Most insurance companies allow you to transfer your existing insurance policy when you buy a new car. While the premium amount and insurance terms may need to be adjusted, you’ll continue to enjoy the same benefits as you did with your old car.
If you already spent a lot of time and effort comparing different insurance policies from various companies before you originally selected one for your current car, you may not want to go through it all over again when you buy a new car. And if you are a responsible driver who hasn’t been involved in any accidents, you wouldn’t want to let go of the benefits that you may be eligible for, such as a no-claims bonus.
Fortunately, changing your car insurance over to another car is simple. You just need to contact your insurance provider, and they can process the switch for you. You may need to contact the insurer and complete the documentation within a limited time of buying the new car, such as 10 to 15 days.
If your new car has a higher value than your old car, you may need to pay a higher premium when you transfer your insurance. But if you buy a lower-value car, you could potentially get a partial refund on your insurance.
Since Compulsory Third Party (CTP) insurance is linked to the vehicle and not to its owner, this type of insurance will get transferred automatically to a new owner when a car is sold. All a seller needs to do is inform the relevant authorities of the sale.
However, comprehensive car insurance is a different story. Comprehensive policy premiums depend on a lot of variables, most of which are connected to the driver, such as age, number of claims, and even where the car is parked. This means that most insurance companies won’t let you transfer your curzrent comprehensive car insurance policy to another person when you sell your car.
Transferring car insurance interstate can be slightly more complicated as it also involves transferring registration, which may be handled differently from state to state. For example, if you’re moving to NSW, you need to purchase a new CTP insurance policy (also known as a green slip) from a NSW insurance provider before you can transfer your registration.
If you have additional insurance, such as a comprehensive cover, you will also need to inform your insurer of your address change. If they do not offer services in the state that you are moving to, you may need to change your insurance provider. You may find that it’s most convenient to choose the same company that you got your green slip from, though it’s worth comparing alternative options as well.
Although the process of transferring insurance online may vary from one insurance provider to the next, it’s typically relatively straightforward. You simply need to visit your insurer’s website, log into your account, and follow the instructions provided.
This only applies when transferring insurance from your old vehicle to your new one; not from one person to another.
Some companies offer rental car cover as an add-on to comprehensive insurance policies, but this is an additional benefit and not a transfer of insurance. If this feature is not included in your policy, you will need to purchase rental insurance separately.
This article was reviewed by Alex Ritchie before it was published as part of RateCity's Fact Check process.
