How to change your car insurance policy

It means making an official update to your insurer that alters your current cover, such as changing your vehicle, address, or usage, which may affect your premium or terms.

This isn’t always about cancelling your policy. Most insurers allow mid-term adjustments, which let you update key details without ending your contract early. Common examples include switching to a different car, moving to a new home, or adding a named driver. These changes can be made during the policy, but they often come with an administration fee and may alter how much you pay.

For instance, if you move from a quiet rural village to a busy city centre, your premium may go up due to the higher risk of theft or accidents. If you downgrade your car to a lower insurance group, you might see a drop in cost. Adding a young or inexperienced driver will usually increase your premium, even if they rarely use the vehicle.

Some changes are so significant that insurers may recommend cancelling the policy and taking out a new one. If your circumstances have shifted enough to put you in a different risk category, starting fresh can be simpler and sometimes cheaper, especially if you shop around.

Not updating your policy when something important changes can lead to serious consequences. If the insurer finds out your details were inaccurate at the time of a claim, they could refuse to pay out. In some cases, the entire policy could be invalidated.

You may need to change your policy if something in your life affects how, where, or by whom your car is used. These changes can impact risk, pricing, or eligibility, and must be reported to your insurer.

Insurers build your premium around specific assumptions. If those assumptions no longer apply, the policy needs updating. Even something as simple as changing your commute can alter the risk profile your insurer uses to price your cover.

In most cases, the reasons fall into a handful of clear categories:

• You’ve bought a new car: Whether it’s a modest downgrade or a performance upgrade, the vehicle’s insurance group, value, safety rating, and repair cost will all affect your premium.
• You’ve changed address: A move from a quiet suburb to a high-theft urban postcode can raise premiums. The opposite is also true if you now have secure parking or live in a low-claim area.
• You’ve added a driver: A young, newly qualified, or high-risk named driver will likely increase your costs. However, adding a more experienced driver could reduce your premium in some cases.
• You’ve changed how the car is used: Driving for work, using the car to make deliveries, or increasing your annual mileage must be declared. Insurers need to know if usage shifts from social to business.
• You’ve made modifications: Alloy wheels, tinted windows, engine remaps, or suspension changes—even if cosmetic—can all affect your cover and price.

Some changes improve your risk profile and reduce your costs. Others may make you more expensive to insure. Either way, it’s about accuracy. If your insurer finds out your policy no longer reflects reality, they may refuse to pay out, even if the oversight was unintentional.

A policy is only valid if the information it’s based on is accurate. Keeping it up to date protects both your car and your legal position.

Any change to your policy can affect your premium, excess, or level of cover. Some updates increase your risk profile, while others reduce it, and insurers adjust pricing accordingly.

Insurers reassess risk whenever a policy is amended. A simple change like adding a second driver can trigger a higher premium. Moving to a lower-crime postcode might reduce it. What matters is how the new information affects the likelihood of a claim and the potential cost if one arises.

Some typical changes and their effects:

• Switching to a more powerful or expensive car often means a jump in cost. Insurers factor in repair expenses, speed, theft rates, and accident data.
• Adding a young driver increases perceived risk, especially if they’re under 25 or newly licensed.
• Changing your job title can subtly affect pricing. For instance, a “courier” might pay more than a “delivery assistant” even if the duties are similar.
• Reducing your mileage may save money, particularly if you move from commuting to social-only use.
• Upgrading security features—like installing a dashcam, immobiliser, or tracker—can help lower your premium, especially in urban areas.

It’s not just about the cost. Your excess, coverage limits, and eligibility for add-ons may change too. Switching vehicles, for example, might void any existing breakdown cover if the new car falls outside the qualifying criteria. Some changes may also remove optional benefits unless re-added manually.

A policy adjustment is a re-evaluation of risk. That means price is just one part of what changes. Always review your full policy schedule after any update—not just the cost.

To avoid mistakes, always notify your insurer before making a change, double-check that your policy reflects your current situation, and don’t assume you’re covered until you’ve had confirmation in writing.

Even small oversights can lead to major problems. Many drivers assume they’re automatically covered when buying a new car or moving house, but until your insurer confirms the change, that assumption can cost you.

Here are some of the most common mistakes and how to avoid them:

• Driving a new car without updating your insurer: You’re not automatically insured just because you swapped your vehicle. Unless the insurer has added the new car to your policy, you’re not covered—even if you haven’t cancelled the old one yet.
• Delaying updates after a move: If your address changes, inform your insurer immediately. A delay can invalidate the policy if you need to make a claim, even if it seems like a minor detail.
• Accepting a revised premium without comparison: Insurers can bump your premium after a mid-term change. If the increase feels steep, check whether a new policy with another provider is cheaper. You may save more, even after cancellation fees.
• Assuming cover includes extras: Some changes can quietly remove add-ons like breakdown cover, windscreen protection, or courtesy car entitlement. Read the new schedule carefully.
• Not checking documents after the change: Always request written confirmation and review it. Verbal assurances from a call handler won’t help if the policy document hasn’t been updated properly.

If you’re switching to another insurer, be especially careful with timing. Ensure the new policy starts before the old one ends, even if just by an hour. Gaps in cover are taken seriously by both insurers and the police.

A quick call, double-check, or quote comparison can be the difference between a smooth policy change and a costly mistake. Treat it like a contract update—because that’s exactly what it is.

In most cases, you don’t need to notify the DVLA or Motor Insurance Database (MID) directly—your insurer will do this automatically when you change or update your policy.

When you take out or amend a car insurance policy, your insurer is legally required to update the MID within seven days. This database is used by police and automatic number plate recognition (ANPR) systems to check whether a vehicle is insured. If you’ve recently made a change, it can take a few days to show up on askMID.com, which is the public-facing version of the database.

If the police stop you and your vehicle isn’t yet visible on the system, having your insurance documents to hand can help avoid problems.

That said, there are situations where you do need to contact the DVLA directly:

• You’ve changed your name or address: This must be updated on your driving licence and vehicle logbook (V5C).
• You’ve sold your car: The DVLA must be notified so you’re no longer registered as the keeper.
• You’ve declared your vehicle off the road (SORN): If you’re not using or insuring the car, you must apply for a Statutory Off Road Notification.

It’s also worth noting that insurers rely on your vehicle’s DVLA data. If something’s wrong with your V5C or hasn’t been updated, it can cause mismatches in your insurance documents.

The general rule is simple: insurers update the MID, you update the DVLA. But both need accurate, up-to-date information to keep you properly covered and road legal.