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 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 recently 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 ensures you have the level of coverage you need. We’ll also provide recommendations for a few of the best car insurance companies based on our extensive research.

Why Should I Switch Car Insurance Providers?

Cost is usually the top reason customers ditch their old car insurance policies for new ones. Customers also tend to jump ship when they have less-than-pleasant experiences with their current insurers while filing insurance claims.

But there can be numerous reasons to switch car insurance providers. Below are a few of the top ones.

• You moved to a new city. Car insurance varies by state and even by ZIP code, so if you recently moved, it might be a good time to shop around and compare rates.
• You got married. Married drivers tend to pay less for car insurance than their unmarried counterparts. Additionally, if you and your spouse combine policies, you could save money with a multi-car discount.
• You bought a new car. If you have a new car, you’ll need to update your insurance anyway, so it’s a good time to shop around and see if you can find better rates with a different company.
• Your company is still charging you for an old accident. The length of time an accident impacts your rate can vary by insurance company, so you might want to shop around to see if another provider can offer you a better rate.
• You added a new driver and your policy price increased. Adding a new driver to your policy can increase your rate, particularly if it’s a young driver (your teenager, for example) or someone with a poor driving history. Some insurers offer better rates for higher-risk drivers, so shopping around could help you save money.

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

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How To Switch Car Insurance (7 Steps)

Before switching, find the coverage you need at the best price possible with the following steps:

1. Review Your Current Policy

Taking a close look at your current car insurance policy will give you a good sense of what coverages and discounts to look for when shopping for a new insurer. Your declarations page breaks down everything you need to know, including your coverages and limits, deductible amounts, and all drivers covered by the policy. 

When shopping for car insurance, it’s important to include the same coverage limits and deductible amounts to get an accurate comparison. Make sure you understand your coverage needs before getting quotes from providers.

2. Determine Your Coverage Needs And Deductible Limits

Once you’ve reviewed your existing policy, you can determine if your coverage needs are still the same.

That goes for your deductible as well. Typically, the higher your deductible, the lower your premium will be. But be careful not to set the deductible so high that you can’t afford it. Try to set your deductibles to an amount that you could easily come up with in the event of an accident.

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, accidents, 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. 

We also recommend checking out our in-depth review of some of the best car insurance companies on the market today.

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 your insurance company can’t offer you a competitive rate, 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. This helps to ensure that you avoid a lapse in coverage, which could lead to higher rates with new auto insurance companies.

Next, call your provider or log into your policy’s online account to cancel your coverage. Most insurance companies make it easy to manage your policy entirely online–including cancellations. You should receive a confirmation email indicating that the policy has been canceled. Also, double-check that you stopped auto-payments to avoid surprise withdrawals.

6. Get Your New ID Card

Your new provider should provide you with insurance ID cards that essentially confirm your coverage. Some companies send these in the mail but most can provide ID cards immediately via email or in your online account. You can simply download and print them to have on hand should you ever need them. 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. Most lenders require full coverage (liability insurance plus comprehensive car insurance and collision) on leased or financed vehicles.

Be sure to send proof of your new policy to your finance or leasing company when making the change.

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What To Look For When Switching Companies

Of course, you want to find the best rate possible when switching companies. But you also want to ensure that you have reliable coverage that will be there when you need it. We recommend checking sites like the BBB and reading reviews online to understand how each company delivers on its promises and how satisfied customers are with their claims experiences.

We also recommend checking out our roundup of the best car insurance companies. 

Research Average Car Insurance Prices

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.

Insurance companies use different underwriting methods and are always adjusting rates and premiums, so the best way to find the cheapest car insurance is to compare quotes from numerous providers.

We recommend getting quotes from three to five companies to compare. You might find that one company offers more discounts or that another has lower prices overall than the competition.

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, be sure to input the same information when comparing prices. This will ensure an accurate comparison rather than simply seeing a lower price for less coverage than what you currently have. 
• Downgrading coverage: If your car’s getting older, you may decide you don’t want to maintain comprehensive and collision coverage anymore. Or if you recently paid it off, you can drop coverages like loan/lease gap insurance, which protects you if you owe more than your car’s worth. So take a close look at your policy to see if there are any coverages you no longer need. 
• Balance price with protection: It may be tempting to go with the cheapest car insurance you can find. But make sure that your policy will actually protect you when you need it most. Car insurance is intended to safeguard your finances when things go wrong so be sure to balance price and protection. 

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.

• You currently have accident forgiveness: Accident forgiveness insurance is typically available when you hold a clean driving record for at least a few years. If your current insurer offers accident forgiveness, it could be worth sticking with them.
• You’re eligible for discounts: It might also 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: Many insurance companies offer discounts for bundling policies like your 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 may seem daunting, but if you do your research, it’s easy–and you could get a lower car insurance premium as a result. Before you make the switch, compare coverages and rates from a handful of insurers to find the best protection at the best price possible. 

Our Recommendations For Car Insurance

If you’re planning to switch car insurance, you should research companies and carefully compare quotes. Two standout options are Geico and Progressive, and we recommend both based on their 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 also 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 Usage-Based Insurance

As the second-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.

Progressive has an A+ rating from AM Best indicating superior financial strength and an A rating from the BBB.

Learn more 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 Auto Insurers

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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