How to get a good deal on car insurance after switching to a different car.
Getting a new-to-you car could change your rates, depending on its value, engine power, repair costs or coverage needs. That’s because your vehicle is one of the main factors in determining your insurance premium.
How does car insurance change after switching cars?
After switching out a previous car with another one, your rates should update to reflect the change. Since that rate differs by insurer, consider whether updating your current policy or getting a new one is best for you.
- Updating your current policy. This option is the most convenient and helps you get your next car on the road as soon as possible. Often, updating cars is as simple as calling an insurer or filling out an online form.
- Switching to a new company. Shopping for a different provider ensures you’re getting the best coverage and lowest premium for your new-to-you vehicle.
Compare car insurance rates after changing cars
Compare car loans for new and used cars
How much does changing cars affect car insurance rates?
Along with your driving record and credit score, insurance companies also look at the vehicle you drive as a main insurance factor. Ways your vehicle influences your premium include:
- Price tag. Trading in your Oldsmobile for a shiny new roadster? The higher car value means it’ll cost more to replace if you encounter a total loss.
- Engine power. Engines bursting with power raise the likelihood that you’ll drive at higher speeds. Expect higher insurance for fast cars.
- Vehicle size. Your SUV, dualie or other bulky ride could cause more damage during an accident, and insurers will charge extra for that risk.
- Theft rates. You might find comprehensive coverage pricier than expected if you own a car that’s known for high theft rates.
- Convertible. These soft tops mean less driver and passenger protection in a collision and higher theft rates.
- Repair costs. Cars that require more babying with imported parts or specialist mechanics also require a higher premium. Cars that are less expensive to repair after an accident get cheaper rates.
- Coverage needs. The level of coverage you have affects how much you pay, including your chosen limits, deductibles and add-ons. A new Lexus requires higher coverage maximums than a used Toyota. And if you got a car loan, expect to add gap coverage to your insurance.
Cheapest vs most expensive cars to insure
Compare the most and least expensive car models to insure of the top 350 most popular car models.
Cheapest models to insure
|Make & model||Monthly insurance rate|
|Volkswagen Golf R||$145|
Most expensive models to insure
|Make & model||Monthly insurance rate||Ferrari 812||$1,188|
|Ferrari F12 Berlinetta||$1,015|
|Ferrari 488 Spider||$868|
|Mercedes Maybach S650||$814|
|Bentley Flying Spur||$738|
|Aston Martin DB11||$652|
How to get cheap car insurance after changing cars
No matter which car you choose to swap out with your old one, you can save on car insurance.
- Check out several providers. Rates differ among insurers anytime you make a change.
- Bundle policies. Gather all your insurance needs and cover them in one place.
- Look for safety discounts. Your new-to-you car could have extra safety features that qualify for different discounts from your old car.
- Buy a less expensive car. If you’re thinking about changing cars, look for cars that are less expensive to insure. Generally, those are sedans, minivans, hybrids and compact cars.
- Get less coverage. You could do without nonessential coverage if your budget is a bit tight, such as dropping medical payments if you have solid health insurance or roadside assistance if you only commute close to home.
How do I update my car insurance after switching cars?
Updating your insurance to reflect your new-to-you car is simple:
- Determine your new car’s coverage needs.
- Call your insurer or use your online account to enter details about the car.
- Delete information about your old car and agree to the new rate.
- If applicable, compare providers who offer the coverage you need and start a new policy.
- Cancel any unneeded policies or coverage.
What should I watch out for with car insurance for a different car?
In all the excitement of your new car, keep in mind:
- Shop around. Looking at new providers when switching cars isn’t common. But it could save you hundreds or thousands per year, especially if the car is newer, more expensive or more powerful.
- Adequate coverage. A new car may call for wider coverage, such as new car replacement, gap insurance or a higher collision limit.
- Meet deadlines. Many insurers have a grace period to report your new car purchase, but this varies by company. Typically you have at least a few days.
- Loan or lease requirements. If you’re getting a loan or lease, you may need extra coverage you didn’t have before, including collision and comprehensive. You may also have to show proof of insurance before driving off the lot.
- Canceling your old policy. When switching insurers along with your new car, you might owe an early cancellation fee. Check your policy before canceling so you know this information up front.
Getting a different car could increase your insurance rates, especially if it’s more expensive, bigger or more powerful. Consider several providers to get the best value for your new ride.