How to Switch Car Insurance Companies
Are you wondering how to switch car insurance companies or if it’s even a good idea? In some cases, changing
car insurance can help you save money while ensuring your policy fits your needs. To transition to a new company, you’ll want to:
- Compare car insurance coverages: Do research on what other companies offer. To find out prices, you can get different insurer quotes. Just remember that the cheapest car insurance company might not have the best customer service. You’ll want to read reviews from other customers on how their car insurance companies have treated them.
- Contact your current insurance company: To cancel your policy, you’ll likely need to talk to a representative and send in written confirmation that you’d like to stop your coverage. Make sure you qualify for new insurance before canceling your existing policy.
- Make sure your insurance protection doesn’t lapse: As you switch insurance companies, it’s important to make sure you never lose coverage.
- Buy your new policy: Talk with your new insurance company to find out how much car insurance you need. Insurance companies offer many optional coverages that may be right for you. Also, be sure you are purchasing at least the minimum amount of coverage required in your state. To be sure you’re never without coverage, the start date of your new insurance should be on or before the end date of the policy you’re canceling.
Switching Car Insurance Companies in 6 Steps
1. Understand Your State’s Insurance Requirements
Requirements for
state car insurance vary. So, before you switch coverages, you’ll want to read what your state insurance requirements are to understand what you need and at what limits.
2. Compare Car Insurance Quotes
To find the best rate, you’ll want to get
car insurance quotes from various insurance carriers. To get a quote, you’ll need to provide your:
It’s also important to remember that the cheapest insurance isn’t always the best. Be sure to look at the company’s
car insurance reviews and ratings when making your decision. Also, make sure that you’re comparing quotes with the same levels and types of coverage.
3. Check for Cancellation Fees & Penalties
Many car insurance carriers have early cancellation fees and penalties that vary in price. To check these penalties, you can:
- Visit your insurance provider’s website
- Call an insurance representative
- Talk with your agent
4. Avoid a Lapse in Coverage
As you switch coverage, make sure to look at the timing of your new policy’s start date and your old policy’s cancellation date to make sure you’re avoiding a
car insurance lapse. In some states, you can be penalized for not having
car insurance coverage, even for a short period of time. You’ll also have to pay out of pocket for any accidents during this lapse in protection.
5. Ensure Your Old Policy is Canceled
If you’ve switched your policy, it’s important to make sure your old one is canceled so you’re not stuck paying for two policies. In many cases, you’ll need to officially cancel your policy in writing. It can be helpful to talk with a representative at your insurance company to ensure you’ve done everything correctly and request confirmation that your policy is terminated.
6. Swap Out Your Old Insurance ID Cards
Once your new coverage is effective, you’ll want to be sure you have proof of insurance. They may be sent in the mail, but are sometimes sent digitally, so be sure to print them if needed. Replace your old insurance ID cards with your new ones. If you’re in an accident or are stopped by the police, you’ll need to provide this proof of insurance.
Is It Bad to Switch Auto Insurance Companies?
Switching car insurance companies is not bad as long as you’re getting the coverages you need from your new insurance company. You’ll need to call your current insurance company to cancel your policy. Be sure to request written confirmation of the cancellation. It’s also important to make sure that your new coverage starts before, or on the same day, that your old policy ends to avoid any gaps in protection.
Can You Cancel Your Car Insurance Policy at Any Time?
Yes, but depending on your car’s policy, there may be early cancellation fees. These can range from around $20 to over $200. Sometimes when you switch insurers, you may also lose out on deals that can last throughout multiple policy terms. Companies typically offer these car insurance discounts because they’re trying to build a loyal customer base.
So, if you see a company offering policies for less than what you currently pay, keep in mind that this lower rate may increase significantly the next year if you renew. You also may not have access to certain benefits you have with your current insurance company.
How Often Can You Switch Car Insurance?
Not sure where to find the
best car insurance? You can find top insurers by researching and comparing quotes from different companies.
If you’ve recently had a change that will impact your rate, you may want to look for a new policy. For instance, if your credit score has increased or decreased, your rate will likely change and you may be able to save by switching.
Another example of when you might want to consider switching car insurance is when you’re buying a new car. You’ll want to check to be sure you’re covered if your new car is totaled. If not, you may want to think about switching your car insurance to a different carrier. For example, The AARP® Auto Insurance Program from The Hartford1 offers New Car Replacement.§§ If your new car is totaled, your policy will help pay to replace it, regardless of depreciation.
Switching car insurance companies too often can cause you to lose out on benefits that are offered to loyal customers. Most insurance companies want to create long lasting relationships with their customers, and they reward them for it.
How Often Should You Switch Car Insurance Companies?
The amount of times you switch your auto insurance is up to you. Generally, it’s good to shop around for
car insurance quotes every six to twelve months. Ideally, you’ll want to time an insurance coverage switch when your current policy period is up. This can help you avoid cancellation fees. The
Insurance Information Institute recommends comparing at least three different
car insurance companies. They also provide resources to help you continue your research so you can find a company with the right coverage for you and quality customer service.
Switch Car Insurance and Save With The Hartford
The AARP Auto Insurance Program from The Hartford has a variety of
car insurance discounts and benefits to help save you money. For instance, we offer:
- Disappearing deductible:‡ Your collision deductible will be reduced over time, as long as you maintain a clean driving record.
- New car replacement:§§ If you total your new car, your policy will help pay to replace it.
To learn more, get a
car insurance quote from The Hartford today. You can also call our representatives at
888-413-8970. The Hartford's representatives can help walk you through all our insurance products and services.
Last Updated: January 16, 2025