How To Switch Your Car Insurance

Weigh all the costs and benefits before switching your car insurance. Choosing an insurer with a focus on customer satisfaction could save you time and money in the long run.

Steps to switch car insurance

1. Obtain quotes from car insurance companies.
   When considering each quote, confirm that the coverage levels are sufficient for your needs.

2. Compare “apples to apples.”
   Ensure that each quote has an equivalent policy term length, policy limits, and coverage options before making price comparisons.

3. Consider customer satisfaction.
   You could benefit from the added value of having an insurer with a superior customer and claims experience.

4. Choose your new policy’s effective date.
   If you decide to make the switch, choose an effective date that ensures continuous coverage. This will allow you time to cancel your policy with your former insurer without overlap or a gap.

5. After purchasing your new policy, contact your former insurer.
   Provide the effective date of your new policy. Your former insurer will align the cancellation date with the new policy’s effective date.

6. Notify your lender or lessor that you have changed your insurance policy
   You will also have to provide your loan or lease information to the new insurer.

Information you’ll need to provide to get a quote:

• Driver information (includes all licensed drivers)
• Full name
• Driver’s license number
• Date of birth
• Vehicle information
• Vehicle identification number (VIN)
• Estimated annual mileage
• Address where the vehicle will be garaged

You may also need to provide the names and birthdates of other household members (children, parents, grandparents, roommates), including non-drivers.

Do not cancel your old policy before purchasing a new one

Wait to cancel your former insurance policy until after you have purchased a new policy. Your former insurer may even ask for proof of insurance when you call to cancel.

If you cancel your old policy before obtaining a new one, you could have a gap in coverage. This would make you an uninsured driver until the new policy takes effect. Neither your old or new insurance company will pay a claim that occurred outside of the agreed coverage dates.

Being uninsured for any amount of time can also increase the cost of your new policy.

Can you switch auto insurers in the middle of a policy term?

It is possible to switch your car insurance in the middle of a policy term. Your former insurer will compare the premium paid against the actual policy term. If there is an overage, they will refund you the difference.

You can also switch insurance companies during a claim. However, you will need to continue working with the former company to resolve it. The new insurer will not take over an old claim.

Is frequently switching car insurance providers a good idea?

It can be tempting to shop around for auto insurance at the end of your policy term. You could benefit from changing your auto insurance provider if:

• You are looking for an insurer with a proven record of providing value and superior customer service.

• You want to upgrade to an insurance provider that focuses on building long-term relationships.

• You need a specific endorsement that is only available from certain insurers.

• You are moving to a new state that your prior insurer does not service.

• You’ve recently gotten married and need to combine your and your spouse’s policies.

• You are looking for opportunities to save.

However, there are a few ways that shopping around can cost you money:

• Focusing only on price could result in a policy that provides less coverage.

• Insurers that cut administrative costs to reduce premiums may be difficult to work with if you need assistance.

• Auto insurers can use the length of time a driver spends with one insurer as a factor in their rates. Drivers who switch often may pay more.

• Often, discounts are available if you keep your auto and homeowners, renters, or condo insurance with the same carrier.