Are you thinking about switching car insurance? You’re not alone. Many people opt to change insurance providers for a variety of reasons including a change in policy, a life event such as getting married or moving, or simply to get a better rate. In fact, prudent drivers compare quotes from top providers annually to make sure they have the best coverage at the best cost.
Whatever your reason, there are a few things to keep in mind when switching car insurance. First, remember that you always need to have insurance when driving your car. So, before you cancel your current policy, make sure you’ve researched, selected, and activated your new policy to avoid a lapse in coverage. Secondly, coverage requirements vary by state, and it’s essential to know your state’s requirements. That way, you’re not underinsured or paying for additional coverage that you don’t want.
Once you determine the coverage you want, get quotes from the best insurance companies for you to start the process of switching car insurance.
What happens when you switch car insurance companies?
Fortunately, switching car insurance is relatively easy. The most important part is researching reliable providers to ensure you find the best quote and coverage available. You can compare policies from multiple companies and select the best option for you.
Here are the most common questions people have about what happens when you switch car insurance companies:
Will I be penalized for switching car insurance companies?
Generally, the rates you pay won’t be negatively impacted for switching insurance providers, even if you do so frequently. A general rule of thumb is to keep your insurance policy for at least 6 months before switching.
Will I be charged cancellation fees?
Although your rates may not be impacted by your switch, some companies may charge a cancellation fee if you cancel mid-policy, so it’s important to check your current provider’s policy before making the switch. In some cases, such as if you already paid for your insurance for the term or your provider charges a cancellation fee, it may make more sense financially to wait until your term is complete before switching.
Does your current policy automatically cancel?
No, your car insurance policy will not automatically cancel when your new policy starts, even if you don’t pay your premium. Once you make the switch, double-check to ensure your previous policy is canceled correctly; it’s best to get written confirmation. You will need to resolve any outstanding claims with your previous provider.
If your current car insurance company lets you cancel for free at any time, then switching car insurance providers is simple. First, start your new policy with a different insurance company. Then let your current provider know you want to cancel your existing insurance. That’s what happens when you switch car insurance companies.