You can easily modify your car insurance policy to include your new car. In this article, we’ll explain everything you need to know to manage this transition properly.
Is it possible to change vehicles on your car insurance policy?
Yes, it’s possible to change vehicles on your car insurance policy. However, you must comply with certain legal and contractual conditions. Your insurer (or broker) must be informed of any changes that could affect the insured risk.
Remember that civil liability remains mandatory, regardless of the vehicle you drive. This is the basic protection that covers you for damages caused to others in the event of an accident.
When should you notify your insurer or broker?
Here are the key times when you should contact your insurer to update your file:
- When purchasing a new vehicle
- When moving
- If you add a new regular user to your car
- When your vehicle’s use changes (for example, for professional use)
- Before extended travel outside the country
Note that failure to inform your insurer within the required timeframe may result in penalties. In some cases, it could even compromise your coverage in the event of a claim.
Car insurance companies greatly appreciate when their clients keep them informed of changes. This allows them to provide better service and ensure your protection remains adequate.
What’s the impact on your premium and car insurance coverage?
Adding or replacing a vehicle can indeed lead to numerous modifications to your insurance premium. Your coverage may also be adjusted according to your new vehicle’s characteristics. New value coverage and material damage coverage are examples of protections that might be modified.
Additionally, an endorsement might be necessary to cover specific risks related to your new car. Your insurance agent or broker can advise you on the best options for your situation.
⚠️ Warning: Failing to declare changes can have serious consequences. Your insurer could deny a claim or even cancel your contract if you haven’t informed them of an important change.
How do you change vehicles on your car insurance policy?
1. Inform your insurer (or your broker)
Contact your insurer or broker quickly to start the change process by phone, online, or in person depending on available options. Make sure to have all your new car’s details on hand to facilitate service.
2. Provide necessary information
Here’s the essential data needed to update your file:
- Make and model of the vehicle
- Year of manufacture
- Intended use (personal or commercial)
- Estimated annual mileage
- Modifications made to the vehicle
It’s crucial to disclose any modifications to your car to avoid problems with your policy. Be transparent about your liability and protection needs. At Gendron Insurance, we can offer insurance products best suited to your situation or even a new policy.
3. Add your new vehicle and/or remove the old one
To update your policy, you must add your new car and remove the old one if it’s a replacement. Keep in mind that you must maintain at least the mandatory civil liability coverage.
This is the ideal time to review your optional coverage like new value protection or damage protection. Adapt them to your new car, whether it’s a purchase or lease.
4. Check premium adjustments
Request a precise calculation of your new insurance premium. Check if increasing your deductible can reduce the amount payable. Before choosing a higher deductible, carefully evaluate your ability to pay this amount in case of a claim.
5. Update your registration with the SAAQ
Proceed with the official modification of your registration with the Société de l’assurance automobile du Québec (SAAQ). Driving without insurance is not only illegal but also subject to significant fines. Make sure all your papers are in order before taking to the road with your new vehicle.
(Alternative) Get a quote for your new car
Looking for a quote for your new car? An insurance broker can help you compare offers. Here’s an example comparison between two insurers:
| Criterion | Insurer A | Insurer B |
|---|---|---|
| Annual Premium | $1200 | $1100 |
| Deductible | $500 | $750 |
| Coverage | Civil liability, collision, theft | Civil liability, collision, theft, new value |
We can see that Insurer B offers a lower premium but with a higher deductible. They also offer additional protection. This is why it’s important to get multiple quotes – it allows you to choose the option that best suits your needs and budget.
Choose coverage adapted to the new vehicle
To properly protect your new car, consider these essential guarantees:
- Civil liability (mandatory in Quebec)
- Protection covering damages
- Collision coverage
- New value (for recent vehicles)
The type of vehicle also influences necessary protections. For example, an electric car might require specific guarantees for the battery. Analyze your vehicle’s nature well to select adequate coverage.
Reassess the deductible according to your needs
The deductible is the amount you pay in case of a claim before insurance covers the rest. A higher deductible generally reduces your premium, but you must be ready to pay more if an accident occurs.
For example, if you go from a $250 to $1000 deductible, your premium could decrease by 15%. However, in case of theft or an accident where you’re responsible, you’ll need to pay $1000 instead of $250.
Don’t forget to mention to your insurer if you plan to use your vehicle outside Quebec. This can affect your coverage and risks.
Save through a more suitable quote!
To get the best prices, carefully compare received offers. If you already have an ongoing policy, check cancellation penalties before changing.
A better-adapted protection offer can save you big. For example, if your situation has changed since your last policy (less mileage, secure garage), you could pay less.
By taking time to compare well, you benefit from insurance that covers your needs while reducing costs. It’s a win-win situation!
Save on car insurance for your new vehicle with Gendron Insurance!
Looking for insurance for your new car? Gendron Insurance offers customized solutions. We understand your needs and guide you through options. Fill out our car insurance form now for a personalized quote and discover how we can help you save!
Frequently asked questions about car insurance and vehicle changes
How do I transfer my insurance to a used car?
When acquiring a used vehicle, you must contact your insurer without delay. This step allows adjusting your coverage and avoiding any coverage interruption. Remember that civil liability remains mandatory, but you can add additional guarantees for material damage.
Make sure to report any changes in use or driver to comply with your contract clauses.
Can I modify my policy online without visiting?
Yes, you can generally update your contract via your insurer’s website. They must send you a notice 30 days before your contract expires, and your policy renews automatically if you don’t respond.
Know that cancellation is possible at any time in writing, but fees may apply. Be sure to quickly communicate any vehicle changes or usage to maintain valid coverage.
What are the consequences if I delay informing my insurer?
A delay in declaration can lead to contract termination, particularly during the first 60 days or if significant modifications aren’t reported.
Failing to announce a new vehicle risks policy cancellation or coverage denial in case of an incident like a collision. Your premium and civil liability protection directly depend on the accuracy of information provided to your insurer.
