How to Change Car Insurance Companies in 9 Easy Steps

Your car insurance policy isn’t set in stone. Maybe your auto insurance rates keep rising, or you’ve had a frustrating customer service experience. Perhaps you’ve moved to a new ZIP code, bought a new vehicle, or found a better deal with another insurance company. Whatever the reason, knowing how to change car insurance companies can save you money and improve your coverage.

In this article, we’ll discuss why switching car insurance providers makes sense, the best time to do it, and provide a step-by-step guide to ensure a smooth transition. We’ll also answer all the related questions you might have through our extensive list of FAQs, which is definitely worth reading.

Why Change Car Insurance in the First Place?

We all want our car insurance companies to work for us, not against us. But, unfortunately, if your current insurer charging you a higher rate or maybe rates keep climbing with no clear reason, you might consider looking for another insurance company that provides the same coverage at a lower price. Also, if you’ve had poor customer service or a claim process that left you on hold for months, you might decide to move on.

There are many reasons behind switching your auto insurance provider. Here are some of the most common reasons to change car insurance companies:

• Rising premiums even though you have a clean driving record.
• You found a better deal elsewhere.
• Experiencing poor customer service (e.g., long wait times, unhelpful insurance agents, and slow claim processing)
• Life changes (e.g., moving to another state, buying a home, getting married, or adding a new driver to your policy)
• Bought a new car which might require more affordable auto insurance.
• You’re adding teen drivers
• Lack of discounts
• Switching to an insurer that lets you bundle auto policies with home insurance or rental insurance.
• Inflexible policies (e.g., your carrier doesn’t offer usage-based or pay-per-mile car insurance policies)
• Your insurer limits coverage for uninsured drivers, roadside assistance, or rental car reimbursement.
• You have an improved credit score which qualifies you for lower auto insurance rates elsewhere.

How to Switch Car Insurance: Follow These 9 Easy Steps

Now that you know why changing car insurance companies can be a smart decision in certain circumstances, let’s walk you through how to do it. Switching your car insurance is straightforward. But if you miss a simple step, it could result in coverage gaps, unnecessary fees, or higher rates. Follow these steps to ensure a smooth car insurance policy transition.

1. Review Your Current Auto Policy First

Before you change your auto insurance company, go through your existing insurance policy carefully. Check the coverage limits, deductibles, and any potential cancellation fees. Some insurance companies might charge you a fee for early cancellation. However, some carriers might even surprise you by offering prorated refunds for unused coverage. Also, confirm your policy’s renewal date so that you don’t face any penalties, coverage gaps, or extra fees.

2. Determine Your Insurance Needs

Life is unpredictable sometimes. So, it might happen that your current car insurance policy no longer fits your new lifestyle. For instance, if you start working from home, you don’t need to drive like every day that you used to do. In such a case, you may only want to maintain usage-based auto insurance along with liability auto insurance.

Besides, if you’ve bought a new vehicle, added a teen driver, or moved to another zip code, your auto insurance coverage may need adjusting. Depending on your lifestyle or newly adopted driving habits, consider whether you need liability auto insurance, comprehensive insurance, collision insurance, or personal injury protection (PIP).

Learn about different types of car insurance coverage to find out which one suits your needs.

3. Compare Car Insurance Quotes

If you want to find the most affordable insurance agency, you need to compare car insurance quotes from multiple providers. This is one of the key steps in switching auto insurance, which comes right after deciding how much car insurance coverage you need.

To do so, you can either directly get quotes from your desired insurance companies or use quote comparison websites including Compare.Com, The Zebra, or GoCompare. You can use mobile apps, and insurance websites, or contact insurance agents and compare rates. To find the best rate, you should receive quotes from at least three providers and compare them.

While getting quotes, don’t just look at the price. Check the insurer’s customer service, claims process, and available car insurance discounts. Always keep in mind that a lower insurance rate means nothing if you have to face a complicated claim process or poor customer service.

Also Learn: How to Lower Car Insurance.

4. Check for Bundling Discounts

If you have home insurance, renter’s insurance, motorcycle insurance, or life insurance, bundling them with your vehicle insurance could result in substantial savings.

Many insurance companies offer discounts when you combine multiple policies with the same provider. Ask potential car insurance carriers about bundling discounts to see if you can lower your overall rates. Additionally, you can inquire about good driving discounts, good credit score discounts, and good student discounts if you’re eligible.

It’s best to discuss these options right after receiving your estimated quotes, once you’ve shortlisted a few potential insurers.

Learn More: What to Do If I Can’t Afford Car Insurance?

