When buying a new car, you face many decisions – and insurance is one of the most important. But what actually happens to your insurance when you switch cars? Do you have to cancel your old policy, or can you simply transfer it? In this article, we clarify the key questions surrounding the topic of “Car Insurance When Switching Cars”.
Your Existing Car Insurance When Selling a Car
If you sell your old car, your existing motor vehicle liability insurance does not automatically expire. Instead, by law, it is transferred to the buyer. However, both the seller and the buyer have the right to cancel the insurance within one month of the sale.
“Many car owners are unaware of this rule,” says insurance expert Klaus Schmidt. “Yet, you can often save significant money by changing insurance when buying a car.”
Car Insurance When Changing Vehicles
Switching Cars and New Insurance: The Options
When buying a new car, you generally have two options:
1. Transfer your existing insurance to the new car: This is the simplest option. However, you should definitely check the policy conditions. Often, the vehicle type class and regional class change, which can lead to higher premiums.
2. Take out a new policy: This is particularly worthwhile if you were not satisfied with your old insurance or if you can benefit from more favorable conditions for the new car.
What Should You Look for When Comparing Insurance?
Before deciding on an insurance policy, you should definitely compare the coverage and prices. Important criteria include:
- Coverage Limit: The motor vehicle liability insurance should have a coverage limit of at least 100 million Euros (or equivalent in your local currency/standard).
- Partial/Comprehensive Coverage: Depending on the value of the vehicle, you should take out partial or comprehensive coverage.
- Additional Services: Some insurers offer additional services, such as breakdown assistance or a discount for new drivers.
Comparing Car Insurance
Tips for Changing Insurance When Buying a Car
- Inform yourself early: Start researching suitable insurance even before you buy the car.
- Compare offers: Use an online comparison tool to compare the rates of different insurers.
- Negotiate: Don’t hesitate to negotiate the terms with the insurance company.
- Observe notice periods: Pay attention to the cancellation periods of your old and new insurance policies.
Conclusion
Switching cars provides a good opportunity to review your car insurance and potentially switch policies. By comparing offers, you can often save significant money and simultaneously benefit from better coverage. On autorepairaid.com, you can find more useful information about cars and insurance. Feel free to contact us if you have any questions or would like personal advice.
