Can I transfer car insurance to another person?

Every insurance company handles transfers differently. However, you generally cannot transfer an insurance policy from one person to another.

If you want to transfer insurance to a new car, the process is fairly simple. As long as you have the proper documentation, you should have no trouble with the transfer. Thankfully, auto insurance companies make it easy to make policy changes.

Regardless of your plan, you should ensure you have coverage for any vehicle you own. If you get a new car, you can take a few simple steps to keep consistent coverage. Most states have strict policies on a lapse in insurance, and you don’t want to face repercussions for an avoidable mistake.

How do I transfer car insurance to another person?

The only way to transfer car insurance from one person to another is when the policy covers two spouses. In that case, if one spouse passes away, the insurance company will transfer the policy to the remaining driver.

When you buy or inherit a car and have insurance on your current vehicle, you can either purchase a new policy for the new vehicle or transfer the policy you have from the old vehicle. If you traded in your old vehicle, you can simply contact your insurance company and notify them of your intention to transfer.

Read more:

• Do you need car insurance to transfer a car title?
• How do you file a claim on someone else’s car insurance?

Can I transfer insurance temporarily?

You do have the option to transfer insurance to a new car for a short term. This is beneficial when you can’t access your vehicle and need to drive a different one for a short time. For example, maybe your car is at the mechanic’s shop for repairs, and you are borrowing a car from a friend or family member.

Some insurance companies will allow you to transfer your coverage to the vehicle you drive until yours is ready. If your policy covers a rental car while you wait for repairs, you will not need a temporary transfer.

What do you do if you purchase a used vehicle from a private seller?

Insuring a vehicle you purchased from a private seller is essentially the same process as insuring a new vehicle from a dealer. If you need a new policy, start by shopping for car insurance quotes.

If you already have insurance and want to transfer it to the vehicle you want to purchase, follow these simple steps:

• Speak to an agent at your current insurance company.
• Explain your intention to purchase the vehicle.
• Give them the necessary information, including the VIN.
• Choose the coverage you prefer, as long as you meet the state minimum.
• Designate a start date for coverage, which should be the day you make the purchase.
• Call to confirm coverage before you drive off with the car.

Most insurance companies allow you to complete this process in a matter of minutes over the phone or online.

Will the cost of insurance change after a transfer?

Car insurance rates can change after transferring insurance from one vehicle to another. When you purchase a new policy, insurance companies look at several factors to determine policy rates. Some common questions they consider include:

• What are your driving habits — do you have a history of careful or careless driving, as evidenced by your record?
• Where do you live?
• Where do you park your vehicle?
• How often do you intend to drive your car?
• What is your age and gender?
• What type of coverage do you intend to purchase?
• What are the values of your deductibles and limits?
• How many drivers do you intend to cover for your vehicle, and how many licensed drivers live in your household?

For example, your age is a major contributor to increasing or decreasing rates. Younger drivers get significantly higher rates than more experienced, older drivers.

Similarly, someone with years of a clean driving record is more likely to have lower rates. Someone with a history of speeding tickets poses a greater risk to insurance companies.

What do you need to buy car insurance?

If you’re purchasing a new car insurance policy, you’ll need some documents that any insurance company requires. These include:

• Social Security Number. You’ll need to provide your SSN, but you do not have to show your actual card.
• Driver’s license. You have to provide your driver’s license to prove you are legally allowed to operate a vehicle on the road.
• Vehicle information. They typically just need the VIN to get everything they need about the car.
• Payment information. You can usually opt for automatic withdrawal from your bank account or pay with a credit card.

You’ll also have to answer general questions about your household and if anyone else will drive the vehicle. If you have any concerns about quotes, you can search for car insurance discounts that could apply to your policy.

Read More:

• Buying Car Insurance for Your New Car
• Can I buy car insurance without a title?

What are the insurance requirements when buying a new car?

Both buying your first car and trading in your old vehicle for a new one require proof of insurance before you can drive off the lot. You may transfer insurance to a new car using the process explained earlier. However, if you only carry liability coverage, you may need to purchase additional coverage depending on how you plan to finance your new car.

For example, most lenders will require you to have a minimum of liability, comprehensive, and collision coverage. Based on the value of your new vehicle, you may want to consider GAP coverage as well.

The moment you drive your vehicle off the lot, it begins to depreciate in value. GAP insurance will cover the gap between how the insurance company values your car and how much you owe to the lender. This is particularly helpful if you get in an accident that totals your car before you are done paying it off. (For more information, read our “Can you transfer GAP insurance from one car to another?“).

Case Studies: Transferring Car Insurance

Case Study 1: Stolen Vehicle Coverage

John’s car was stolen from his driveway overnight. Luckily, he had comprehensive car insurance coverage, which protected him against theft. John promptly reported the incident to his insurance company and provided all the necessary documentation.

After an investigation, his insurance company reimbursed him for the value of his stolen vehicle, helping him recover from the financial loss.

Case Study 2: At-Fault Accident Liability

Sarah was involved in a car accident where she was deemed at fault. The other driver’s vehicle was severely damaged, and the driver sustained injuries requiring medical attention.

Sarah’s liability insurance coverage stepped in to cover the damages and medical expenses of the other party. Her insurance company handled the claim and worked with the injured party to ensure they received the necessary compensation.

Case Study 3: Natural Disaster Damage

During a severe hailstorm, Lisa’s car sustained significant damage. She had comprehensive coverage that included protection against natural disasters. Lisa filed a claim with her insurance company and provided evidence of the hail damage.

Her insurance company approved the claim and covered the cost of repairs, enabling her to restore her vehicle without incurring a substantial financial burden.

Read more: Can I purchase additional car insurance during a storm?

Case Study 4: Vandalism and Theft

Mark parked his car in a public parking lot, only to return and find it vandalized with broken windows and stolen belongings. He had comprehensive coverage, which protected him against acts of vandalism and theft.

Mark reported the incident to his insurance company and filed a claim. The insurance company assessed the damages and reimbursed Mark for the repairs and the stolen items, helping him recover from the unfortunate incident.

Case Study 5: Rental Car Coverage

Amy was traveling and decided to rent a car for convenience. She declined the rental company’s insurance coverage since her personal car insurance policy included rental car coverage. Unfortunately, Amy got into a minor accident with the rental car.

She contacted her insurance company and filed a claim. Her insurance coverage extended to the rental car, and the insurance company covered the damages, sparing Amy from incurring any out-of-pocket expenses.

Final Thoughts on Transferring Car Insurance

In general, transferring car insurance to a new car is a common practice, but insurance coverage can’t be transferred to a new driver if you sell your car. The new owner of your car will need to apply for their own insurance coverage. 

The main reason to transfer coverage is to ensure you suffer no penalties for lapsing on coverage. Take the opportunity to search for new policy quotes and learn about the discounts available based on your personal information.