Margaret Huntley Last Updated On: June 27, 2023

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How to Switch Car Insurance

There are several tips you should be sure to keep in mind when switching up your car insurance, including:

  • Consider All Coverage Options: The amount of coverage that you require will depend not only on what you’re willing to spend but also on what you need out of your policy. A lower-value vehicle may not need as much comprehensive coverage as a newer vehicle, for example. 
  • Check Potential Cancellation Penalties: While many companies will allow you to cancel at any time, this is not always the case. Contact your provider to inquire when you are allowed to cancel and any potential fees that come along with terminating your policy. 
  • Compare Multiple Insurance Carriers: It’s certainly no secret that you should compare quotes from a number of different insurance companies to find the best price. But be careful to not fall into a pattern of just checking a couple of the mainstream policies; researching a variety of insurance companies yields the best results. ConsumerCoverage can help you with the legwork and compare all available quotes to find you the best rate for your needs.
  • Inquire About Savings With Current Carrier: Maybe switching insurance providers won’t be necessary to save money. It’s very possible that you are missing out on discounts or other money-saving practices with your current company. It can’t hurt to call and ask! 
  • Research Potential New Carriers: You should always know who you are trusting with your insurance coverage. Be wary of scams, and also consider the value of good customer service. If a deal seems too good to be true, it probably is. 
  • Avoid a Lapse in Coverage: Your new policy should begin on the day that your old policy expires. This is because a lapse in coverage leaves you vulnerable to legal penalties (like driving while uninsured) and premium increases. Make sure you do not cancel your policy until you have a new one lined up. 
  • Ensure Old Policy Is Canceled: Just because you’ve stopped making payments on your existing policy does not mean that your coverage has ended. Unpaid bills can affect your credit, so it’s important to contact your previous provider to ensure that your plan has been terminated. 
  • Let Lender Know of Changes to Car Insurance: If your vehicle is loaned or leased, your lender needs to know about the changes in your coverage. While sometimes they will automatically be updated by your insurance provider, it’s best to contact them directly to ensure that all their information is straight. 
  • Don’t Forget to Print New Forms: All your paperwork needs to be up-to-date. This means printing out your new policy forms and keeping them in the appropriate places.
All decisions about your insurance should be made with care. After all, it’s your money and vehicle that’s at stake. Be sure to avoid making any rushed decisions and take the time to research an insurance provider and read through the coverage before making a decision.

Why Switching Car Insurance Companies Might Be a Good Idea

Besides the fact that there may be a better price available elsewhere, there are some major life changes that indicate it may be time to switch car insurance providers.  Here are some examples:
  • Moving to a new ZIP code, city, or state 
  • Adding or removing a driver from your policy 
  • Adding or removing a vehicle from your policy 
  • Driving significantly more or less than before
  • Changes to your credit score (not applicable in California, Hawaii, or Massachusetts)
  • Marriage or divorce 
  • Becoming a homeowner 
  • Changing careers 
  • Experiencing poor service from your current provider 
All of these circumstances have the potential to affect your insurance premiums significantly or prompt you to need a new insurance provider. You should understand that different providers may be better suited to different situations.  For example, you may have the best policy around in your current city from a local provider. But after moving, that provider is no longer able to offer the best price on the market and it’s time to start shopping around for auto insurance. 

When It’s Time for a Car Insurance Change

Ensuring that you keep the best possible price on your car insurance means that you might consider switching policies at some point. It’s recommended that you at least compare quotes from several different companies at each renewal period, to ensure you’re still getting the best rate for your coverage.

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Switching Auto Insurance: What You Should Know

There’s nothing wrong with switching auto insurance every renewal period. After all, if it puts more money back in your wallet and gets you the coverage you need, what’s the harm? But be sure to maintain continuous coverage to avoid any costly lapses and make sure you take the time to check that the new policy is indeed the right fit for you. 

Margaret Huntley Margaret Huntley is a creative writing and philosophy student at Western University. She has been working as a freelance writer for over two years and has written about everything from insurance, to poker, to health and wellness for international businesses.

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