We all at some point will like to change or upgrade from an old car, this is why you need to know how to switch car insurance to new car.
If you are buying either a new car or a used car, you should know the basics. To switch car insurance to a new car, some insurance charges extra premiums to do this, that is why you have to call your insurer to get a quote first.
Some car premium may be best to cancel and get a fresh start. But all this are what you should bear in mind because it may be worth it to cancel and get a new quote or new insurance policy.
Buying a new car is a good thing, but for new or younger drivers, getting a new premium may cost you so much.
With the registration number in hand, call your insurance company and find out what it will cost you. Many people have to fall the victim of going ahead to buy a new ride then later realize they have made the worst mistake after they have exchange cash.
There will be questions asked, so it is important you know everything about the car before calling your insurer.
The engine size of the car.
The year of the car.
Any modification to the car.
For used cars, if it has been written off or an accident car.
Some Insurance company will charge an admin fee for switching and some will not, but be sure that your insurance company will always want to get the better part of the deal. If the cost your policy should increase and you pay in installments, the insurance company will spread the cost to the remainder of your policy.
If at any point you find it a lot more costly to switch to a new car, you can cancel your existing policy, even though such move can cost you some administration or cancellation fee.
When canceling your existing policy, you should bear some facts in mind:
Early cancellation fees.
Early cancellation will mean losing you the already build up no claim bonus (say if you cancel in 8 months).
There is a 14-days cool off period which you can cancel a new insurance policy and not be charged any fee.
Gap insurance is when you buy a new car, then write it off after about 10-months, your insurance provider may choose to pay you the current value of the car which will usually be lower than the actual price you bought the car.
With Gap insurance, you are able to make up for the value of what you bought the car for and what your insurance company chooses to pay. This then allows you to replace the written off car with another car with the same value as when you bought the car.
You might want this gap insurance if your car is bought on loan or finance.
Many people will answer all the questions asked when switching new car, it is important you know How To Switch Car Insurance To New Car, just listening to the terms and conditions on phone assuming that’s all is not enough.
And when it comes to signing new policy documents, don’t assume all that was said on the phone is same as what is written of the contract.
This is not the case. When you get your new insurance policy documents either by email or post, find time to sit down and go through all those tiny letters containing the terms and conditions.
Most times there are many terms and conditions which were not read out to you on the phone, and if you assume otherwise and sign it, if anything happens to the car that is when you will realize that you are in more problem than you can imagine.
Many people today have fallen victims to this clause, as either the excess have magically increased or your cancellation options changed. I have personal experience with Complete Cover Group Insurance, even their quote is more expensive, they are one insurance you cannot trust whatever they say.
Hopefully, you should by now know more about how to switch car insurance to new car, it is up to you to ask more questions from your insurer, never let any suspicion you have go unanswered.
Can I use my bonus NCB on two cars?