Get A Variety Of Quotes
When you begin your search for a new car insurance company, be sure to get different quotes from a wide variety of providers. Each company may offer different forms of coverage for different prices. It may take a little extra effort, but getting many quotes will give you more opportunities to find a policy with lower premiums that also meets your specific needs.
Why Would I Switch Insurers
There are many reasons why you may want to switch insurers.
- Are you unhappy with the current level of service? Common issues with service include too little or too much communication, problems when making a claim, unhelpful customer support or difficulties with offshore call centres.
- Do you want better value for money? Its important to reassess your needs each year when you renew your policy. Your insurance may have been great value for money when you first got it, but premiums and circumstances change and this may no longer be the case.
- Have your circumstances changed? Maybe you have a new young driver raising your premiums, youve moved to an area with a higher or lower crime rate or you have a different source of income now. A lot of things will affect insurance costs and needs, so changing car insurance policies is a good way to adapt and find better prices.
- Are you eligible for discounts? You may now be eligible for discounts that your current insurer doesnt offer. These could be multi-policy discounts for getting multiple products from the same insurer, freebies that come with a new policy, periodic bargains or anything else that looks tempting.
- Is your current policy the cheapest on the market? It may be as simple as that. New brands enter the market all the time, and offering low prices is a great way for them to steal customers away. Letting yourself get stolen by a competitor might lead you to a great deal.
How To Switch Car Insurance To Another State
Switch to a new provider once you’re settled in your new state, as costs depend on the state, location and commuting distance. On the other hand, if you’re happy with your current provider, call your agent to learn how to transfer the policy.
Remember to keep the current policy active until you reach your new home, as it’s illegal to drive across state lines without insurance.
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Can I Switch Companies If I Have A Loan On My Vehicle
Yes, you can switch companies if you have a loan on your vehicle. If you find a new insurance company with policies that match your auto insurance needs and your budget, it is possible to make the switch. During the process, you should make sure your new policy reflects that your lender or lessor is an additional interest. If not, the lender may get a cancellation notice from your previous insurer but may not receive the new policy details. If this happens, the lender may think thereâs a lapse in coverage. If you receive a letter about proof of insurance from your lender or lessor, contact your financial institution with your new policy details, or send the letter to your new insurer so they can update your policy and offer proof of insurance to your lender.
Are There Good Reasons For Not Switching Car Insurance Companies
Yes. You may not want to change insurers if:
- You’re already saving money by bundling your car and property insurance. If you’re already getting a great rate with your current insurance company and are happy with the service, you may not want to switch.
- You just recently switched car insurers. If you switch insurance companies frequently, insurers may feel you’re a risk for not sticking around very long and may not be so generous when it comes to applying discounts. Make sure your reason for changing car insurers is warranted.
- You don’t have a quote that can actually be purchased. Most insurance companies offer customers the option of getting an instant car insurance quote online. But remember, the quote you get is just that – a quote.
The last thing you want to do is cancel your current policy before actually purchasing the new one. Make sure the quote you get online is accurate and that the policy is confirmed before switching insurers.
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How Do You Switch Car Insurance Companies
When you decide to switch insurance companies, a few simple steps make the process easy.
When switching car insurance companies, be sure to:
- Examine your current policy. See when your policy ends and if there are cancellation fees.
- Shop around. Compare rates and coverages from multiple companies to find your best deal.
- Set up your new policy. Finish the sign-up process, and get your new policy ready to begin.
- Let your current insurance company know youre leaving. Find out about any fees and see if your insurer owes you a refund.
- Change out your insurance cards. Carry your new insurance cards in your vehicle. You can also download a mobile app to your phone if your insurer uses one. Remember to give your lender updated insurance information if you have a car loan or lease.
If you’re shopping for a new car insurance company, it’s important to research the best options before choosing a company.
Clearsurance has rankings of the best car insurance companies according to customers, which you can filter by your state or ZIP code.
Once you’ve selected a few auto insurance companies you’re interested in, you can read reviews on Clearsurance to learn about the experiences other customers have had with that insurer.
