Switching car insurance is possible and can be a smart move to ensure your policy matches your changing needs. Many drivers think it’s not very easy, but switching auto insurance companies is easy and best done in a structured way. But before you do, you need to be aware of the pitfalls.
This guide will take you through the 9 easy steps to switching car insurance. It will help you review your current policy, compare new options, and make a smooth transition without costs or gaps in coverage.
By following these steps you can get a policy that suits your current financial situation and coverage needs. Whether you’re an experienced driver or new to car insurance, this guide will give you the confidence and knowledge to make an informed switch for better coverage and potential savings.
Why Switch Car Insurance Companies?
Switching car insurance can be smart to get you the best coverage, service, and price. Many people switch because their current insurance company no longer meets their expectations – whether it’s rising premiums, bad service, or changing circumstances. Knowing the reasons to switch your auto insurance can help you decide if it’s time to look around.
While cost savings are the main incentive for switching auto insurance policies, insurance companies like Insurance Navy offer other benefits beyond lower auto insurance premiums. Some providers offer:
- Lower Premiums
- Better Coverage to match your lifestyle
- Flexible payment options
- Mobile alerts for policy updates and claims tracking
- Discounts for safe driving, vehicle safety features, or prior insurance history
- Better Customer Service
While these benefits are great, 40% of people don’t compare auto insurance quotes as often as they should, meaning they may miss out on cheaper car insurance rates and better benefits.
By reviewing your car insurance policy and having Insurance Navy compare quotes from the top insurance companies, we can find you the best balance of cost, service, and coverage.
If your current insurance company no longer meets your needs, now is the time to switch to Insurance Navy.
Insurance Navy can ensure you have the right policy for your changing circumstances, whether you want better service, lower cost, or improved coverage.
When to Switch Your Car Insurance?
You can switch car insurance anytime, but certain situations present the perfect opportunity for better rates, coverage, or service.
If any of the below applies to you, it’s time to shop around for a better car insurance policy:
1. Your Policy Is Up for Renewal
Renewal periods are the best time to compare quotes from different auto insurers. New providers may offer more competitive rates, promotional discounts, or better benefits than your current car insurance policy.
2. Your Current Insurer Increased Premiums
Insurance companies adjust premiums periodically. If your insurer has increased your car insurance rates without a reason (e.g., at-fault accident or claim), it’s time to shop for a better deal.
3. You Had a Bad Claims Experience
If you had slow claim processing, poor customer service, or an overall frustrating experience, switching to an insurer known for fast and supportive service can give you peace of mind.
4. You’re Buying a New Vehicle
Buying a new car requires reviewing your insurance coverage, especially if you need Collision and Comprehensive coverage. Some insurance carriers even offer discounts for new vehicles, so this is a good time to compare policies.
5. You’re Moving
Relocating to a new state or city can impact your car insurance rates. Since location is a significant factor in pricing, moving is a good time to see if another provider can offer lower premiums. Also, your current company will sometimes not provide coverage in your new state.
6. You’re Getting Married
Combining policies with your spouse can result in significant savings through multi-car and marriage discounts. If you and your partner are insured with different providers, consolidating under one policy can lower costs.
7. You’re Adding a Teen Driver
Adding a teenage driver to your car insurance policy can cause premiums to skyrocket. Comparing auto insurance providers can help you find the best rates and car insurance discounts for young drivers.
8. You’ve Changed Employment or Driving Habits
If your job has changed—e.g., switched to remote work, retired, or significantly reduced your daily commute—you may be eligible for lower premiums based on fewer annual miles driven. Some insurance companies will provide lower rates for driving fewer miles.
9. You Need to Change Coverage Levels
If your driving habits have changed, you may need to change your coverage levels. These could be retiring or just having a shorter commute to work. Shopping for a new provider that offers customizable policies can help you save money.
10. You’ve Hit a Life Milestone (Homeownership)
Buying a home may qualify you for additional discounts, especially if you bundle home and auto insurance. Insurers often reward customers with multiple policies, so this is a good time to shop around.
11. Your Insurer Dropped Coverage or Discounts
Sometimes, insurers discontinue certain insurance discounts or specific types of insurance coverage. If this affects your current coverage negatively, you can switch to an insurer that offers those same benefits, or alternative discounts can save you money.
12. Your Credit Score Improved
Your credit score affects your car insurance rates. If you’ve recently improved your credit history, you may be eligible for lower premiums, so it’s a good time to compare quotes.
13. You’ve Reached a Birthday or Age Milestone
Car insurance rates change at certain age milestones—25, 30, 55, and retirement. Reaching these milestones can mean lower auto insurance rates, so compare quotes to maximize savings.
14. You Want Better Service or Convenience Features
If your current provider lacks modern conveniences such as online insurance claims processing, easy mobile app access, digital ID cards, or 24/7 customer support, switching to an insurer with better features and customer service can make a big difference in your overall experience.
You can switch car insurance providers anytime, but making the change at the right time—during renewal or after major life changes—can help you save more and find better coverage.
How To Switch Car Insurance In 9 Steps
Switching car insurance is a no-brainer that can save you money. Make sure to activate your new policy before canceling the old one. Even a small gap in coverage can lead to big financial problems like fines, license suspension, or higher premiums.
Follow these nine steps to switch your car insurance with continuous coverage.
Step 1: Review Your Current Insurance Policy
Review your current policy, coverage limits, deductibles, and overall protection. This will help you know what you need in a new car insurance policy. Don’t pay for add ons you don’t need or miss out on important coverage.
