How to Switch Auto Insurance Companies in 2024 (Clear Step-by-Step Instructions)
You can switch auto insurance companies by assessing coverage needs, reviewing fees, comparing quotes, buying a new policy, canceling the old one, and updating ID cards. Save 10% to 25% by switching and secure rates starting at $22 per month. Start your new policy before the old one ends to avoid a lapse.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Sep 12, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 12, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
How you switch auto insurance companies is by first assessing your coverage needs, reviewing any cancellation fees, comparing quotes, purchasing a new policy, and then canceling your old policy and updating your ID cards.
Learning how to change your policy over to one of the best auto insurance companies will help you get lower auto insurance rates and avoid lapses in coverage.
Find your cheapest auto insurance quotes by entering your ZIP code above into our free comparison tool.
- Step #1: Determine Coverage Amount – Assess needs by assets, budget, and laws
- Step #2: Review Fees – Review any cancellation fees and refund policies
- Step #3: Compare Quotes – Compare quotes for best rates and coverage
- Step #4: Buy and Cancel – Purchase your new policy and cancel your old one
- Step #5: Change ID Cards – Replace ID cards with new policy details
Step #1 – Determine the Amount of Coverage Needed
The first step to narrowing down company options is to consider how much car insurance you need. When you switch companies, you will need to know what types of coverage you want beforehand so you don’t accidentally purchase something you don’t need.
Minimum Coverage Auto Insurance Rates by Provider
| Insurance Company | Monthly Rates |
|---|---|
| Allstate | $61 |
| American Family | $44 |
| Farmers | $53 |
| Liberty Mutual | $68 |
| Nationwide | $44 |
| Progressive | $39 |
| State Farm | $33 |
| Travelers | $37 |
| USAA | $22 |
| U.S. Average | $45 |
For example, while you are required by your state to carry the bare minimum liability insurance, you may wish to purchase more than what your state requires in order to be better protected. You should look at your state minimum auto insurance requirements and see if you want more coverage.
Minimum Liability Auto Insurance Requirements by State
| States | Coverages | Liability Limits | PIP Limit | No-Fault/At-Fault |
|---|---|---|---|---|
| Alabama | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Alaska | Bodily injury & property damage liability | 50/100/25 | X | At-Fault |
| Arizona | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Arkansas | Bodily injury & property damage liability, personal injury protection (PIP) | 25/50/25 | $5,000, optional | At-Fault |
| California | Bodily injury & property damage liability | 15/30/5 | X | At-Fault |
| Colorado | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Connecticut | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Delaware | Bodily injury & property damage liability, personal injury protection (PIP) | 25/50/10 | $30,000 | At-Fault |
| Florida | Property damage liability, personal injury protection (PIP) | 10/20/10 | $10,000 | No-Fault |
| Georgia | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Hawaii | Bodily injury & property damage liability, personal injury protection (PIP) | 20/40/10 | $10,000 | No-Fault |
| Idaho | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Illinois | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/20 | X | At-Fault |
| Indiana | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Iowa | Bodily injury & property damage liability | 20/40/15 | X | At-Fault |
| Kansas | Bodily injury & property damage liability, personal injury protection (PIP) | 25/50/25 | $9,000 | No-Fault |
| Kentucky | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/25 | $10,000 | No-Fault |
| Louisiana | Bodily injury & property damage liability | 15/30/25 | X | At-Fault |
| Maine | Bodily injury & property damage liability, uninsured motorist, underinsured motorist, medical payments | 50/100/25 | X | At-Fault |
| Maryland | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 30/60/15 | $2,500, optional | At-Fault |
| Massachusetts | Bodily injury & property damage liability, personal injury protection (PIP) | 20/40/5 | $8,000 | No-Fault |
| Michigan | Bodily injury & property damage liability, personal injury protection (PIP) | 20/40/10 | $50,000 | No-Fault |
| Minnesota | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 30/60/10 | $40,000 | No-Fault |
| Mississippi | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Missouri | Bodily injury & property damage liability, uninsured motorist | 25/50/25 | X | At-Fault |
| Montana | Bodily injury & property damage liability | 25/50/20 | X | At-Fault |
| Nebraska | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Nevada | Bodily injury & property damage liability | 25/50/20 | X | At-Fault |
| New Hampshire | Financial responsibility only | 25/50/25 | X | At-Fault |
| New Jersey | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 15/30/5 | $15,000 | No-Fault |
