How To Switch Car Insurance

Key Points:

• The first step when switching your car insurance is to carefully review your current policy and compare it to other providers’ coverage options.
• You can typically end your auto insurance policy at any time before renewal, but some providers charge cancellation fees.
• It’s important to remember that cheaper auto insurance isn’t necessarily better.

If you’ve been with the same car insurance company for years, renewing your auto insurance policy may seem like a no-brainer. But if your rates have gone up, you may be wondering how to switch car insurance providers.

In this article, we’ll explain how to switch car insurance companies in a way that saves you money, avoids penalties, and matches the level of coverage you need. We’ll also recommend providers from our review of the country’s best auto insurance companies.

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Why Should I Switch Car Insurance Providers?

Cost is usually the top reason customers ditch their old car insurance policies for new ones. Your rate or deductible may have gone up, or simply may have found a better deal elsewhere. Customers also tend to jump ship when they have less-than-pleasant experiences with their current insurers while filing insurance claims.

Below are some other reasons motorists may want to know how to switch car insurance companies:

• You had a life change, like moving to a new city, and saw your monthly insurance premium spike.
• You no longer qualify for a discount previously offered.
• Your premium went up after you bought a new car.
• A company is still charging you for an old accident.
• You added a new driver and your policy price increased.

No matter why you’re considering changing your policy, learning how to switch car insurance isn’t that difficult. Read on to learn how.

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How To Switch Car Insurance (7 Steps)

If you want to cancel your current coverage before you’re forced to renew auto insurance, you can save time and money with the following steps:

1. Review Your Current Policy

Taking a hard look at your current car insurance policy will give you a good sense of what you may want from a new insurer. Your declarations page breaks down who is covered on a policy, your plan’s length, and its insurance limits. 

Liability coverage will be required on your policy, but you may want both comprehensive and collision coverage as well. Consider the offerings and prices for all your options.

2. Consider How Much You’re Willing To Pay

The next step is estimating a figure that you’re willing to pay for coverage. Think about how much insurance coverage you want and start looking into average costs across the industry.

That goes for your deductible as well. Lower deductibles usually lead to higher average car insurance rates, though you’ll pay less out of pocket for repairs if you have a lower deductible.

3. Compare Other Providers’ Car Insurance Coverage

Once you’ve identified your coverage needs, get quotes from car insurance companies. Three to five estimates should give you a sense of how much you’ll end up paying.

Have the following details on hand when getting auto insurance quotes:

• Personal information: Be ready to give your name, date of birth, and address. Many companies will also ask for your Social Security number to check your credit score.
• Vehicle information: You’ll need to provide your vehicle’s make, model, and year. Specifics like your car’s VIN, mileage, and ownership history are also expected.
• Driver information: If you have multiple people on a policy, the insurer will want to know their names, ages, addresses, and driver’s license information.
• Driving records: This means divulging traffic violations, collisions, or license revocations for anyone listed on your previous policies.

For help finding the best car insurance company when you’re looking to switch, look at Better Business Bureau (BBB) customer ratings and check out online reviews. 

Remember that your driving record, credit score, and vehicle age and model will have a sizable effect on your car insurance quotes.

4. Call Your Current Provider

If you find a better rate, see if your current insurance company will match it. Also check if you qualify for other car insurance discounts not currently applied to your account, such as a loyalty discount or options to save money when you bundle with a homeowners policy.

If the insurance company won’t budge, ask about the cancellation process to see if there are fees for leaving before your policy’s term ends. Most providers allow you to end a policy without too much hassle, so make sure to get a refund if you paid in advance.

5. Make The Change

If you’ve decided that a different insurer is your best route to cheap car insurance, buy your new policy before canceling your current coverage. That’ll help you avoid a lapse in coverage, which could lead to higher rates with new auto insurance companies.

Next, call your provider to cancel your policy. Ask for confirmation in writing that your old policy has been terminated, just in case you need proof of insurance records later on. Also, double-check that auto-payments are stopped to avoid surprise withdrawals.

6. Get Your New ID Card

Your new provider should provide you with insurance ID cards. These have information that you’ll need in the event of a wreck, like your policy number. ID cards can easily be printed out or found on many providers’ apps. All states except for New Mexico allow for digital proof of insurance.

