Buying a new car is an exciting prospect, but many drivers become less enthusiastic when they consider new car insurance to go along with this sort of purchase. Often, drivers are worried that their premiums will increase or their coverage might change. Unfortunately, it’s all part of driving, and it’s certainly illegal to drive without car insurance. As soon as possible after buying a car, transferring car insurance is the next process to undertake.

Transferring car insurance is easiest if you simply contact your car insurance company and explain the situation. They can cancel the insurance on your old plan once information about the new car has been received. Many times they will require you to fax or e-mail certain documents to them to make sure you receive the proper rates. Typically they will also credit your account to make premiums carry over. For example, if you recently paid for a month of insurance and are transferring car insurance on the second day, you’ll get credit for the rest of the month. The car insurance agent will do this after setting up the new policy for the new car, to ensure that there is no amount of time you drive uninsured. You’ll get a temporary proof of insurance card while the insurance company gets everything in order.

Realize that your premiums are likely to change when transferring car insurance. This may mean that they go up or down rather drastically. Insurance companies have different ratings for different types of cars, and these ratings correspond to the relative risk of the vehicles. For instance, if you’re buying a fast new sports car, your insurance premiums will likely go up. If you’re downgrading from a sports car to a minivan, your rates will go down. Though it seems like a pretty easy concept to understand, it’s important to plan ahead for these changes. Realize that you might owe money immediately for your new car insurance premiums if you’re going to be driving a riskier vehicle. Talking to your insurance representative can help you know about any immediate amounts due. If you are going to owe money on your new car insurance policy, you can lower the amount by raising your coverage deductibles.

Regardless of the type of car or car insurance you’ve got, the most important thing to remember when transferring car insurance is to get it done quickly. State and federal law prohibit driving without auto insurance, and new cars are not automatically insured. Transferring your policy quickly saves you money via the premium credit. It’s a safe process and lets you get out on the road in your new car as quickly as possible.