5. Verify Financial Strength and Customer Experience

When everything is set and you love the final quote after discounts, you need to research the insurer’s overall customer experience and customer satisfaction in terms of claim processing, policy management, and financial strength. After all, getting a cheap car insurance quote won’t help if the insurance company struggles with the claim process.

So, research the insurance financial stability score using sources like A.M. Best, Fitch Ratings, and the National Association of Insurance Commissioners. Look for customer reviews, complaint records, and overall customer experience before making a final decision. You can find customer reviews from Google Business Profile (GBP) or visiting sites like Yelp.

6. Purchase Your New Car Insurance Policy

Once you have found the best car insurance company, buy the policy before canceling your old one. Set the effective date to start before your current insurance policy ends. We recommend this because even a one-day lapse in auto insurance coverage can increase your premiums. So, while switching your car insurance, always ensure there’s no gap between policies.

7. Cancel Your Old Car Insurance Policy

Now that you have purchased a new auto policy, it’s time for farewell. Contact your old insurance company and request cancellation. Some insurers might require written notice. However, some companies allow to do online cancellations.

Ask for a confirmation email letter to avoid any billing issues. If you paid upfront, you might get a refund for unused coverage. Remember not to assume your policy is canceled just because you have stopped paying for it. Do it officially.

8. Get Proof of Insurance and Notify Important Parties

Once your new car insurance policy is active, download or print your proof of insurance. Keep a digital or paper copy in your vehicle. If you have a loan or lease, notify your lender or leasing company of the switch. Some states also require updating your insurance information with the DMV. If you’re switching because of moving to another state, follow the laws of that state and visit the local DMV office if necessary.

9. Monitor Your First Few Bills

The last thing you need to do after changing your car insurance, is double-check your first few payments to make sure you’re being charged correctly. Verify that any discounts, such as safe driving or bundling discounts were applied. Also, you should keep an eye on your credit history, as some insurers run credit checks that might impact your credit score temporarily.

Find out the average car insurance cost in 2025. Read our article: how much is car insurance?

What Should You Consider Before Switching Auto Insurance Carriers?

Before changing your auto insurance, avoid rushing the process. Even if you’ve found a better deal with lower premiums and more flexibility, there are a few important factors to consider before making the switch. Here’s what you should do before taking the next step:

• Check for potential cancelation fees and refunds for any upfront payments.
• Make sure the new car insurance policy offers equal or better coverage than your current one.
• Don’t forget to cross-check and compare coverage limits, deductibles, and car insurance rates.
• Compare bundling benefits as well if you carry multiple policies for home, renters, or life insurance.
• Check whether the new policy meets your lender requirements, particularly when you have a loan or lease on your vehicle.
• Don’t just fall for cheaper auto insurance premiums. Research insurance companies for customer satisfaction and claims processing efficiency.
• Different states, like Florida or New Hampshire have unique insurance laws. Check whether the new policy complies with state laws.
• Switching before your policy renewal date might help you avoid extra fees or lost loyalty discounts.
• If you have accidents, tickets, or open claims, you might not get a cheaper car insurance rate.

When Is It Bad to Change Car Insurance?

Not every moment is the right time to cancel your current policy and buy another. In some cases, waiting can save you money and stress.

• You have an open claim
• You just switched recently
• Times when you’ll lose loyalty discounts
• If you haven’t found a better deal
• Your credit score dropped (As credit score affects your car insurance rates)
• Your policy has high cancelation fees

Please note that when it comes to credit scores, residents of California, Hawaii, Michigan, and Massachusetts don’t have to pay extra, even if they have poor credit scores. These states ban the use of the credit scoring system to determine car insurance rates.

Pros and Cons of Changing Auto Insurance Companies

How Do I Sign Up for an Auto Policy from L.A. Insurance?

Changing your automobile insurance company can offer numerous benefits and flexibility, including cheaper premiums, lower down payments, and reduced monthly payments.

According to a ValuePenguin study, 92% of policyholders who recently switched their auto insurance providers saved money. The study also reveals that 26% of policyholders saved $200 or more annually after moving to a new provider.

If you’re not a policyholder of L.A. Insurance or haven’t explored quotes, we would love to offer you our most affordable full coverage auto insurance policy. Whether you live in Michigan, Colorado, Texas, Florida, Georgia, Arizona, or Nevada, we can provide maximum protection for your vehicle in the event of accidents, collisions, or damage caused by natural disasters.

