whether you own, finance or lease your car:

  • If you own the car outright and aren't financing it, you can cover it with your state-required coverage.
  • If you're financing your vehicle, your lender will likely require full coverage insurance. If your current policy includes only liability, update it to include collision and comprehensive insurance to avoid violating your lease agreement.
  • If you're leasing a car, you must get your own coverage. Some leaseholders may require gap insurance.

The table below shows the most appropriate insurance type for each situation.

Required Coverage
Minimum Coverage
Comprehensive
Collision

Financed vehicle

✓

✓

✓

Leased vehicle

✓

✓

✓

Owned vehicle

✓

Car insurance laws vary by state, and minimum requirements differ depending on where you live. Most states require only minimum coverage — your insurance won't cover repair costs if your vehicle is damaged.

Consider increasing your coverage limits, especially if you’ve purchased a high-value vehicle. A full coverage policy with comprehensive and collision insurance may be a better choice if you want to avoid large out-of-pocket expenses.

How Much Does It Cost to Transfer Insurance Car Insurance?

The average annual cost of insurance is $1,424 for a full coverage policy with 100/300/100 liability limits. Your premium will likely increase if your new vehicle is worth more than your old one. If your coverage changes, you may either pay the difference upfront or spread it across future payments. Your actual rate may vary based on factors like your car's make, model and year. Increasing your coverage limits can also raise your premium.

Your insurer may charge an administrative fee for transferring car insurance. Request a quote before finalizing your new vehicle purchase so you know what to expect for rates and coverage. You can shop around without having to open a new policy.

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If you find your premiums too expensive after getting an updated quote, you can always shop around for other policies.

Average Cost of Transferring Car Insurance

When estimating the cost of transferring car insurance, several factors play a role, including your car's make and model, coverage level, your location's risk level and any additional fees. The table below lets you adjust for your car's make, model, age and desired coverage to get an estimate.

Make Model
Annual Premium

Acura MDX

$1,244

Acura MDX

$634

Acura MDX

$1,252

Acura MDX

$629

Acura MDX

$1,235

Acura MDX

$598

Acura MDX

$1,270

Acura MDX

$620

Compare Car Insurance Quotes

Car insurance companies consider several factors when calculating premiums. Comparing rates helps you find the best policy for your needs. MoneyGeek's calculator provides personalized quotes from multiple providers based on basic information, giving you an accurate estimate of your car insurance costs.

Car Insurance Calculator

MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.

$192
High
$139
Average
$87
Low

Rates updated:

Apr 02, 2025

Insurance Carrier
MoneyGeek Score
Average Monthly
Payment
1
Capital Insurance Group

Capital Insurance Group

94
/of 100
$87
2
GEICO

GEICO

82
/of 100
$109
3
State Farm

State Farm

83
/of 100
$118
4
Travelers

Travelers

83
/of 100
$129
5
Progressive

Progressive

79
/of 100
$133
6
Farmers

Farmers

77
/of 100
$151
1
Capital Insurance Group

Capital Insurance Group

MoneyGeek Score
94
/of 100
Average Monthly Payment$87/mo
2
GEICO

GEICO

MoneyGeek Score
82
/of 100
Average Monthly Payment$109/mo
3
State Farm

State Farm

MoneyGeek Score
83
/of 100
Average Monthly Payment$118/mo
4
Travelers

Travelers

MoneyGeek Score
83
/of 100
Average Monthly Payment$129/mo
5
Progressive

Progressive

MoneyGeek Score
79
/of 100
Average Monthly Payment$133/mo
6
Farmers

Farmers

MoneyGeek Score
77
/of 100
Average Monthly Payment$151/mo
Your Next Step:

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How Long Do You Have to Transfer Insurance to a New Car?

It's best to add your new car to your policy right away, but some insurers offer a grace period, giving you extra time to complete the process. A grace period is the time after your due date that you can pay your premium before your coverage lapses. When you buy a new car, it refers to how long you have to inform your insurer and update your policy.

Grace periods vary by insurer but typically last seven to 30 days. You can drive your new car during this time, even if you haven’t added it to your policy yet. However, after the grace period, driving without updating your policy or purchasing a new one may leave you driving an uninsured vehicle. Ask your insurer about the length of your grace period.

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Reevaluate how much car insurance you need when transferring your insurance from your old car to your new one. This is a great opportunity to decide if you should adjust your policy.

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Transfer Auto Insurance to a New Car: Bottom Line

Transferring insurance to a new car is simple and ensures continuous coverage. This guide helps you understand the steps, requirements and how to update your policy when switching vehicles.

Transferring Insurance to a New Vehicle: FAQ

You can transfer insurance from one car to another when you buy a new vehicle. Here are the most common questions about how this process works.

Is it possible to transfer car insurance to a new car?

How much will it cost to transfer insurance to a new car?

How long is the grace period for getting car insurance for a new car?

What happens if I don’t transfer my car insurance?

Do I have to insure all my cars with the same company?

Cost of Transferring Insurance to a New Car: Our Review Methodology

Overview

MoneyGeek consulted reputable sources to provide you with the most up-to-date processes and information. We gathered data from leaders in insurance, finance and economics, along with information from government, academic and research organizations. Our auto insurance guides also include data from industry leaders like AM Best, J.D. Power and the National Association of Insurance Commissioners (NAIC).

Editorial Team

MoneyGeek's editorial team consists of professional writers and editors with years of experience in personal finance and insurance. We've consulted over 700 experts from top institutions for their input on our financial resources and products.

Editorial Process

MoneyGeek follows a rigorous editorial process to ensure our guides offer fact-checked, unbiased and current information. Our team analyzes data from peer-reviewed studies, research and articles to create informative financial content. Our writers then supplement their findings with additional research. Afterward, professional editors review the content for accuracy and clarity, offering insights before conducting a final quality assurance check to meet company standards.

Insurance for a New Car: Related Articles

About Mark Fitzpatrick

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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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