How Can I Replace a Car on My Car Insurance Policy?

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transferring insurance from one car to another

Congrats on the new set of wheels!  Along with picking out the perfect name for your new ride and enjoying that new car smell, there are some practical matters to take care of—like updating your car insurance details. 

At Lemonade car insurance, we’re here to help you navigate this process for a more seamless experience.

Read on to learn more about transferring insurance from your old car to the new one, including practical steps.

Here’s what we’ll discuss:

How can I transfer insurance to my new car?

When you buy a new car, the first step is usually to contact your insurance provider to kick off the transfer process. 

As cars come and go from your life, Lemonade Car makes it easy to update the details on the Lemonade app. 

To replace a car on your policy, head over to the Car tab on the app and select your policy. Then scroll down to the ‘Cars’ section. Here you’ll see a list of your covered vehicles, followed by an option that reads ‘+Add or Replace a car’.

Once you’ve selected ‘+Add or Replace a car,’ our trusty chatbot Maya will help you navigate the rest of the process. You’ll have the option to remove a car that’s already covered by your policy and replace it with another car, or to simply add a new vehicle.

Once you complete these simple steps on our app, we’ll send you an updated copy of your policy as well as an updated insurance ID card (which you can access digitally, or print out and store in your glove box).

Keep in mind: You can cover up to four cars on a single Lemonade Car policy, but any car that you intend to include on your policy needs to be registered under your or your spouse’s name.

What information about my new car does my auto insurance company need?

When you buy a new car, be prepared to share specific details about the car with your insurer, including:

  • Make
  • Model
  • Year
  • VIN (Vehicle Identification Number), which is usually written on the inside of your driver’s side door in the door jamb.
  • Body type or trim—like a sedan, hatchback, or crossover

You might also need to share where your car will be garaged, any advanced safety features your car has, how often it will be driven, and who the primary drivers will be.

How much does it cost to transfer insurance to my new car?

Lemonade won’t charge you a fee to transfer insurance from one car to another, but replacing cars on your policy can impact your policy price. 

How much you pay for car insurance is based on several factors—like the age, make, and model of your car, your driving record, and the coverages you include on your policy. 

So if you’re swapping out your 2005 Toyota Corolla that’s racked up 157,000 miles for a lightly used 2022 Honda Civic, expect your insurance rates to change. 

When you replace a car on your policy using the Lemonade app, you’ll be able to see how these changes affect your pricing. 

When should I transfer insurance from my old car to my new one?

It’s crucial to transfer your car insurance coverage right away, even before you drive your new car off the dealership lot, to ensure you have the required proof of insurance. Dealerships might not let you leave without the proper coverage—especially if you’re leasing or financing the car.

And don’t forget: Once you replace a car on your policy, the car that you replaced won’t be eligible for coverage in the case of any future claims or losses. And if you still own the car, or if it’s still registered in your name, without insurance coverage you could face financial and legal repercussions.

How much insurance coverage do I need for my new car?

To answer that question (and to start building your policy) you’ll likely want to include more than the legal minimum requirements—which vary by state. 

It’s true: Adding more coverage to your policy usually means higher insurance costs, but it could also save you a lot of time, money, and aggravation in the long run.

Learn more about what the different coverage options cover here.

  • Consider the deductible you’re comfortable with and the maximum payout limit in case of property damage or injury. 
  • Your coverage limits should be high enough to protect your assets if you’re at fault in an accident. If you’re unsure, consult with an insurance expert or your insurance agency.
  • If you’re leasing or financing your new car, your lender may also have specific insurance requirements that go beyond the minimum liability coverage, like comprehensive and collision coverages.

The good news is that Lemonade Car coverage is super customizable—both when you build your quote, and at any time during your policy term—all on the Lemonade app. 

Before you go…

Making sure your new ride has the right coverage gives you peace of mind as you get behind the wheel, knowing you’re protected from the road ahead. Lemonade Car helps make the process of transferring insurance from one car to another less daunting, and maybe even a little bit fun.

Ready to build your free quote? Click below to get started.

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A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.


Please note: Lemonade articles and other editorial content are meant for educational purposes only, and should not be relied upon instead of professional legal, insurance or financial advice. The content of these educational articles does not alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. While we regularly review previously published content to ensure it is accurate and up-to-date, there may be instances in which legal conditions or policy details have changed since publication. Any hypothetical examples used in Lemonade editorial content are purely expositional. Hypothetical examples do not alter or bind Lemonade to any application of your insurance policy to the particular facts and circumstances of any actual claim.