How do I transfer insurance from one car to another without paying for two cars at once?

Is there a way around paying for two cars when you need to replace a vehicle? I am trading my old car in for a new Toyota on Saturday, but I don’t want to pay for both at once! How can I make sure I don't get stuck paying for extra insurance time on the old car?

Answer
Yes, there is a way to be appropriately covered on both vehicles without having to pay a penny for double coverage. The key is to know the exact date you will be doing the trade-in. Luckily, you already do!
You will want to schedule replacing your old car on your insurance policy with your new one on the exact date of the trade-in. That way, you’ll be covered to drive your old car to the dealership and drive the new car home. The insurance on your older car will automatically stop at midnight, so you won’t pay for any days you don’t have to!
To save yourself time and stress, get everything done ahead of time. Here is what you will need to make the update to your policy:
  • Effective date
  • VIN of new car
  • Name and address of loan or leasing company if applicable
  • Required liability and physical damage coverages
  • Dealerships fax and/or email address
Once you have everything entered, your provider can send a copy of the ID card and the binder to both you and the dealership, so you will be all set to go!
Getting this step out of the way early also means you have time to shop for a cheaper insurance policy if you aren’t happy with the new rate.
If you are looking for a cheaper rate, Jerry can help! Jerry shops prices with over 50 different insurance companies and delivers personalized quotes straight to your phone in seconds. And once you choose a new plan, we’ll even help you switch! If you have any questions, you can text an agent, and they will text right back with assistance.
Best of luck, and enjoy your new ride!
Shannon Martin
Answered on Oct 21, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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