Your Insurance Options when Buying a New Car

Getting a new car is always a time of excitement. Although you’ll be keen to hit the road as soon as possible, this isn’t always possible. Before setting foot on the gas, there are important requirements to consider.

The main one being you can’t legally drive a car unless you’re insured.

• The Road Traffic Act declares all cars on a public road MUST have car insurance.
• You do not need to insure your vehicle if it is kept off the road and declared as off the road (SORN). This rule is called ‘Continuous Insurance Enforcement (CIE)’.

Every car on the road needs to be insured. Under no circumstances should you drive a car without insurance – even if you’re taking one out for a test drive or picking one up after buying it.

When buying a new car, you’ll need an insurance policy to get it off the forecourt. Many car dealerships offer their own short-term insurance to get you home. While this may sound convenient, it could end up more expensive and inflexible so check the details before you commit. You wouldn’t want to pay extra for cover you don’t actually need.

If you’re buying a second-hand car or privately, you will still need to arrange your own insurance as the seller’s policy will not cover you.

There are a few different ways of sorting this:

• If you’re selling or part-exchanging your old car before buying a new one, you need to let your insurer know. They will give you the option to either amend your existing policy to cover your new car or cancel it and start with a fresh one.
• If you’re buying a new car but not replacing an old one, you could make use of drive away insurance. This type of temporary car insurance means you’ll be insured from the moment you sit behind the wheel of your new car for a short period of time.

Tempcover’s comprehensive drive away insurance begins straight away, so there’s no waiting around. Policy documents are emailed to you directly. Temporary insurance can last from one hour to 28 days, meaning you’ll have time to shop around and find the best full policy for your needs.

Can I use my old car insurance when buying a new car?

You either have to transfer your old policy over to the new vehicle or get drive away insurance while you search around for your next annual premium.

Transferring your policy may invoke an admin fee or change the price of your premium. To adjust or cancel your policy ahead of covering your new car, contact your insurer directly.

If someone else is picking up the car for you, they’ll also need their own insurance.

If you’re stopped by the police without valid insurance, you could receive the following penalties:

• A fixed fine of £300.
• Six points on your licence.
• An unlimited fine or disqualification from driving (if the case goes to court).
• The uninsured vehicle could be seized or destroyed.

Many comprehensive policies used to include a Driving Other Vehicles clause but these are no longer as common. Check your insurance documents carefully before driving your new car away.

Can I transfer my old car insurance to the new car?

Many providers will let you change insurance when buying a new car. This may invoke an admin fee or change the price of your premium depending on factors including size, make, model and value of the vehicle.

You’ll probably need to provide details of the car including make, model, year of registration, the vehicle identification number (VIN) and declare any safety feature, modifications and anti-theft devices.

Once the insurance has been transferred, you can legally drive on any public road.

What if I don’t have time to arrange a new policy?

For most people, getting a quote for temporary car insurance from Tempcover takes under 2 minutes and only requires some basic information about the driver and vehicle. This is a quick solution to help you get your car home. It gives you ample time to arrange your full insurance policy.

Once this temporary car insurance expires, you have a few options:

• Buy a full policy – Arrange your annual policy asap.
• Extend your temporary car insurance – When your drive away insurance expires, you can buy another short-term policy to keep you on the road. Please be aware some insurers may start to deny successive temporary policy requests,
• Declare your car SORN – Keep the car off the road until you’re ready to arrange the right insurance for you and head out for a drive.

Is there a grace period for car insurance when buying a new car?

The short answer is no. The UK government states: “You must have motor insurance to drive your vehicle on UK roads. Third party insurance is the legal minimum”. This means you’re covered in case you have an accident.

What if I don’t have time to arrange a new policy?

Drive away insurance helps you get your new car home quickly, safely and legally. This, in turn, gives you the chance to take your time while considering which annual insurance policy will work for you.

With every drive away car insurance policy, you get:

• Quick quotes
• Instant cover
• Comprehensive cover
• No impact on any existing no claims discount
• Flexibility

How much will my car insurance be?

The overall cost of drive away insurance and your annual policy is dependent on a number of factors, including but not limited to:

• Your occupation
• Your age
• Your driving experience
• The type of vehicle you want to insure
• Where the vehicle will be stored when not in use

Keep your insurance documents to hand as you never know when you might need them.You should also check your new car is taxed and when it last had an MOT and service.

Now the legal side is out the way, you can hit the road safe in the knowledge you’re fully covered if the worst were to happen.