Is it bad to change car insurance companies?
It is not necessarily bad to change car insurance companies. Moving to a new area, bundling your insurance policies, and finding a better deal elsewhere are some popular reason people switch. Make sure your new policy is in effect before your old one is canceled or you may face a lapse in coverage. Compare car insurance quotes to find the best deal for you.
Free Car Insurance Comparison
Secured with SHA-256 Encryption
UPDATED: Sep 27, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single provider.
Our insurance industry 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 car insurance. Our goal is to be an objective, third-party resource for everything car insurance related. We update our site regularly, and all content is reviewed by car insurance experts.
- Switching car insurance companies can be a great idea if you’ve recently moved, found a better deal, or want to bundle your policies
- By comparing the offers of different car insurance companies, you can often save quite a bit and may secure better discounts
- Be sure to review your options and select a policy that best fit your needs
Is it bad to change car insurance companies? Switching your car insurance provider may actually be a good decision, but don’t switch insurers randomly or on a whim. There are some risks with changing insurance companies, but with proper planning they can be avoided all together.
However, if you are planning a move, buying a new vehicle, or experiencing any other major life events, you could save by switching.
Switching is also optimal if you have found a better deal, a better policy, or simply a better provider for your needs. Understanding what to look for in a good policy is the first step to securing coverage best suited for you.
Companies use unique metrics and guidelines to calculate car insurance premiums, so you never know what possibilities are out there until you look. The best strategy would be to compare your options before going through with switching.
Before you learn more about if it is bad to change car insurance companies, enter your ZIP code above to compare local car insurance quotes for free.
When should I switch car insurance companies?
There are quite a few instances where it may be best to switch car insurance companies. Reflecting on your current situation will help to make the most sense of when to switch.
If you’re currently in the middle of your term, you may wonder, can I change car insurance before the renewal date? The answer is yes, car insurance companies typically allow cancellations mid-term. You may face some associated fees, so be sure to weigh the pros and cons.
Here are the most common reasons drivers switch their car insurance:
Switching Car Insurance Companies When You Moved to a New Area
You likely will not need to change your car insurance if you’ve moved within the same ZIP code. However, if you moved to a new state, your insurer may not provide coverage for that area. You will need to switch car insurance companies as soon as possible.
Switching Car Insurance Companies When You Found a Better Deal
The pricing models and available discounts vary wildly from provider to provider. Switching to a company with better offers could easily help you save hundreds of dollars each year.
For more tips on how to save, consider these five ways to save on car insurance today.
Switching Car Insurance Companies When You Want to Bundle Your Policies
Bundling is one strategy that definitely helps to save money. Utilizing the same company for your life insurance, home insurance, car insurance, and other needs often comes with great benefits and discounts.
Switching Car Insurance Companies When You Want Better Customer Support
Unfortunately, not all insurance companies are made equal. Maybe you’re tired of being on hold for hours or never getting a response to your queries. Switching is likely the best choice and will save you a lot of frustration in the long run.
Switching Car Insurance Companies When Your Lifestyle and Needs Have Changed
Your insurance coverage should change as you do. Your driving habits, family structure, and general needs evolve over time. Be sure to consider your personal growth when thinking about switching providers.
Switching Car Insurance Companies When Your Credit Improved
Rejoice! If your state allows insurance companies to use credit-based scores in their pricing model, you could save big. Switching to a new provider after a major growth in credit is a smart idea.
Switching Car Insurance Companies When You Need to Add a New Driver
Adding new drivers can severely affect your rates, so comparison shopping for what other options you have will help you secure the best deal.
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How to Switch Car Insurance Companies
Canceling your car insurance policy is pretty simple, but make sure to have a new policy selected before you cancel. Having a lapse in car insurance coverage is not only dangerous, it can also affect your rates in the future.
According to the Insurance Information Institute, it’s important to get at least three quotes from different insurance companies before switching. That way you have a variety of options and a good idea of what to expect.
It is also a good idea to check out any possible discounts that you might be able to get for switching providers, which you can see in the table below.
|Provider||New Customer / New Plan Discount||Switching Provider Discount|
Get Your Rates Quote Now
Once you have selected your new car insurance provider, contact your previous insurer and ask them about their cancellation policies.
Most companies allow cancellations over the phone, but you may need to sign a cancellation notice as well.
Once you submit your request for cancellation, you will receive confirmation that your coverage through that company has ended. Be sure to retain this confirmation in your records and reap the benefits of your new car insurance coverage.
Now that you more about if it is a bad idea to change car insurance companies, enter your ZIP code below to instantly compare the best deals from car insurance companies near you for free.