| New Mexico | Bodily injury & property damage liability | 25/50/10 | X | At-Fault |
| New York | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/10 | $50,000 | No-Fault |
| North Carolina | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 30/60/25 | X | At-Fault |
| North Dakota | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/25 | $30,000 | No-Fault |
| Ohio | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Oklahoma | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Oregon | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/20 | $15,000 | At-Fault |
| Pennsylvania | Bodily injury & property damage liability, personal injury protection (PIP) | 15/30/5 | $5,000 | No-Fault |
| Rhode Island | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| South Carolina | Bodily injury & property damage liability, uninsured motorist | 25/50/25 | X | At-Fault |
| South Dakota | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Tennessee | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Texas | Bodily injury & property damage liability, personal injury protection (PIP) | 30/60/25 | $2,500, optional | At-Fault |
| Utah | Bodily injury & property damage liability, personal injury protection (PIP) | 25/65/15 | $3,000 | No-Fault |
| Vermont | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/10 | X | At-Fault |
| Virginia | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/20 | X | At-Fault |
| Washington | Bodily injury & property damage liability | 25/50/10 | $10,000, optional | At-Fault |
| Washington, D.C. | Bodily injury & property damage liability, uninsured motorist | 25/50/10 | $50,000, optional | At-Fault |
| West Virginia | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Wisconsin | Bodily injury & property damage liability, uninsured motorist, medical payments | 25/50/10 | X | At-Fault |
| Wyoming | Bodily injury & property damage liability | 25/50/20 | X | At-Fault |
For instance, with liability auto insurance, you will often see policies listed in the format 25/100/100. This means the state requires you to carry a policy with $25,000 for bodily injury damages per person, $100,000 for bodily injury damages per accident, and $100,000 for property damages per accident.
If you want insurance to pay more than these listed amounts after an accident you cause, you will need to increase your liability limits.
You also should consider whether you want to carry important coverages like collision auto insurance or comprehensive auto insurance to have a full coverage policy. Most insurance companies also offer add-on coverages like roadside assistance or gap insurance.
Consider buying more coverage than the minimum required and determine how much coverage you want before applying for auto insurance quotes.
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Step #2 – Check Cancellation Fees and Refunds
The last thing you want when canceling insurance is to lose large amounts of money due to cancellation fees. Before canceling your current policy, make sure to check the cancellation fees and refunds. Can you switch car insurance companies mid-policy? Yes, but there may be a penalty involved.
If your insurer charges a high cancellation fee, consider waiting until your policy ends to switch, unless the savings outweigh the fee.Daniel Walker Licensed Auto Insurance Agent
However, if your insurance company doesn’t charge a cancellation fee and will refund you the unused premiums, you can cancel anytime without fear of losing money.
Most insurance companies aren’t clear about their cancellation fees and refunds upfront, so make sure to check the fine print on your policy to find out the details. Find out how to cancel your auto insurance.
Step #3 – Compare Auto Insurance Quotes
When picking a new insurance company, it is important to compare multiple quotes to find the best deal. One of the most common reasons drivers may choose to start shopping around and comparing quotes is because they have a new traffic ticket or accident on their record. Find out how to compare auto insurance here.
Below, you can check out the average full coverage auto insurance rates from the top providers to help you determine whether it’s time to change car insurance coverage:
Farmers Full Coverage Auto Insurance Monthly Rates by Provider & Driving Record
| Insurance Company | Clean Record | One DUI | One Accident | One Ticket |
|---|---|---|---|---|
 | $160 | $270 | $225 | $188 |
 | $116 | $194 | $176 | $136 |
 | $139 | $193 | $198 | $173 |
 | $105 | $250 | $133 | $106 |
 | $174 | $313 | $234 | $212 |
 | $115 | $237 | $161 | $137 |
 | $105 | $140 | $186 | $140 |
 | $86 | $112 | $102 | $96 |
 | $99 | $206 | $139 | $134 |
 | $59 | $108 | $78 | $67 |
| U.S. Average | $119 | $146 | $173 | $147 |
Comparing quotes will help drivers see if a different company offers cheaper rates based on their driving record. If drivers can find companies that can save them money, especially with a ticket or accident on their record, it is often worthwhile to make the switch to get cheap auto insurance after an accident or similar mishap.
