Whether or not you're satisfied with your current car insurance policy, you may be able to get a lower premium with a different provider. In fact, insurance experts recommend evaluating your car insurance at least once a year.
If you're thinking about switching car insurance carriers, understanding the process can help you make sure the transition goes smoothly. Here's a step-by-step guide on how to switch your insurance.
1. Review Your Current Policy
Before you start researching alternatives, take a look at your existing policy and note the following information:
- Premiums
- Coverage types
- Coverage limits
- Deductibles
- Discounts
These details can help you evaluate whether you have the right amount of coverage and make it easier to compare other options. You may also want to consider other potential reasons for switching coverage.
For example, if you're moving, getting married or adding a new person to your policy, it's possible that you can qualify for a better rate with another provider than what you're currently paying.
Learn more >> Reasons to Switch Your Car Insurance Now
2. Compare Multiple Quotes
There are several factors that affect car insurance premiums, and each insurer weighs those factors differently. So, regardless of your situation, you may be able to find a better rate for the same coverage—or even more protection—with another company.
You can typically obtain quotes online, but it can be time-consuming to go through that process with each insurance provider individually. Experian can help you compare auto insurance quotes from top insurers with just one submission form.
As you compare your options, it's crucial to confirm that each quote is for the same types and amount of coverage. If you find a better deal than what you currently have, it could make sense to switch and save.
3. Choose Coverage Options
If you like a quote, you can move forward with that insurance carrier to buy a policy. At that point, you can either accept the pre-selected coverage options or customize your policy to fit your needs and preferences:
- Liability coverage: Most states require you to maintain a minimum amount of liability coverage for personal injuries and property damage. However, it's recommended to have much more than the minimum required to protect yourself from personal lawsuits.
- Collision and comprehensive coverage: Both collision and comprehensive coverage may be required if you financed your vehicle, primarily because they protect the lender's investment. They can help cover the costs of repairing or replacing your vehicle in the event of damage, theft or vandalism. The coverage amounts are based on the value of your vehicle, but you can adjust the deductible based on what you can afford to pay out of pocket with a claim.
- Other required coverages: Depending on where you live, you may also be required to purchase other types of coverage, such as personal injury protection, medical payments coverage or uninsured and underinsured motorist coverage. The insurer will typically let you know what's required and what isn't.
- Optional coverages: You may also decide to include optional coverages for more peace of mind. Some examples include rental car reimbursement, gap insurance, roadside assistance, new car replacement coverage and ridesharing insurance.
If you're having trouble figuring out which types of coverage to choose and how much to get, consider speaking with an agent who can help tailor the policy to your needs. Whatever you do, do your best to find a good balance between the policy's coverage and its premium. Saving a little now may not be worth it if you're stuck footing some of an expensive bill later on.
Learn more >> What Is Full Coverage Auto Insurance?
4. Check for Discounts
Before you complete the buying process, research the different discounts the carrier offers so you can make the most of your new policy. Most insurers offer a variety of discounts. Some of the most popular include:
- Multi-vehicle discount
- Multi-policy discount
- Student discounts
- Senior discount
- Homeowner discount
- Pay-in-full discount
- Autopay discount
You may also qualify for savings if you belong to certain organizations or associations. Additionally, many insurers use telematic devices that track your driving habits and may reward you with a discount if you prove to be a safe driver.
Learn more >> Top Car Insurance Discounts
5. Purchase a New Policy
After you settle on your coverage and make sure you get all the discounts you qualify for, the next step is to buy the policy.
At this point, you'll be asked for an effective date for your new coverage, which is when the policy will be in force. You can set any date you'd like as long as you make sure you maintain continuous coverage between your old policy and the new one.
Then, you'll decide whether you want to pay your premiums in monthly installments or in full. Some insurers may even give you other options, such as two, three or four installments. Then, you'll determine your payment method. Depending on the insurer, options may include a credit card, debit card, bank transfer, personal check, money order or even PayPal.
6. Cancel Your Old Policy
Only after you complete the purchase of your new policy is it time to cancel the old one. You can do this by calling your agent or the insurance company's customer support team. In some cases, an insurer may ask you to submit your request in writing using a cancellation form.
When canceling your old policy, make sure you set the effective date to align with the date you're starting your new policy. Even a single day without coverage could put you at risk of not having financial protection, and you may also be in danger of breaking the law.
If you're canceling the old policy before the end of your current policy period, you should receive a refund for the unused portion of the premium. In some states, however, you may be on the hook for a cancellation fee.
Learn more >> How to Cancel Car Insurance
7. Get Your New Car Insurance ID Cards
Once you complete the purchase of your new policy, the carrier may give you a choice of how to receive your insurance ID cards. For example, you may choose to get them in the mail, or you can receive a copy you can print at home.
Some insurance companies may even allow you to pull up your insurance card in their mobile app, though it's a good idea to have a paper copy in your vehicle in case you need it in an area with poor data service.
However you choose to get your new ID cards, put them in your glove box for easy access when you need them.
Tip: All states (except New Mexico) and the District of Columbia allow use of digital insurance cards. You can even save the digital ID cards to your smartphone's wallet.
Frequently Asked Questions
The information you need to get a car insurance quote includes:
- Personal information, including your name, address, phone number, date of birth and driver's license number.
- Vehicle information, including your car's year, make, model and VIN.
- Driver information, including the names and birthdates of all drivers.
You may also need to provide information about your previous insurance policy, accidents and claims.
Absolutely. There are no rules about how often you can switch car insurance providers. Even if you purchased a new policy a few days ago, you have the right to switch to another insurer if you find a better deal.
Some states allow insurance companies to charge a cancellation fee when you end your policy, so it's important to ask your agent about potential costs before proceeding with the cancellation.
Car insurance premiums are typically paid in advance, so if you cancel before your policy period ends, you may receive a refund for the unused portion.
For example, if you paid $600 for a six-month policy and decided to cancel it exactly halfway through the policy period, you'd receive a $300 refund minus any applicable cancellation fees.
If you have an outstanding loan on your car, your old insurance company will notify your lender that they're no longer covering you once you cancel your policy. As a result, you'll want to reach out to your lender and provide details about your new insurance provider to avoid a breach of contract.
There's no rule of thumb for how often you should switch to a different insurance provider. Some of the reasons to consider switching include:
- You want to save money
- You got married
- You're moving
- You want to add someone to your policy
- You're unhappy with your current insurer
- Your driving habits have changed
- You want to bundle policies
- Your credit has improved
It's a good idea to shop around and compare car insurance quotes at least once a year to make sure you're getting the best possible offer available to you.
Improving Your Credit Can Help You Save on Car Insurance
There are many different ways to save on car insurance, but one that might not be obvious is to improve your credit score. In most states, auto insurers can use credit-based insurance scores to help determine your rate. While poor credit typically won't hike your premium on its own, it could compound other negative factors, such as a poor driving record.
With Experian, you can get access to your Experian credit report and FICO® Score☉ for free. With these resources, you can evaluate your credit health and identify ways you may be able to improve your credit score. You can also get real-time alerts when changes are made to your report, making it easier to stay on top of new developments and address problems as they arise.