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How to Switch Your Car Insurance in 6 Easy Steps (2022)

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Anna Baluch

By: Anna Baluch

Edited by Jackie Cohen

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

There are a number of reasons you may want or need to switch your car insurance policy. Maybe you’re moving to a new state. Or perhaps you’d like to save some money with a lower rate or wish to add a teen driver to your policy. No matter what your situation is, rest assured it’s not difficult to switch car insurance.

Insurify can make the process a breeze. This easy-to-use car insurance comparison tool can provide you with personalized auto insurance quotes from the best car insurance companies in five minutes or less. Best of all, there are no sign-ups or fees involved. With Insurify, it’s fast and easy to switch your car insurance policy.

When should I switch car insurance?

Drivers should shop around for car insurance every six months to see if they can find a better rate. When you compare quotes on Insurify, switching car insurance is simple.

Quick Facts

  • You might want to switch car insurance if your personal or financial circumstances have changed and your current coverage no longer meets your needs.
  • Before you commit to a new car insurance company, do your research and ensure it’s reputable.
  • If you decide to move forward with the switch, avoid a lapse in coverage, pay any cancellation fee, and collect a refund if you’re owed one.

Step 1: Figure Out If It Makes Sense to Switch

Switching car insurance can lead to better rates and help you save on insurance costs.
However, it’s not always the best idea. There are some situations in which you might want to think twice before you switch. If you’ve had a recent accident or ticket, switching now may keep you from securing the best rates.

Also, if you have a loyalty discount or bundle discount because you pair your car insurance with homeowners insurance or renters insurance, for example, you may want to remain with your current car insurance company. In addition, if you qualify for accident forgiveness, which can save you thousands of dollars, you probably won’t save money by switching.

See More: Best Car Insurance Companies

Compare Car Insurance Quotes Instantly

  • Personalized quotes in 5 minutes or less
  • No signup required

Step 2: Decide How Much Coverage You Need

If you’d like to switch auto insurance, the first step is to determine how much car insurance coverage you need. Do some research to find out your state’s requirements. Then, think about your personal preferences. Also, consider your budget and what you can afford to spend on your car insurance premium.

Remember that too little car insurance can put you at risk in the event of an accident, but too much coverage can take a toll on your finances. Therefore, you should explore various coverage types and make sure your insurance coverage meets both your needs and budget.

See More: Car Insurance Quotes

Step 3: Check for Potential Penalties

While you do have the right to cancel your policy at any time, your car insurance provider might charge you a penalty, like a cancellation fee, for doing so. Do some research and find out whether you’ll be penalized if you switch car insurance. Visit the company’s website or call them directly.

If you discover that you will have to pay a penalty for canceling before your policy term ends, you might want to wait to switch insurance. However, if you come across a new auto insurance policy with a lower premium that makes up for a cancellation fee, changing companies may be worthwhile.

See More: Cheap Car Insurance

Step 4: Compare Quotes from Multiple Car Insurance Companies

Not all car insurance companies are created equal. That’s why it’s a good idea to shop around and explore your coverage options. Get car insurance quotes from several providers for the same coverage. Then, compare car insurance companies, rates, discounts, fees, and customer service rankings.

It’s simple to compare car insurance online with a car insurance comparison tool. The best option is, Insurify. Get quotes in five minutes or less. Since you’ll likely need to share your vehicle year, make, and model, the address where you’ll keep the car, and your vehicle identification number (VIN), make sure you have this info on hand.

See More: Best and Worst Sites to Compare Car Insurance

Step 5: Research the New Car Insurance Provider

If you decide you want to switch car insurance providers, take the time to thoroughly research the new company. Make sure they’re a reputable organization with positive customer reviews and ratings. The National Association of Insurance Commissioners (NAIC), J.D. Power, Standard & Poor, and A.M. Best can all help you learn more about a specific insurer.

While it may be tempting to sign on the dotted line with a new car insurance company right away, doing so can lead to unwanted surprises down the road. While price is a key consideration, working with a highly rated provider is just as important. Excellent customer service and a seamless claims process can make all the difference in your experience.

Step 6: Swap Your Insurance ID Cards

Once you’ve officially switched insurance policies, be sure to change out your old car insurance cards with the ones you receive from your new provider. Even though most states allow for digital proof of insurance and you can download your digital card on your phone, you may want to have the physical ones handy for peace of mind.

Once you switch car insurance policies, make sure your ID cards match the new car insurance policy number.

Save Money by Switching Car Insurance

The greatest benefit of switching insurance is saving money on your premiums. Just by changing car insurance companies, you may free up hundreds of dollars each month. This is great news if you’d like to pay off debt, save for a house, buy a new car, or pad your retirement savings.

As long as you choose a reputable provider and a policy that aligns with your insurance needs and state requirements, switching car insurance can make a positive difference in your finances. Best of luck!

Frequently Asked Questions

  • A lapse in coverage may occur if you switch your car insurance after your current policy expires. This may result in legal and financial trouble, especially if you’re involved in an accident while uninsured. To avoid a lapse and maintain continuous coverage, make sure your new insurance company activates your new car insurance policy before or right when your previous insurance ends.

  • If you decide to switch car insurance companies, you’ll need to take a few steps to terminate your old policy. Contact your current insurance company and notify them of what you plan to do. Then, ask them to confirm your cancellation in writing.

    Depending on your company and its cancellation process, you may be required to sign a form and authorize the cancellation. Don’t forget to log into your online account and cancel any auto-withdrawals. Also, if you pay your insurance premiums through your bank’s bill service, reach out to your bank to stop them.

  • Ideally, you’d review your car insurance policy every year to make sure it still meets your needs. If you’ve gone through personal or financial changes since you first purchased your policy, it’s a smart idea to look for a new one.

    Keep in mind that just because you shop for a new policy doesn’t mean you’re required to switch car insurance companies. You may find that your current car insurance provider continues to be a good fit.

  • Whether you’re entitled to a refund depends on your car insurance company. Some providers will refund the remaining portion of the canceled policy if you paid for it up front. While it might not be a full refund, it should include most of the outstanding balance.

    If an auto insurance company charges cancellation fees, they’ll be deducted from the refund. If you’re unsure of the refund policy, don’t hesitate to check your provider’s website or give them a call.

  • Contrary to popular belief, switching car insurance companies won’t affect an open claim. Your current insurance company will pay out the claim, even if you go with another provider. The main downside is that you’ll have to deal with two different companies until the claim is closed.

  • The simplest, fastest, and easiest way to find cheaper car insurance and switch policies is by comparing quotes on Insurify. Just answer a few questions about your driving history and vehicle, and Insurify will present you with tons of options to choose from. You’ll see quotes from the nation’s largest carriers and even small regional ones in your area.

Compare Car Insurance Quotes Instantly

  • Personalized quotes in 5 minutes or less
  • No signup required
  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Anna Baluch
Anna Baluch
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Insurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.

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