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How does transferring car insurance work?

Mark Bristow avatar
Mark Bristow
- 3 min read
How does transferring car insurance work?

Most insurance companies allow you to transfer your existing insurance policy to a new car. While the premium amount and terms of the insurance may need to be adjusted, your benefits would remain intact.

How can I transfer car insurance to a new car?

If you spent a lot of time and effort comparing different insurance policies from various companies before selecting one for your current car, you may not want to go through it all over again when you buy a new car. Additionally, 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 are eligible for, such as a no-claims bonus.

Fortunately, changing your car insurance to another car is fairly easy. You just need to contact your insurance provider, and they can process this for you. You may need to contact the insurer to 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.

Can car insurance be transferred to a new owner?

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 the new owner. All a seller needs to do is inform the concerned authorities of the sale.

However, it’s a different story when it comes to comprehensive car insurance. 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. So, most insurance companies won’t let you transfer your current comprehensive car insurance policy to another person when you sell your car.

How do you transfer car insurance to another state?

Transferring car insurance interstate can be slightly complicated as it also involves transferring registration, and the procedure differs 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.

How can you transfer car insurance online?

Although the process of transferring insurance online may vary slightly from one insurance provider to the next, it is fairly uniform and straightforward overall.

You simply need to visit your insurer’s website, log in to your account and follow the instructions provided. This is only applicable to the transfer of insurance from your old vehicle to your new one, and not from one person to another.

Can I transfer my car insurance to a rental car?

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 such a feature is not included in your policy, you will need to purchase rental insurance separately.

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Product database updated 29 Mar, 2024

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.