When Not To Switch Car Insurance Providers
While you can switch car insurance at any time, that doesnt mean every time is the best time. Be aware that some car insurance companies give discounts based on how long youve had a policy with your provider. So, if you switch companies after a month, you wont be eligible for a loyalty discount.
Check with your car insurance company to see if it charges a cancellation fee within a certain timeframe. Most companies let you cancel without any fees, but this isnt always the case. You might want to wait until your policy expires to avoid any fees.
Also, its best not to switch your car insurance company while you have an open at-fault claim. While youre allowed to do this, your rates can increase to account for the cost of the claim once its settled or at your next policy term. If you have to switch during a claim, make sure you are completely honest about it with your new provider, as leaving anything out could result in even higher rates.
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Switching Car Insurance: Conclusion
Switching your car insurance policy can be a benefit to you if you are paying higher rates, have a better credit score, or when you or a covered family member moves. However, we recommend thoroughly searching around and comparing your options before making a decision. While it takes time to find the best rate and switch your car insurance company, it can be worth it in the long run.
Enter your ZIP code below to quickly compare rates from multiple providers in your area.
What Happens When You Switch Your Car Insurance Provider After An Accident
When your car is involved in an accident this means that your insurance premiums are going to increase when it is time for renewal. This is because insurance companies consider you as a risky customer, and generally they increase your premium at renewal time.
So, because of this, it MIGHT seem like the solution is to quickly shift insurance providers after an accident, as a way to save money. But, unfortunately, thats not the case.
In fact, when you do this right after an accident, youre probably not going to save any money by switching your insurance.
Basically, lets say you get into an accident today and your car insurance wont get renewed for six more months. Then for these six months, youre still going to be paying your old pre-accident premium rates. BUT, if you switch insurers right after your accident, your premium rates will start showing an increase immediately!
While there is nothing to stop you shopping around for better coverage and benefits, consider actually making that change about a year or so after your accident, as your premium rates that went up will gradually decrease over time.
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Check If You’ll Be Charged A Cancellation Penalty
Most insurance companies allow you to cancel auto insurance if you provide proper notice. Some companies, however, may charge an early cancellation fee or even refuse to refund the unused portion of your prepaid car insurance.
You can call your insurance company or review your policy’s terms and conditions to determine if you’ll be charged a cancellation penalty. Knowing in advance will help you decide whether to switch right away — or wait to cancel until it’s time for your policy to renew.
If there is a cancellation penalty, look into new-customer or insurance transfer discounts from your new insurance company. It may offset your existing insurance company’s cancellation fee.
What You Need To Know About Switching Car Insurance Companies
You can change car insurance mid-policy, but you may be subject to cancellation fees if you switch before the renewal period. State insurance laws ultimately determine if a company can charge to cancel a policy early. Fees can be anywhere between $30 and $50 or 10% of your annual rates.
Youll have to switch auto insurance companies if you move to a new state where your current coverage isnt available. You might also want to switch if you were recently married, divorced, or are adding a teen or new driver to your policy.
The easiest way to change car insurance companies is to shop around and compare multiple quotes from local insurers. Use our free comparison tool below to get an idea of what companies are charging in your area and where you can save money.
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Double Check Your Old Policy
Once you have canceled your old insurance policy and have your new one, confirm that your old policy was actually terminated. Even if you aren’t receiving bills for your insurance premiums, this doesn’t necessarily mean that your policy has been canceled. If you fail to confirm that your policy has been canceled, you may be sent to collections, which can negatively impact your credit score. Contact your old insurance company and let them know that you are terminating your policy. Ask that they send you a letter confirming termination. This will allow you to have a written record of cancellation if you find a negative mark on your credit score.
How Do I Cancel My Current Car Insurance Policy
Cancelling your current policy should only be done once your new policy is ready to go to avoid having gaps in your cover.
- Notify your insurer in writing.
- Pay any cancellation or administration fees.
- Make sure you tell your insurer you are cancelling your policy, because if you just fail to renew it without contacting your insurer, you might be considered in default of payment and could end up with a black mark on your credit record.