Here’s how you can sign up for auto policies from L.A. Insurance:

1. Find an agent and discuss getting a new car insurance policy
2. Compare rates with your existing policy  
3. Or reach out to us directly by filling out the Contact Us form.
4. You can also directly get an auto insurance quote online.
5. If you love the rate, you can insure your vehicle the same day.
6. If you need to know anything else, dial us at (800) 893-9393.

Changing Your Car Insurance Companies: The Bottom Line

Switching car insurance companies can save you money. And if you’re fortunate enough, it can also improve your coverage. But timing and research matter. Shop around, check car insurance rates, compare multiple policies, and finalize your new insurer. While doing it, don’t cancel your existing policy too early. First, buy a new policy and then cancel the previous policy so that you don’t face a coverage gap. However, if switching doesn’t make sense, stay put. Keep in mind that the right insurance policy is not just a cheaper one but also one that offers extensive coverage options, reliable customer service, and a smooth and faster claim process.

Related FAQs on Switching Car Insurance

Can You Switch Car Insurance at Any Time?

Yes, you can switch car insurance anytime. There are no legal restrictions but check your insurance policy for cancellation fees or refund policies. The best time to switch is before renewal to avoid penalties and make sure you experience an easy coverage transition.

Can You Switch Car Insurance Mid-Policy?

Yes, you can change auto insurance mid-term. However, some insurance companies charge a fee if you cancel early. You may also lose loyalty discounts. Always confirm the new policy is active before canceling the one to prevent coverage gaps.

When Can I Switch My Car Insurance?

The best time to switch car insurance is before your policy renewal date, after a premium increase, or when you find better coverage. Switching might save you a few hundred dollars if you’ve moved, bought a new car, or improved your credit score.

How Much Does It Cost to Change Car Insurance?

Cost vary. As has been said, some car insurance companies charge a cancellation fee, but some may not. Some top insurers even offer prorated refunds. The main cost is your new policy’s upfront payment. However, if you switch at the right time, you can minimize fees and maximize savings.

Will My Car Insurance Rate Go Up If I Change My Provider?

Not always. If you have a clean driving record and an excellent credit score, you will get lower car insurance rates. However, accidents can happen at any time. Or you might get pulled over and receive traffic tickets. If you switch your insurer just after an accident or ticket, you may face an increased premium.

Will Switching Auto Insurance Affect My Credit Score?

It depends. Some insurance companies perform soft credit checks, which don’t impact your credit score. But if you miss a payment or owe money to your old insurer, it could hurt your credit history. Make sure to pay off your remaining balance.

How Often Can I Change My Insurer?

There’s no limit. You can switch car insurance as often as needed. But if you do it too frequently, it might flag you as a high-risk driver. Once insurers perceive you as a risky driver, you’ll pay higher than average drivers for your auto insurance. That’s why we recommend switching once a year at renewal or after major life changes.

How to Switch Car Insurance to Another State?

When you move to a new state, you have usually 30 to 90 days to change your auto insurance. To do it, first, check your new state’s car insurance requirements. Then, compare car insurance quotes from local insurers. Purchase a new policy before canceling your old one to avoid any lapse in coverage. Finally, update your vehicle registration and license at the DMV.

How to Transfer Car Insurance to a New Car?

Contact your insurance company and provide your new Vehicle Identification Number (VIN). Your premium may change based on your car’s value. Because the car’s make and model affect insurance rates. Also, the safety features and risk level of your new vehicle affect your new premium. Always make sure to update your policy before driving the new vehicle.

Can You Switch Car Insurance After an Accident?

Yes, you can do so, but it isn’t recommended. This is because your new insurer will see the accident on your record, which could raise your car insurance rate. Your current insurer will still handle the claim, so changing your car insurance company immediately after the accident won’t erase the accident history. However, if you had a minor accident that doesn’t require any repairs or medical claims, you could simply change your insurer.

Can You Change Car Insurance with an Open Claim?

Yes. But it isn’t considered a good idea. Your existing insurer is still handling the claim. Your new insurance company may charge a higher premium if the accident or claim affects your risk profile. That’s why we believe, switching car insurance companies after the claim is closed/resolved is the best thing you can do.

How Can I Change My Car Insurance Address?

Contact your insurance company and update your address online or through a mobile app. Moving to a different ZIP code can impact your car insurance rates. If you have moved to another state, you may need a new policy.

How Long It Takes for a New Auto Insurance Policy to Become Effective?

Most car insurance policies become active immediately or within 24 hours. Some insurers allow you to set a future start date. You should always confirm the effective date to prevent gap in coverage when changing auto insurance. Learn about how long does it take to get car insurance to understand this better.