I recommend looking at insurance company quotes once a year to ensure you are still getting the best deal on car insurance. Your driving profile and record are always changing, and sometimes that warrants a switch in car insurance to continue getting the best coverages and prices.Jeff Manola Licensed Insurance Agent
Comparing quotes will also help you see which companies offer the coverages you want at an affordable price, especially if you are looking for add-ons like roadside assistance or accident forgiveness.
Step #4 – Buy New Policy and Cancel Auto Insurance
Once you have picked a new insurance company, the next step is to buy your new insurance policy and set a date for it to be activated. The activation date may be the day you purchase the policy or a week later.
You want to buy your new insurance policy and ensure it’s active before canceling your old policy to avoid an illegal lapse in coverage where you are left unprotected on the road.
Even one day without insurance may result in higher insurance rates, so it’s vital to make sure you have coverage before canceling. Make sure you also receive your new digital ID cards and confirmation of insurance coverage.
Read More: How long does it take for auto insurance coverage to be active?
Once you know what day your new insurance policy starts, you can cancel your old insurance policy. Make sure you set the cancellation date for the same day your new insurance policy starts, not before.
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Step #5 –Change ID Cards
Once you’ve successfully signed up with your new insurance company and canceled your old policy, you need to carry your new insurance ID. Download the digital copy if applicable and carry a paper copy in your car. You can discard your old ID cards.
Why Drivers Consider Switching Auto Insurance Companies
Because switching car insurance providers can be time-consuming and a hassle for some drivers, you may be wondering if you should go to the effort of switching your car insurance. Generally, drivers should consider looking into different companies and possibly switching under circumstances like the following:
- Credit Score Changes: If your credit score has drastically changed, switching to a different company may help you find a better rate.
- Driver History Changes. Any accidents or traffic tickets increase rates and make looking into other companies for cheaper rates worthwhile.
- New Drivers or Leaving Drivers: Parents should get new quotes if they have a new teenage driver joining their policy or if a current policy driver is moving away. Read more: When should I add my child to my auto insurance?
- Home Purchase: Other insurance companies may offer better discounts for drivers who are also homeowners.
- Lifestyle Changes: If you are working from home or retired and therefore driving less, another company may be cheaper.
Marriage, purchasing a new vehicle, or significant rate changes—whether due to a move or an accident—also warrant comparing companies. Essentially, any changes to your driver profile or history can result in rate increases, making it worthwhile to switch car insurance after an accident or lifestyle change.
Your current car insurance company may be the cheapest for you now, but that doesn’t mean it will always be the best choice for your needs.
When Not to Switch Auto Insurance
While switching companies can result in cheaper rates, this doesn’t mean you should always look into switching. Some of the reasons not to switch include:
- You Won’t Qualify for Some Discounts: If you don’t stay with a company long, you won’t qualify for certain auto insurance discounts like loyalty program discounts that can save you money down the road.
- You May Be Charged Cancellation Fees: If your insurance company charges high fees for cancellation, you may want to hold off on switching.
- You May Not Be Able To Get the Same Full Range of Coverage: If another company is cheaper but doesn’t have the coverage you want, it is probably worth staying with your current provider to be fully covered.
- You Have an Open Claim: If you have an open claim, you should hold off on switching until your claim is settled. This will help you avoid the headache of handling a claim at your old company while switching to a new one.
Just because a company is cheaper doesn’t always mean that you should switch car insurance. Sometimes it is worth staying with your current provider.
Best Time to Switch Auto Insurance Companies
Is there a penalty for changing auto insurance? No. You can switch to a new car insurance company at any time, but if you are charged cancellation fees for early cancellation, it may be best to wait until the end of your policy term.
When switching car insurance companies, making sure your new policy starts before your old insurance policy ends is essential to avoid a lapse in coverage. Because your driver profile and record constantly change, shopping for quotes every year is a good idea.
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Getting quotes from multiple companies when switching is the best way to ensure you get a good deal. Use our free quote comparison tool to find the best rates from car insurance companies in your area.
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Frequently Asked Questions
How do I switch car insurance companies?
Wondering how to switch car insurance companies? Start by determining the coverage amount you need based on your assets, budget, and state requirements. Then, check for any cancellation fees or refund policies from your current insurer.
