How to Change Auto Insurance Providers in 2024

Just because you choose a car insurance company doesn’t mean the decision is final. Whether you want to lower your insurance rates or are unsatisfied with the service, deciding to switch insurance companies isn’t a complicated process.

However, there are several things to consider before you decide to make the switch, such as cancellation fees and determining how much coverage you need. This guide will cover all the basics and nuances of changing auto insurance companies. 

Keep reading to learn how to cancel auto insurance and why you should switch insurance companies.

Why should you switch insurance companies?

Switching car insurance companies can often result in lower monthly rates, especially if you’re moving out of state or adding a new driver.

The top reasons to shop around and consider a change include the following:

• Moving to an area with more expensive rates
• Purchasing a new car
• Adding a new or young driver to a policy
• Someone who drives your vehicle moving in or out of your home
• Getting married or buying a house
• Cutting down on miles due to changes like working from home or parenting

A shift in your driving profile is the main factor that ties all these situations together. 

Since each car insurance company uses its own formula for calculating rates based on many factors, it’s important to look at what other providers offer. Even something as small as changing ZIP codes could make an impact on the rates you pay. Learn more about the average cost of auto insurance. 

In addition to cost, other things to consider when switching auto insurance companies include any negative experiences you had with claims through your current provider. 

Even though most states require drivers to be insured, that doesn’t mean bad service should be tolerated. If you’re unsatisfied with your insurer’s performance, it may be time to make a switch.

When To Change Auto Insurance Providers

The main reason to consider switching car insurance companies is when you are unsatisfied with the coverage, cost, or customer service your current provider offers. Sometimes a policy may look attractive on paper but only live up to expectations once used. Switching could benefit your wallet and peace of mind if this is the case.

It’s also a good idea to shop around when renewing your policy each year, as rates can change significantly over time — new providers may offer more competitive rates than what you currently pay. Learn more ways to lower your auto insurance premiums.

Additionally, if you have had any life changes (such as getting married or buying a new home), review the different coverage options available and see if you can get a better deal.

Finally, if you have recently moved to a different area or state, you’ll need to switch companies, as most insurers only offer coverage in specific locations. Research the local providers near you and compare auto insurance quotes to ensure you’re getting the best possible rates.

When Not to Change Auto Insurance Providers

It is generally beneficial for drivers to switch their car insurance companies when better rates or policies are available, but that does not mean it is always the best idea.

Sometimes, a driver should keep their car insurance provider the same, including when:

• The premiums of the new quote are only marginally cheaper than your current policy. 
• Your current policy has numerous benefits and perks you would lose by switching companies.
• You’ve been with your current company for a long time and qualify for loyalty discounts, accident forgiveness, and other perks.

While saving money on auto insurance can be attractive, switching providers to save a few dollars may not be worth it in the long run. It is always wise to shop around for car insurance quotes from various companies to ensure you are getting the best rate possible. 

However, switching car insurance providers should be done with seriousness as there may be drawbacks that could cost you more money than you would save by making a change. Assess your options carefully before deciding whether or not it is worth it to switch your current policy.

How to Switch Auto Insurance Providers

Making the switch to another car insurance company doesn’t have to be complicated. These steps will highlight how you can easily make the switch.

Determine How Much Coverage You Need

The first step to changing your auto insurance company is to determine the type of auto insurance coverage you need. 

For example, every state requires minimum liability insurance, and you must carry that coverage to drive legally. Likewise, your lender will require that you have full coverage auto insurance if you lease or finance your vehicle.

Additionally, consider any other special needs you may have, such as having a teenage driver on your policy, as you may want to consider adding additional coverage to protect yourself.

You may also want to increase the amount of coverage to offset any potential losses if you don’t have an excellent driving record. Consider factors like your driving record, age, and the type of vehicle you drive when making this decision. This will help ensure that you are adequately covered in the event of an accident or other claim. 

Ask About Auto Insurance Discounts

Once you’ve determined how much coverage you need, shop for quotes from different companies. Compare coverages and prices to find the best fit for your budget and needs. Choose a company that is reliable with positive customer reviews.

Then, explore the top auto insurance discounts to see which you qualify for at each company, as these can save you money down the road. 

