Are you planning to purchase a new car? Or want to gift or sell your existing car to someone? You might be wondering whether or not you can transfer your vehicle insurance to the new purchase. Of course, it is possible to switch car insurance to a new vehicle. However, you need to follow the necessary norms and inform your insurer. If you are interested in switching your car insurance in Alberta, talk to the experts at Surex for adequate guidance.
Legally, it is not possible to transfer your car insurance unless you have signed the vehicle title over to someone else. In case you are purchasing a second car, you can also transfer the insurance. When you transfer the vehicle registration, the former owner’s policy would not be valid any longer.
Inform Your Insurer While Replacing Your Old Car
Your insurer should be informed about the change in ownership of the car as soon as you purchase a new one. The new vehicle might bring about specific changes in the terms and conditions of the insurance. Besides, it would have an impact on the rates of insurance. At times, you can also benefit from lower premiums.
As a car owner, you should be aware that most insurers provide 14 to 15 days of grace period. This is enough to sort out all the legalities related to registration and ownership. This implies that you would have some breathing time after purchasing a new car to get it insured. It is recommended to inform your insurer about the change in the vehicle as soon as possible. Here are certain aspects that might have an impact on your policy.
- Change of address
- Change of vehicle
- Change in relationship or marriage (associated with secondary drivers)
You also need to inform your insurance company whether or not you would like to go for joint car ownership. This might alter the risks related to the policy, and correspondingly, the rates. It largely depends on the driving record of the other person.
How Can You Benefit By Informing Your Insurer?
Failure to inform your insurer about the change in ownership of the car exposes you to the risk of not being compensated after an incident. For instance, if your car is involved in an accident 20 days after purchasing the vehicle, the insurer might not grant the claim. The reason is, you had not informed them within 15 days of making the purchase. Therefore, you need to switch the car insurance within the stipulated time frame.
The reputed insurers calculate car premiums based on several factors. This includes the model, year of manufacture, and make of the vehicle. Some of the other aspects that the insurers consider include:
- The average cost of repair
- The vehicle’s claim history
- Horsepower
- Theft rates
- Safety ratings
Therefore, you should switch the car insurance in your own interest once you get a new one. With some vehicles, you might also have to shell out lower premiums.
Is It Possible To Transfer Insurance From Your Old Car To The New One?
Most insurers allow car owners to transfer their policies from their existing vehicles to new ones. To switch insurance policies, you simply need to call the insurer and furnish the necessary details. They would ask for your policy number, vehicle registration number, and other relevant details. Depending on the model you are purchasing, you might experience a change in premium. For instance, luxury cars and sports vehicles attract higher premiums.
Apart from the change in premium, you might also have to shell out an administration fee. This would enable the insurer to make the necessary changes in the policy. Generally, this should not cost you more than $50.
Can You Switch Your Car Insurance In The Middle Of A Year?
Being a car owner, you might be worried about switching the insurance in the middle of a year. Fortunately, most insurers allow their clients to make this transfer any time during the year. You should inform them as soon as you plan to purchase a new vehicle. Remember, your old car insurance policy would not cover the new vehicle automatically, even if you have several months of coverage left. Failure to inform your insurer implies that you would be driving without coverage, which would legally put you on the back foot.
How To Switch Your Car Insurance To A New Vehicle?
All you need to do is call the insurance company and furnish all the details they ask for. Now, you might want to discontinue your previous insurer and get a new policy. It would be wise to reach out to an insurance specialist and weigh all the options in these situations. You must also compare quotes to find a better deal.
In such cases, you may have to fork out a small cancellation fee. Besides, you may be eligible for a refund for the cover that is unused. Before canceling, check out your policy documents, as you might be eligible for a partial refund from certain insurers. However, you would be losing your no-claim bonus when you get a new policy.
In case you find a cheaper insurance option, you can get the cancellation costs compensated.
Get Your New Car Insured Before Driving It Home
Remember, you should have an insurance cover in place as soon as you hit the road. Most car owners purchase temporary vehicle insurance when they purchase the car from the showroom and drive it home. Meanwhile, you can get the old policy switched and get your vehicle fully covered.
Endnote
In case you are planning to own more than one car simultaneously, each of these vehicles must have insurance. However, you can simply walk out of the existing one if you plan to let go of the old car. Once you have a word with the insurance specialists, you can compare the most viable deals. This explains why car owners consult professionals to save money while switching car insurance policies to new vehicles.
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