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Can I Switch Car Insurance Companies While I Have An Open Insurance Claim
Yes, you can switch car insurance companies while you have an open insurance claim with your current insurer. If the accident occurred while you were covered under your previous insurance policy, that insurer needs to handle your claim.
You will have to stay in touch with your previous insurer to resolve any open claims.
Can You Switch Before The Renewal Date
With enough notice, auto insurance companies will generally allow you to cancel your policies for your current coverage at any point. However, switching mid-policy may come with some cost to you. If youre cancelling early, the insurance company may prorate or short-rate your refund. Check out our cancellation calculator for a rough estimate of what cancelling early may cost you.
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Switch Your Car Insurance In 8 Easy Steps
Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs.
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to stricteditorial integrity,this post may contain references to products from our partners. Here’s an explanation of how we make money.Our content is backed byCoverage.com, LLC, a licensed entity . For more information, please see ourInsurance Disclosure
When To Switch Car Insurance Companies
Aim to compare car insurance rates at least once a year to get the best deal. But you dont need to wait until your policy ends to make the switch. You can change companies whenever you want: mid-policy, at the end of your term or even two days into your term.
You can even switch companies if you have an open insurance claim, but your current insurer will still be responsible for handling it.
Other common times when you may want to switch car insurance companies include when youre:
Experiencing poor customer service.
Seeing a spike in your car insurance premium.
Planning to move.
Adding a new driver to your policy .
Buying or adding a new car to your policy.
Seeing a drastic increase or decrease in your credit score unless youre in California, Hawaii or Massachusetts. Those states ban car insurers from increasing rates depending on credit information.
Increasing or reducing coverage.
About to renew your policy.
Even if none of these situations apply to you right now and youre happy with your company, its worth taking the time to shop around. Some auto insurers use a practice called price optimization to charge loyal customers higher rates because theyre less likely to switch companies.
Keep in mind that your car insurance rate will stay the same during your entire policy. For example, even if you receive a speeding ticket, get into an accident or have another violation in the first month of a six-month term, your rate wont increase until you renew.
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How To Switch Auto Insurance In 5 Steps
Switching car insurance companies is easy, and people do it all the time. However, its a good idea to talk with your current insurer and see if there are any cancellation fees. If you let your insurance agent know you want to cancel, they may also offer to search for extra discounts or give you a lower rate.
When youre ready to start looking for new coverage, heres what to do.
Things To Consider Before Switching Car Insurance Provider
The most common mistake people make while selecting an insurance company is to make haste while getting their car insured. As a policyholder, you need to invest some time in analysing your requirements and understanding how good an insurance company is. If you are confused about switching to a new insurer, then the following points will help you make a clear decision.
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Why Did My Rate Change After I Received A Quote
Several factors can influence a rate change between the time you received your quote and when you decided to purchase your policy. If it’s been a few months since you received your quote, rates may have been revised in your area, which could decrease or increase the price you pay for your car insurance policy. If you recently received a quote, it’s possible that something on your driving record â or the driving records of others on your policy â prompted a change in the quoted price. Please contact us at , and we’ll assist you.
Ask About Cancellation Fees And Refunds
Find out upfront about any fees or possible refunds from your current insurer. Many companies allow you to cancel for free at any time, but some might charge a fee if you cancel mid-policy.
You may get a refund if you switch well before your policy runs out. For instance, if you paid for a six-month policy but decide to switch after four months, your insurer should reimburse you for the remaining two months worth of coverage .
If you are entitled to a refund, your insurer ideally will pay it with no fuss, but customers occasionally struggle to get back what theyre owed. Address this issue right away when you cancel your policy and follow up with your insurer in case of delays.
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You Can Switch Insurers Even When You Have An Open Claim
Switching insurance companies won’t have any impact on an open insurance claim you have. Your current insurer will still pay out the claim as it normally would, even if you stop coverage from them. However, keep in mind that you’ll have to deal with two car insurance companies simultaneously until the claim is paid out.