How to Switch Insurance From Car to Car

by Pam Murphy

When you change cars, transferring your insurance from one vehicle to the other should be a priority. Depending on your auto insurance company, the process could be as simple as calling your agent. If you know in advance that you plan to change cars, it's a good idea to call your agent to verify the company's policies ahead of time. Even though swapping insurance from one car to another should prove a fairly simple process, you need to be aware of your company's procedures so that you don't risk a loss of coverage during the switch.

Evaluate your coverage limits to determine if you need to change your deductible or policy limits. recommends that you determine which coverage is required and from there decide "what you have that needs to be protected" beyond the minimum. At the very least, consider your liability, comprehensive and collision coverage limits to ensure that you have adequate coverage.

Notify your insurance company as soon as possible after you change vehicles. Neglecting to promptly inform your agent of your car change could result in an unpaid claim if you were to have an accident in the meantime. If possible, call your agent before driving the new car. Now is the time to inform your agent of any changes you want to make in deductibles or coverage limits.

Provide your insurance company with the details of your new car. Typically, your agent will need to know the Vehicle Identification Number (VIN) of the car, the make and model, and the purchase price, if applicable. Most auto insurance companies will transfer your coverage from your former vehicle to your new car over the phone.

Ask your insurance agent about the billing process for your coverage change. If there is a difference in rates, your company may send you a short bill for the difference to cover the period between your car change and your next regular billing statement.

Request an updated insurance card from your agent. Some states require drivers to keep proof of insurance in the vehicle. When you change cars, you'll need a record of insurance that lists the correct vehicle under coverage.

Check your short bill or next auto insurance statement for accuracy. Make sure your deductible and coverage limits are correct, and address any discrepancies immediately.


About the Author

Pam Murphy is a writer specializing in fitness, childcare and business-related topics. She is a member of the National Association for Family Child Care and contributes to various websites. Murphy is a licensed childcare professional and holds a Bachelor of Arts in English from the University of West Georgia.

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