How to Change Auto Insurance Companies

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Things to Remember...
  • Changing auto insurance companies isn’t as difficult or tedious as it sounds
  • The best time to switch is when you are up for renewal
  • You want to save money while enjoying the same coverage, so you should use your current levels when comparing quotes
  • Shop around by visiting sites that let you compare different auto-insurance companies
  • Look at online reviews of the company from other consumers

Changing auto insurance companies isn’t as difficult or tedious as it sounds. Making a switch like this can save you hundreds on your auto premiums.

However, there are a few things you should keep in mind when making this kind of change. Use research to get knowledge about the decision you could be making.

Enter your ZIP code into our FREE auto insurance comparison tool to see rate quotes offered for you before you buy!

Learn About Your Current Cancellation Requirements

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The best time to switch is when you are up for renewal. However, you can switch anytime in most states.

Before committing to a company and signing another contract, talk to your existing company to see if you will be charged any fees for leaving before the term completes.

If you have prepaid your auto insurance, find out if you can receive a refund for the unused portion. Even if you need to wait a few months to avoid penalties, it’s still a good idea to start shopping around ahead of time.

You can always profit from research about your ability to save on current car insurance rates. Car insurance comparison websites make it quick and free.

Use Your Current Coverage

To get cheap auto insurance is meaningless if you have inadequate coverage. You want to save money while enjoying the same coverage, so you should use your current levels when comparing quotes.

The levels can always be changed or adjusted later, but when you are trying to find a company offering a better price, make sure you are using the same coverage levels across the board.

Shop Around

Start by visiting sites that let you compare different auto-insurance companies. The process is incredibly fast, and you will only have to enter your information once.

After submitting your information, you will receive quotes from different agencies. Compare the quotes to find the two or three most affordable companies.

Research

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Start by researching different companies if you are ready to start looking at company reviews. Agencies like JD Power provide valuable ratings in areas like customer service, ease of paying bills and insurance offerings.

Avoid companies with extremely low customer satisfaction ratings, as they may not be there for you when you need them most.

Look at online reviews of the company from other consumers. You should expect to find something negative about any company; it’s simply part of doing business.

However, the bulk of the information should be positive and indicate that the company supports their customers and pays claims promptly.

Financial ratings from agencies like Moody’s and A.M. Best are also important. These ratings are a strong indicator of a company’s financial strength and their ability to pay claims.

Look for stable companies that are rated with at least a B or higher.

Finding a trustworthy auto insurance company may seem difficult, but with the right amount of online research and rate comparisons, you can know exactly what to look for.

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Signing with the New Company

Once you have selected the company you will switch to, you are ready to sign up with them. This will ensure that you do not have any lapse in coverage, keeping you legal and protected at all times.

You can go through an agent or call the company directly, depending on the company you choose.

If your current company will provide you with a partial refund, then you can sign up for immediate service.

If you need to wait until your existing policy expires, then have the new coverage begin the day your existing coverage expires.

It is vital that you do not have any lapse in coverage as this can result in steep fines with some states.

Cancelling the Old Policy

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When choosing the right auto insurance company, there are a few options for canceling the old policy. You can let the new insurance company handle the process for you, provided they offer that service.

If you choose this option, be sure to get something from them in writing showing that they handled this step.

Another option is to cancel the policy yourself. Most companies require that you send a written letter informing them of your intent to cancel the policy.

Do not cancel the old policy until you have confirmation that the new one will be in effect. However, it is a good idea to call them a few weeks in advance, rather than trying to complete the process on the day your policy expires.

The Law

Most states require that drivers carry insurance coverage though there is a difference in state minimum auto insurance coverage between states.

Failure to do so can result in steep penalties and fines. Many states require insurance companies notify them when they sign a new customer or lose an existing one.

If the state receives notification that you are no longer insured, but they do not have a notice showing that you have acquired insurance elsewhere, you could be facing serious legal troubles.

This is why it’s vital that you have the new insurance ready to go before canceling the existing policy.

If everything goes right, you will have seamless auto insurance coverage. The new plan will pick up where the old one left off, and you will enjoy lower premiums.

The process isn’t difficult, and most companies will even assist you with canceling the old policy.

The most challenging part will be choosing your new auto insurance provider, and with the help of comparison sites that will be a breeze.

Enter your ZIP code into our FREE auto insurance comparison tool to make finding the best rates possible for changing auto insurance companies easy!

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

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