How do I switch insurance policies between two cars?

It doesn't have to be hard to switch car insurance from one car to another. Just call the provider of your choice with the coverage needed and your vehicle's information.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 15, 2020

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Here's what you need to know...

  • Decide how much coverage you need on the new vehicle
  • If you’re staying with the same insurance company, just let them know of your new purchase and you should be able to easily transfer coverage
  • If you’re switching insurers, make sure your new policy is in place before canceling your old one

If you are wondering how to switch insurance policies between two cars, the process doesn’t have to be daunting. Just approach it in a logical manner, and you may find that putting coverage in place on the new vehicle is quite simple.

Here are the simplest steps to take to achieve your goal. Then use the free tool above to start comparing free quotes for car insurance!

What Coverage Is Required?


The first step is to consider the level of coverage you need on the new vehicle. If it’s a new one and you will be arranging financing, the lender may require you to carry a certain level, and type, of coverage on it until the loan is paid off.

The lender wants to make sure that its investment is protected if an accident occurs, so be prepared to have to buy collision and comprehensive coverage for your new car.

In many states, a car must have at least some bodily injury liability insurance on it. This type of coverage is put in place to protect the occupants of the other vehicle in case of an accident. It pays for the other vehicle’s and occupants’:

  • Medical bills
  • Funeral expenses
  • Car repairs

Car owners need to keep in mind that they always have the option of buying more than the legal minimum amount required since they would be personally responsible for any costs over the amount of their policy limit.

Buying a new vehicle and considering what type of insurance is needed is a good time to think about whether you are currently getting the best deal for your coverage.

Since you are going to be switching your coverage to a new vehicle, you may also want to consider whether you should be switching insurance companies, too. Shopping around is the key to getting the best combination of a good level of coverage and affordable rates.

You may also want to consider changing your deductible, since increasing it can save you money on your premium rates.

Just make sure that the level you choose is one that you feel comfortable with since you will be paying this amount out of pocket before the insurance company pays out anything toward a claim.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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Contact Insurance Company

Whether you decide to switch companies or not, you will need to contact your present insurer. If you are going to stay with the same insurance company, getting your coverage transferred to the new vehicle is a relatively simple matter.

You will need to let the insurance company or your agent know the make and model of the vehicle, as well as the Vehicle Identification Number (VIN) to get coverage in place.

It’s a good idea to let your present insurer that you are buying another vehicle as early in the process as possible so that you can arrange the coverage you need quickly.

You may not have to pay more for coverage if you are only switching to a different type of vehicle but keeping your level of insurance protection at the same level.

Be sure to ask the insurer about any discounts you may be entitled to when you are arranging for coverage on the new vehicle. If there is a difference in premium rates, you may need to make your first payment at the new level for the car to be covered.

Ask the insurance company or your agent to confirm when the first payment is due on your new car policy.

Once you have insurance in place on the new car, be sure that you have canceled the policy covering the older one. You should notify the insurance company in writing that you are canceling the existing policy and the date this change is taking effect.

To make sure that the insurer gets the information and processes it so that you don’t have to continue paying on a policy you don’t want to keep in effect, you may want to send the letter by registered mail or have a courier company deliver it.

It’s a good idea to contact the insurance company after your letter has been delivered to make sure that the policy is canceled and that you won’t be charged for any further premiums.

You are not required to give a reason to the insurer since a customer has the right to cancel a policy at any time.

Compare Rates


The process of switching policies between two cars doesn’t have to be a complicated one. If you decide to stay with the same insurer, just call the company and let them know what you are doing so that your new car can be covered.

On the other hand, if you are considering switching companies as well, you can start looking for the best coverage by clicking on the free insurance quote tool on this page. Why not compare rates and make sure you are getting the best deal now? Click here to get started!

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