What do I do about car insurance when buying a new car and trading in my old one?

Henry

New member
We are planning on buying a new car soon and trading in the old one. How does insurance work? I'd like to shop around for the cheapest deal but that isn't possible if I don't know what car we are getting yet. Also I have only just renewed my car insurance this year. Will there be a penalty if I cancel that policy?
 
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