Compare quotes from different providers to find the best rates and coverage options. Once you’ve chosen a new policy, purchase it and cancel your old one. Finally, update your insurance ID cards with your new policy information.
Why would I want to switch auto insurance?
There are several reasons why you might consider switching auto insurance. These include wanting to find a better rate, better customer service, additional coverage options, or if you have had a negative experience with your current insurer. Read more: Do all auto insurance companies offer the same thing?
Can I switch auto insurance at any time?
You can change car insurance companies at any time, but you may be subject to cancellation fees if you cancel before your policy term ends.
How do I know if it’s the right time to switch auto insurance?
It’s a good idea to evaluate your auto insurance coverage on a regular basis, especially when your policy is up for renewal. You can consider switching auto insurance if you find a better rate with another provider, if your needs have changed, or if you’re dissatisfied with your current insurer’s service.
Will my new insurance company cancel my old auto insurance policy?
Your new insurer is not authorized to cancel your current policy, but the company can send proof of new coverage to your current insurer.
What are the risks of changing insurance companies?
Switching insurance companies can have some risks, such as coverage gaps if the new policy doesn’t start immediately after the old one ends. You may also face cancellation fees from your current insurer or lose any loyalty discounts you had accumulated. Additionally, if you switch providers too frequently, it could raise concerns with future insurers, potentially affecting your premiums. It’s also worth considering whether you can get a refund if you switch auto insurance, as this could impact your decision to switch and your overall costs.
How do I cancel my current auto insurance policy?
To cancel your current auto insurance policy, you should contact your current insurance provider directly. They will guide you through the cancellation process, which may involve providing a written notice and returning any required documents or insurance cards.
It’s important to coordinate the timing of your new policy’s start date with the cancellation of your old policy to avoid any coverage gaps.
Can I change car insurance before the renewal date?
Yes, you can change auto insurance before your policy renews. However, check to see if your insurer charges cancellation fees and ensure your new coverage starts before your old policy ends.
What should I consider when looking for a new auto insurance company?
When searching for a new auto insurance provider, consider factors such as coverage options, pricing, customer service reputation, financial stability, discounts offered, and the ease of claims process. It’s important to find a provider that meets your specific needs and preferences. Read our guide on how to choose an auto insurance company for more information.
Is it bad to switch car insurance companies often?
Generally, it’s not bad to regularly switch insurance providers and can be beneficial for your rates and coverage. However, you may lose any loyalty discounts you’ve earned if you switch, and some companies could charge a cancellation fee. Always review your existing policy before deciding to switch insurance companies.
What is the best time to switch car insurance?
The best time to switch car insurance is when your current policy is up for renewal, as this helps you avoid cancellation fees. It’s also a good idea to switch if you find a significantly better rate or if your needs change, such as after purchasing a new car, moving, or experiencing a life event like marriage.
Can I switch car insurance with an open claim?
Yes, you can switch car insurance even if you have an open claim, but your current insurer will still be responsible for processing and settling the claim. It’s important to ensure your new policy is active before canceling your old one to maintain continuous coverage. Read more: How long can an auto insurance claim stay open?
Does switching car insurance affect my credit?
Switching car insurance usually does not affect your credit score. However, some insurers might perform a soft credit check when you apply for a new policy. Soft credit checks do not impact your credit score. It’s still a good idea to check your credit report periodically to ensure there are no errors.
Do I need to cancel my auto insurance before switching?
You must cancel your current coverage before buying new auto insurance because you cannot have two active insurance policies on one vehicle.
Can I switch car insurance mid-policy?
Yes, you can switch car insurance mid-policy, but you may face a cancellation fee if you do so before the policy term ends. Be sure to coordinate the start of your new policy with the end date of your old one to avoid any gaps in coverage. Always check with your current insurer about any potential penalties for early cancellation. Find out whether mid-contract changes affect auto insurance rates in our article.
Does switching car insurance save money?
Switching car insurance can save you money if you find a provider offering lower rates or better discounts for your specific situation. Comparing quotes from different insurers is key to finding potential savings. It’s also worth considering bundling other insurance policies, like home and auto, for additional discounts.
Explore your auto insurance options by entering your ZIP code into our free comparison tool below today.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.