Make sure to read through the policy details and ask any questions you have before signing any paperwork or committing to anything. You must understand exactly what is covered under your policy so there are no surprises down the line.

Evaluate Refunds and Cancellation Fees

Once you’ve decided to change your car insurance company, it is important to evaluate the refunds and cancellation fees associated with your current policy. Your current insurer may have a cancellation fee or prorated refund that you will have to pay to switch policies.

Here are the standard cancellation terms for the major auto insurance companies:

• No cancellation fee: Geico and USAA
• Cancellation Fees: Progressive (Up to 10% of remaining premium)
• Undisclosed cancellation fee: Allstate, State Farm, Liberty Mutual, Farmers, Nationwide, Travelers, and American Family

Before making any changes, carefully read through your policy details to understand the costs or fees associated with switching companies. This way, you don’t have to worry about unexpected costs or coverage gaps when changing car insurance providers, and you won’t be surprised by any additional costs.

It is also essential to reach out to your current insurer and ask to lower your rates if you stay. Many companies are willing to work with their customers in this regard — some even offer discounts for loyal customers who stay with them long-term. 

By understanding the fees and refunds associated with switching companies, as well as making sure to read through both policies thoroughly, you can ensure an easy transition to a new auto insurance company.  

Compare Auto Insurance Providers Online

Once you’ve determined the amount of coverage you need and evaluated any potential refunds or cancellation fees associated with switching companies, another critical step is to shop around for different quotes. 

Get started now with our how to buy auto insurance guide, or compare free quotes with our comparison tool below.

When shopping around, it is important to make sure you’re considering all the factors when making your decision. Be sure to read through each policy thoroughly to compare coverage limits and deductibles accurately. Consider customer service ratings and reviews for each provider to select one with positive feedback and reliable customer service. 

Here are some helpful resources you can use to research different companies:

• The National Association of Insurance Commissioners (NAIC): Scores car insurance companies based on the average number of consumer complaints they receive. 
• J.D. Power: Looks at overall customer satisfaction and claims satisfaction in its studies and assigns a score to each company. 
• A.M. Best: Rates companies using letter grades based on their financial strength and ability to pay out claims. Higher ratings indicate more financially stable companies.

Finally, when selecting a new auto insurance provider, be sure to ask about discounts and incentives offered. Taking advantage of these discounts can save you money over the long term, so be sure to ask about them before making your final selection. 

Don’t Let Auto Insurance Lapse

It is important never to let your car insurance lapse, as this could lead to fines and a loss of coverage. It can also make it difficult for you to find auto insurance in the future. 

Contact your insurer immediately if you cannot afford your auto insurance premiums. It may be able to offer different payment options or discounts that can help make rates more affordable. Additionally, it can provide advice on other ways you might be able to save money on your car insurance policy without sacrificing quality coverage. 

When selecting a new car insurance provider, keep in mind that some companies offer automatic renewal policies to ensure that you don’t experience any lapses in coverage due to missed payments or renewals.

Read More: What happens when your Auto Insurance lapses?

Get New Insurance Cards

When you purchase a new policy, your provider will send you updated insurance cards that prove your coverage status. Therefore, it’s important to print these cards and keep physical copies on hand.

When law enforcement or other public authorities are asked to verify your coverage, printed cards will come in handy. Drivers may be issued citations or fined if unable to produce proof of car insurance upon request in some states.

Additionally, it’s wise always to keep a printed card in your car. In the event of an accident, having this information available can be helpful for quickly referencing important coverage details and filing a claim. Having your card nearby ensures peace of mind knowing that you’re always prepared if the situation arises.

By printing out up-to-date car insurance cards, you’ll stay on top of verifying your coverage status and have peace of mind knowing that you’re always prepared if asked to prove your current policy. Auto insurance companies with mobile apps will often issue insurance cards digitally. Check your state laws to ensure these are legally acceptable forms of proof of insurance.

Case Studies: How to Change Auto Insurance Providers in

Case Study 1: Sarah’s Smooth Switch

Sarah had been with her auto insurance provider for several years, but she felt that her premiums were too high. In 2023, she decided to explore other options and began researching different insurance companies. After comparing rates, coverage, and customer reviews, Sarah found a new provider that offered similar coverage at a significantly lower cost.

