Will my insurance go up if I switch cars?
Asked by: Ms. Maiya Cormier Jr. | Last update: July 24, 2025Score: 4.5/5 (10 votes)
Does changing cars increase insurance?
How much is insurance for a new car? Usually, getting a new car will increase your rate because it'll be worth more than your old car.
What happens to insurance when you switch cars?
Most auto insurance policies have a built-in grace period that lets you drive your new car off the lot with the same level of coverage you had on your previous vehicle. Typical policy grace periods are between 1 week to 30-days1. After that, you'll need to add your new car to your policy to be covered.
Does it cost to transfer insurance to another car?
Transferring your auto insurance isn't necessarily fun, but it's just as important. And timing is critical. The transfer itself doesn't cost any extra money, but having a new loan or lease on the vehicle may require an increase in coverage, depending on what you already have.
Do you have to tell insurance if you change wheels?
Wheel Modifications
Making modifications to car wheels can significantly alter the handling of your car, whilst wheel upgrades will increase its value. Therefore, if your car has been fitted with alloy wheels or wider wheels or tyres, you need to declare this to your insurance company.
Cheaper Car Insurance Hacks
Do car modifications affect insurance?
If you modify your vehicle to improve its performance or enhance its appearance, you'll typically need a coverage endorsement or a separate, custom car insurance policy. The reason is simple: modified cars usually feature expensive parts and often require special attention at the shop.
Will my insurance cover a different car?
Insurance in California follows the vehicle, not the driver. This means you will be covered by the same insurance that covers the car if you drive a friend's car in California.
Do I need to cancel my car insurance before switching?
Car owners may switch providers if they're moving, buying a new car, or want to pay less for their policy. When switching car insurance, cancel your old policy on the day your new policy starts to avoid a coverage gap.
How do I switch from one car insurance to another?
When changing car insurance companies, it's typically your responsibility to cancel coverage with your previous insurer. Your new insurance company can provide proof of insurance to your old company if necessary, but they generally aren't authorized to cancel a policy with another insurer on your behalf.
Does switching car insurance cost money?
Switching car insurance companies can save you hundreds of dollars a year, and it won't cost you anything to shop around for cheaper rates.
Do I get a refund if I switch car insurance?
Switching insurance companies
If you switch car insurance companies and find better rates with a different insurer, you may want to cancel your existing policy before it expires. In this case, if you switch insurance companies you can get a refund. Depending on your insurer, you may have to pay a cancellation fee.
Is it better to switch car insurance after an accident?
While you can switch insurers after a recent accident, you should evaluate if it will cost more in the long term. Ask your current insurer if they can match the new insurance company's rate before you switch. Before you switch carriers, make sure you settle all the open claims with your old insurer.
How long do you have to change your car insurance when you move?
If you're moving in state, you'll want to tell your car insurance company as soon as possible about your new address. If you move to another state, you may only have 30 to 90 days to change your car insurance, and update your driver's license and vehicle registration.
Is it cheaper to insure a new or old car?
New cars normally have a higher market value compared to used cars, which often results in higher insurance costs. Insurers must account for the potential payout in case of a total loss, making it more expensive to insure a higher-valued vehicle.
How much does insurance increase with another car?
Insuring a second vehicle can increase your premium by an average of $1,185 per year, according to Policygenius, but the cost can vary significantly based on several factors.
Does credit score affect car insurance?
How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.
Is there a penalty for switching insurance?
If at any time and for any reason you want to make a switch to another insurer mid-policy, you typically have the right to cancel your policy. Even if you just started your coverage or have a pending claim, you should be able to cancel your current policy with no penalties.
When should I cancel my old car insurance?
When the sale of your vehicle is complete, you can contact your insurance company and cancel your policy. If you're buying a new vehicle, you can add it to your current policy instead of canceling it.
Is it easy to transfer insurance to another car?
Drivers who buy a new vehicle should have no problem transferring insurance from one car to another, but they should be prepared for their car insurance rates to go up, especially if they've just bought or leased a brand new car.
Can I cancel my car insurance if I'm not using my car?
Depending on your state's rules and insurer, you may be able to pause your car insurance if you won't be driving for an extended period. If putting a pause on your car insurance isn't possible, you can reduce your coverages or cancel your policy for the time you don't need it.
Does State Farm charge a cancellation fee?
State Farm's cancellation policy
State Farm doesn't charge a cancellation fee; you can cancel your coverage anytime. You can also receive a prorated refund if you have prepaid your insurance premiums.
Is it OK to switch car insurance often?
Is it bad to change car insurance companies too often? There's no legal penalty for switching car insurance companies too often, as long as you avoid coverage gaps, but you may miss out on some cost benefits if you change too often. Most insurance companies review your insurance history when you request a quote.
Can my son drive my car if he is not insured?
Most insurers cover someone else driving the policyholder's car with their permission once in a while. But, if you're going to start driving one of your parent's cars regularly, you'll need to be added or named on their auto insurance. You can't legally drive your parents' car without any insurance at all, either.
Can I drive my boyfriend's car if I'm not on his insurance?
While there are exceptions, car insurance generally follows the car and not the driver. Allowing another licensed driver to borrow your vehicle is known as "permissive use," which means you give someone, who isn't listed on your car insurance policy, permission to operate your vehicle.
What happens if I don't add my teenager to my car insurance?
Failing to add your teenager to your auto insurance can lead to coverage denial, legal penalties and policy cancellation. Lack of driving experience and perceived higher risk contribute to higher car premiums for teen drivers.