7. Contact Your Auto Lender, If Applicable

If your car is still under a financing agreement, you should also notify your lender that you’ve switched insurance companies. You’ll likely be required to maintain at least comprehensive and collision coverage since the lender is an active investor in your vehicle.

Send proof of your new policy to the leasing company when making the change.

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What To Look For When Switching Companies

Navigating how to switch car insurance companies can be a pretty daunting task if you don’t know what factors to consider. Find out the level of coverage you need, and remember that going with lower prices can sometimes hurt drivers in the end.

It’s worth noting that an old insurer will keep paying out a claim that was filed before you changed companies, though your new car insurance company won’t handle damage that occurred before you signed the new policy.

Research Average Car Insurance Prices

Taking a look at insurance rates in your area can help you learn how to switch car insurance in a cost-effective manner. According to our rate estimates, the average annual cost of full-coverage auto insurance in the United States is $1,968 per year or $164 per month.

Talking with your insurance agent and asking for a lower premium can help you find the best rates for your new car insurance policy.

Choose Your Level Of Coverage

Your insurance declarations page should show you what your current coverage offers, but here are other factors to consider when switching insurance companies:

• Matching coverage: If you want an exact replacement for your old insurance policy, check whether you’ll get a lower rate with a new provider when you add on the same types of auto insurance. That could include gap insurance and uninsured motorist coverage in addition to liability coverage.
• Downgrading coverage: Maybe your car is getting old and it’s not worth maintaining comprehensive and collision coverage anymore. That would be the time to consider dropping some add-ons.
• Consider your insurance needs: Going with the cheapest car insurance may be easier on your wallet, but ending up in a situation where you’re not totally protected may cost more than if you stayed with your old provider.

Match A Provider To Your Driving Habits

If your driving habits have changed over the years, it might be worth looking into a car insurance policy that better fits your lifestyle.

Maybe you moved to a new city with an excellent public transportation system. It could be worth checking out an insurance carrier that offers pay-per-mile policies instead of overpaying for coverage that treats you like a regular driver.

Ask yourself how much car insurance you need and plan out how to customize your coverage.

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When Should I Stick With My Car Insurance Provider?

Even though you may be able to save money by changing providers, there are some instances in which keeping things the same is your best choice.

• Accident forgiveness: Not seeing your car insurance rates increase after an accident is a big reason to stay with an auto insurer. Accident forgiveness insurance is typically available when you hold a clean driving record for at least a few years.
• You’re eligible for a discount: It might be worth sticking around if you’re eligible for a loyalty or good driver discount that could help lower your bill.
• You have multiple policies with one provider: One common discount offered by insurance companies is rewarding customers for bundling policies such as auto and renters or home insurance. If you have a few policies with your insurer, canceling your auto policy alone could increase your monthly bill.

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How To Switch Car Insurance: Our Take

Changing from one provider to another seems difficult, but if you do your research, it’s easy–and you could get a lower car insurance premium as a result. There are some instances, too, where it’s better to stick with your current provider. Whether you decide to stick or switch, it’s a good idea to get quotes from multiple providers to find the best balance of affordability and coverage.

Our Recommendations For Car Insurance

If you’re wondering how to switch car insurance, you should research companies and carefully compare quotes. Two standout options are Geico and Progressive, and we’d recommend you consider both for affordable rates and excellent coverage.

Geico: Best For Basic Coverage

Geico offers exceptional coverage for most drivers at relatively cheap car insurance rates, earning it 4.5 out of 5.0 stars in our review of the best car insurance providers. With the company’s A++ rating for financial strength from AM Best, drivers can be confident that their coverage is secure with Geico.

Geico holds an A+ rating from the BBB and offers discounts for military members, federal employees, and cars with extra safety features.

Learn more in our Geico insurance review. 

Progressive: Best For High-Risk Drivers

As the third-largest car insurance company in the country and with coverage available in all 50 states, Progressive is a solid choice if you have a less-than-perfect driving record. Customers are eligible for small-accident forgiveness immediately and get large-accident forgiveness after five years of accident-free driving. 

Keep reading about this provider in our Progressive insurance review.

See these companies head to head in our Geico vs. Progressive comparison.

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FAQ: How To Switch Car Insurance

Below are some frequently asked questions about switching car insurance:

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How We Rate Car Insurance Providers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

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