She contacted her current insurer to cancel her policy and informed them about her decision to switch. The process was straightforward, and within a few days, Sarah successfully switched to her new auto insurance provider.

Case Study 2: John’s Comparison Success

John’s auto insurance policy was up for renewal in 2023, and he wanted to see if he could find a better deal elsewhere. He used online comparison tools to evaluate multiple insurance companies, comparing their rates and coverage options. After thorough research, John identified a provider that offered the same coverage as his current policy but at a lower premium.

He contacted the new insurer and initiated the switching process. Despite initial concerns about the paperwork, the new insurer handled most of it, making the transition seamless for John.

Case Study 3: Lisa’s Exceptional Service

Lisa had been dissatisfied with her current auto insurance provider’s customer service. She experienced delays and unhelpful responses when filing claims or seeking assistance. In 2023, Lisa decided it was time to change insurers and find a company that prioritized customer satisfaction. She researched different providers and found one that consistently received positive reviews for their exceptional service.

Lisa contacted the new insurer and was pleased to discover that their customer service team was responsive and knowledgeable. Switching to this new provider was a breath of fresh air for Lisa, as her concerns were promptly addressed, and she received the support she needed.

Case Study 4: Mark’s Multiple Quotes

Mark was determined to find the best auto insurance deal in 2023. Instead of relying on a single quote, he decided to obtain quotes from multiple insurers. Mark reached out to several insurance companies and provided them with his vehicle and personal information to get accurate quotes. By comparing the rates and coverage options from various providers, Mark was able to identify a policy that offered excellent coverage at an affordable price.

He initiated the switching process by contacting the new insurer, and they guided him through the necessary steps to complete the transition smoothly.

Case Study 5: Emily’s Agent Assistance

Emily was unsure about switching auto insurance providers on her own. She preferred to have professional guidance throughout the process. In 2023, Emily sought assistance from an insurance agent who specialized in helping clients switch insurers. The agent evaluated Emily’s current policy, assessed her needs, and identified several reputable insurance companies that matched her requirements.

With the agent’s guidance, Emily reviewed the options and selected a new provider that offered improved coverage at a reasonable price. The agent handled most of the paperwork and ensured a hassle-free transition for Emily.

Case Study 6: David’s Bundled Benefits

David was looking to streamline his insurance coverage and save some money in 2023. He had separate auto and home insurance policies with different providers. David decided to explore the option of bundling his policies to enjoy potential discounts and simplify his insurance management. After researching various insurers, he found one that offered competitive rates for bundled coverage.

David contacted the new insurer, provided the necessary information, and within a short time, he successfully combined his auto and home insurance policies under one provider, enjoying cost savings and convenience.

Case Study 7: Maria’s Early Termination

Maria’s auto insurance policy was set to expire in a few months, but she had already found a more affordable option. Wanting to take advantage of the savings immediately, she explored the possibility of terminating her policy early. Maria reviewed her current policy terms and conditions and discovered that she could cancel her policy by providing written notice and paying a pro-rated fee.

After evaluating the cost savings, Maria decided it was worth paying the early termination fee and switched to the new provider before her policy expiration date. The process was relatively smooth, and Maria was able to start benefiting from the lower premiums without delay.

How to Change Auto Insurance: The Bottom Line

As you can see, the process of changing car insurance companies is fairly straightforward and can provide numerous benefits, such as lower rates, improved customer service, and increased financial stability.

Before making the switch, be sure to research different providers and their offerings. Contact your current insurer to discuss any existing coverage or discounts that may be worth keeping.

Once you’ve found the right provider for you, take advantage of any available discounts it offers and ensure all paperwork is in order to avoid lapses in coverage. Finally, print out new car insurance cards to ensure you’re always prepared if asked to verify your policy status.

Following these simple steps will save time and money on car insurance while ensuring that your vehicle is properly covered.

Switching car insurance companies could be beneficial in the long run if you are unsatisfied with your current coverage or looking for more competitive prices. Researching the options available and comparing quotes from various providers is always recommended before making a final choice.