Expert Guide on How to Switch Auto Insurance

It is often better to switch auto insurance companies rather than be stuck with a policy that’s not right for you. Plus, switching your auto insurance can save you money.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 26, 2022

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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.

Things to remember...

  • Switching auto insurance companies every once in a while can save you money since rates often change
  • You can switch auto insurance companies any time you choose, but some companies may charge you a fee
  • You can find new auto insurance policies by comparing quotes with an online comparison tool

If you’re unhappy with your current auto insurance company and are thinking about changing, you might be wondering how to switch. You might also be wondering when to switch auto insurance — is it after your current policy ends or at any time?

Keep reading to learn how to switch auto insurance companies, the common reasons why people switch, and how you can make the change yourself if you need to. You’ll also learn how to switch auto insurance to another state.

How can I switch auto insurance companies?

Switching auto policies is easy when you know the right steps to take to ensure you remain covered. They include the following:

  • Choose a new policy. You can use a comparison tool to find a new policy. Read through each policy, determine the amount of coverage you’ll get, look at exclusions, and choose the best policy for your family’s needs. There are many different types of auto insurance coverage, so it’s important you know what you need before buying a policy.
  • Purchase your new policy. Confirm you have the coverage you need and the correct start date for your policy. Then buy coverage and print out all of the information and your ID cards.
  • Make sure your new policy is active. After making your purchase, check to make sure your new policy is active. You may have downloaded an app, and you should be able to see the date your policy is effective.
  • Cancel your old policy. Once you’ve determined that your new policy is active, call your old insurance company and cancel your policy.

Of course, each company has its own practices for cancellation, so make sure you know what they are before you get started.

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Can you switch auto insurance mid-policy? 

Changing auto insurance companies mid-policy is pretty common — simply contact your insurance company and let them know you’re switching. But it is important to make sure your new policy begins before you cancel your current policy.

However, keep in mind that there’s a difference between switching coverage and canceling your auto insurance policy. Your insurer may charge cancellation fees if you decide to cancel mid-policy. 

What are the reasons to switch auto insurance companies?

There are several reasons why people might want to switch auto insurance companies. The most common reason is to save money. According to the Insurance Information Institute, there are plenty of ways that one can save money on car insurance. However, saving money on auto insurance rates is just one reason people might change. Other reasons to switch insurers include: 

  • You moved to a new house. If you change locations, especially to a new state, your old insurance company might not be authorized to sell coverage in your new state.
  • Your company raised your rates. Another reason to switch companies is if your auto insurance company raises your rates to a price you can’t afford. That’s when it’s time to start shopping around and comparing quotes.
  • Your last claim was denied. A claim denial or a low claim payout might cause you to feel like your insurance company has let you down, especially if you can’t afford to repair or replace your car.
  • You’re going to add a teen driver. Adding teenage drivers to your car insurance could increase your rates. Consider shopping the market to see if a different auto insurance company will provide you with better rates for the additional coverage you need.

Whatever your reasons, shopping around before you switch is vital.

Will switching auto insurance companies save money?

Switching auto insurance companies can definitely save you money. In fact, you can save up to 40% on your rates by switching companies through comparison shopping.

You can also switch insurance auto insurance to a new provider that offers discount bundles or has formed a partnership with your bank or lending institution. These relationships often lead to specific discounts that lower your rates. 

Comparison shopping can determine if your current rates are better than what’s available. However, each auto insurance company will consider several factors when determining how much risk you present to the company before offering you a quote. 

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Taking the Next Steps to Switch Your Auto Insurance 

Finally ready to switch auto insurance companies? Start comparison shopping for auto insurance policies that can meet your current needs. A great way to do this is to find and compare auto insurance rates online

Remember, if you decide to switch auto insurance companies, make sure your new coverage starts before you cancel your current policy. You could lose your license or face hefty fines for driving without insurance.

If you happen to cancel mid-policy, you may get a refund for the remaining days on your policy, depending on your insurance company and their policies regarding canceling mid-policy or prior to the end of your insurance policy term.

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