Step 2: Get Quotes from Multiple Insurers
Get car insurance quotes from several companies to find the cheapest rates. Compare premiums, deductibles, coverage options, discounts, and customer reviews. Use the exact same coverage limits and deductibles across all quotes for a true comparison.
Step 3: Consider the Costs, Fees and Discounts Available
Before you switch car insurance, check with your current company to see if they have cancellation fees. Weigh the savings with your new provider by factoring in the discounts you’ll get from safe driver rewards, multi-policy bundling, or promotional rates. Make sure the long term benefits outweigh the short term costs of switching.
Step 4: Buy Your New Insurance Policy
Once you’ve found the best insurance company, apply for a new car insurance policy. Get your driver’s license and vehicle registration read for the insurance application process. Set your new policy to start before you cancel your old one to avoid any coverage gap.
Step 5: Notify Your Finance Company of Your New Policy
Tell your lender about your new policy if you have a loan or lease. Lenders always require proof of insurance. Failing to notify them could affect your loan or lease agreement.
Step 6: Get A Copy of Your Proof of Insurance Card
Get your new proof of insurance card from your insurance agent as soon as possible. Most insurers offer digital ID cards online or through their mobile apps so that you can access them anywhere. Keep a printed or digital copy in your vehicle for state laws and quick reference in emergencies.
Step 7: Cancel Your Old Policy
Once your new policy is active, contact your previous insurer to cancel the previous policy. Confirm the cancellation date and ask about any refunds. Get a written confirmation of your policy cancellation to avoid any billing errors.
Step 8: Check Your Policy Cancellation and Refund Status
Check for a confirmation from your previous insurer after cancelling your old policy. Check for any refunds you’re entitled to. Keep all your records so you don’t have any billing issues.
Step 9: Update Your Insurance Information
Ensure your insurance info is updated where needed by your lender, DMV (if required), and other relevant agencies. Always keep a digital or physical copy of your updated proof of insurance for legal and practical purposes.
Change Your Auto Insurance to Insurance Navy Today!
Following these steps, switching car insurance can be easy. Looking for personalized service, competitive rates, and customized coverage? Contact Insurance Navy today. Visit us online, call 888-949-6289, or find an agent near you to start saving and simplifying your insurance switch.
With over 20 years of experience and thousands of happy customers, Insurance Navy is a car insurance leader with personalized policies to fit your budget and coverage needs.
Stop by one of our offices to see what we have to offer:
- State-specific minimum insurance requirements
- Extra coverage options to add more protection
- Discounts you may be eligible for
- Benefits of choosing Insurance Navy
We’re located in shopping centers and commercial offices in 12 U.S. states, so finding the right coverage for you has never been easier.
Are you looking to Switch Car Insurance Companies? Insurance Navy can help you find the cheapest car insurance rates!
Insurance Navy offers Cheap car Insurance coverage for all Cars and Drivers. Get a free, cheap car insurance quote online and switch today. Our insurance agents are just one call away: 888-949-6289. Feel free to stop by one of our many storefronts. Insurance shouldn’t be a hassle. Insurance Navy can help.
Frequently Asked Questions
Can I Change My Car Insurance Before the Renewal Date?
Yes, you can change car insurance mid-policy before the renewal date. Just make sure your new policy starts before your old one expires. A coverage gap can cost more in the long run, but a little overlap is better than a gap.
Suppose you cancel your policy before the end of the policy term. You may be charged a cancellation fee depending on the insurer’s policy.
Can I Change My Car Insurance at Any Time?
Yes, you can change car insurance anytime during your coverage period. But some situations make it more beneficial, like when your current policy period is up for renewal, after buying a new car, after a significant life event (marriage or moving), or when your circumstances change and you need different coverage. To avoid a coverage gap, make sure you time the switch correctly.
How Much Does It Cost to Switch Car Insurance?
The cost of switching car insurance depends on your current insurer’s policy on canceling early. Some insurance companies charge a fee for terminating a policy before the end of the term, while others give a pro-rated refund. Review your current policy or talk to your insurer to avoid surprise costs and determine the cancellation fee.
What Happens to My Loyalty Discounts When I Switch Insurance Companies?
When you change car insurance companies, you likely lose any loyalty discounts you have built up with your current insurer. However, many auto insurance companies offer discounts and incentives for new customers, which may offset the loss. Ask your new insurer what programs or discounts are available to compensate for losing loyalty benefits.
Will Changing Car Insurance Affect My Credit Score?
Changing car insurance doesn’t affect your credit score. Insurance companies don’t report policy changes or payments to credit bureaus. However, your credit score may be hurt if an outstanding balance goes to collections. Some insurers use credit scores to determine premiums, so maintaining good credit can give you better rates. But simply changing insurers won’t hurt your credit score.
How Do I Change Car Insurance When I Move to Another State?
If you’re moving to another state, reviewing your car insurance coverage is a good time. If your current provider doesn’t operate in your new state, you must find a new one. Your new state may have different coverage requirements, too. When you get a new policy, ensure your new address is updated, and there is no lapse in coverage during the transition.
Are There Any Downsides to Switching Car Insurance After an Accident?
Most insurance companies don’t adjust your rates immediately after an accident; the increase is usually reflected in your next policy renewal. Switch insurance providers before your current policy expires. The new insurer will consider the recent accident when determining your premium. So you may pay more sooner than if you stayed with your current insurer.
Is It Bad to Switch Insurance Companies Too Often?
Switching insurance providers occasionally can be good – you might get lower rates or better coverage. But changing too often can flag you as a high-risk customer, which could mean higher premiums in the long run. You need to weigh the benefits of switching against the impact on your insurance profile.
