Switching auto insurance providers doesn’t have to be a big deal.
If you’re a car owner, you probably already have car insurance. At least some amount of coverage is required in almost every U.S. state, and in the few states where it isn’t, having auto insurance is still a good idea.
But you may feel like it’s a good time to change providers, perhaps because you think you could get a better rate, you need a different kind of coverage or for some other reason entirely. Luckily, switching car insurance is a fairly simple process, as long as you’re prepared. Here’s how to switch auto policies.
One of the most common reasons for switching car insurance providers is that your current rates have increased, and you may be curious to see if you can get a better deal with a different company. Another commonly reported reason for switching is if you filed a claim with your current car insurer and were dissatisfied — either with the amount you were offered or the process.
It’s always a smart idea to shop around and compare quotes before settling on a new provider. Set aside some time to do this research; you want to ensure you’re getting the right policy for your needs (and your wallet). Here is a quick refresher on how to compare car insurance quotes:
You can start with your state’s minimum requirements. You’re usually required to carry some level of liability insurance. Bodily Injury (BI) covers the cost of injuries (or death) that result from an accident you caused; Property Damage (PD) covers damage made to another car or piece of property you crash into.
State minimums are generally low when it comes to adequate coverage. As such, you should also consider all the other kinds of car insurance coverage you might need. These coverages include:
You’ll also want to figure out what you want your deductible to be. That’s the amount you’ll pay out of pocket before your insurance takes over. The higher your deductible, the lower your premiums — but you have to be prepared to pay the full amount of your deductible if needed.
Once you’ve decided how much insurance you want, you can start shopping around. Some providers will quote you based on what you’ll pay monthly and some will show the annual cost of the policy, so make sure you’re comparing prices by the same metrics.
When insurance shopping, you should also check out online reviews and the insurer’s J.D. Power rating. Here at Policygenius, we can help you compare car insurance quotes and make sure you’re choosing a policy that’s right for you.
Switching auto insurance can be fairly easy, depending on your driving record and your claims history. But before you apply for a new policy, you’ll want to make sure you’ve got all the required information and documents, including:
Once you have selected a new policy, you will need to cancel your old one. You can do this by calling your soon-to-be-former car insurance company directly. Sometimes, your new car insurer or brokerage can assist with the transition. Policygenius, for instance, will cancel the old car insurance policy for you.
When switching from one car insurance provider to the other, it’s super important to make sure your coverage doesn’t lapse during the transition. To do this, you’ll want to make sure the cancellation date of your old policy and the effective date of your new policy are the same. Insurance policies begin and end at 12:01 AM on a given date, so you don’t have to worry about having a full day of overlapping insurance.
There are always ways to save money when choosing a car insurance policy. Look into any and all discounts you may qualify for. Common car insurance discounts include: .
You can also usually get a discount by bundling your auto and homeowners insurance through the same carrier, so be sure to consider this option when you shop around. If you are already bundling, it makes sense to re-shop your car insurance and homeowners insurance in tandem.
Learn more about getting car insurance discounts.
If switching car insurance is so simple, then why doesn’t everyone do it all the time? Well, switching insurance can help you find a better rate, but switching providers too frequently can also mean missing out on loyalty discounts.
Most major carriers offer continuous insurance discounts for staying with them for a certain number of years. Find out whether you qualify for a loyalty discount with your current provider and be sure to factor that in when considering switching car insurance.
About the author
Anna Swartz is a Managing Editor at Policygenius in New York City, and an expert in auto insurance. Previously, she was a senior staff writer at Mic, writing about news and culture. Her work has appeared in The Dodo, AOL, HuffPost, Salon and Heeb.
Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.
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