Switching car insurance companies can feel like a hassle, so many drivers stick with the same policy for years. But staying put may mean paying more than you need to. The good news is that switching is usually simple if you follow the right order.
This guide walks you through how to switch car insurance step by step, without leaving yourself uninsured for even a day.
Key takeaways
- You can usually switch car insurance at any time, not only at renewal.
- Buy your new policy first, then cancel the old one. Never cancel first.
- Match coverage when comparing so you know you are getting a fair price.
- Confirm your cancellation in writing and watch for a refund of unused premium.
Good reasons to switch car insurance
People switch for many reasons. Some of the most common include:
- Your rate went up at renewal, even though nothing changed.
- Your life changed. You moved, bought a car, got married, or added a driver.
- A violation aged off your record, and you may qualify for better pricing.
- Your credit improved, in states where insurers can use credit-based insurance scores.
- You want better service or a smoother claims experience.
- You want to bundle home or renters coverage with auto.
If your rate jumped and you are not sure why, read our guide on why your car insurance went up before you start shopping.
Step 1: Review your current policy
Before you shop, pull up your current declarations page. This is the summary of your coverage. Note:
- Liability limits for bodily injury and property damage.
- Collision and comprehensive deductibles.
- Add-ons like uninsured motorist, rental reimbursement, or roadside assistance.
- Your renewal date and how you pay.
- All drivers and vehicles on the policy.
This gives you a baseline. It also helps you decide if you want to change anything, like raising your limits. Our guide on how much car insurance you need can help.
Step 2: Compare quotes with matching coverage
Get quotes from several insurers using the same coverage limits and deductibles. If one quote has lower limits or a higher deductible, it is not a fair comparison.
Also look past the price. Consider payment options, discounts, and how easy it is to file a claim. Our guide on how to compare car insurance quotes walks through this in detail.
Step 3: Buy the new policy and pick a start date
Once you choose a new insurer, buy the policy and set the start date. The safest approach is to have the new policy begin on the same day the old one ends, or before.
| Approach | Risk |
|---|---|
| New policy starts before old one ends | Small overlap, but you are always covered |
| New policy starts same day old one ends | Clean switch if dates and times line up |
| Old policy canceled before new one starts | Gap in coverage, which can be illegal and costly |
Pay attention to the time of day, too. Some policies begin or end at a specific time, such as 12:01 a.m. Make sure there are no hours where you are uncovered.
Step 4: Get your new proof of insurance
Your new insurer will give you ID cards, often digitally. Keep a copy in your car or on your phone. Some states also let you show electronic proof during a traffic stop. Rules vary by state, so check what your state accepts.
If you have a car loan or lease, give your new insurer your lender's information. The lender usually needs to be listed on the policy.
Step 5: Cancel your old policy the right way
Now that your new coverage is active, contact your old insurer to cancel. Do not just stop paying. Letting a policy lapse for nonpayment can show up as a cancellation for nonpayment on your insurance history, and some insurers may view that as a risk.
When you cancel:
- Call or use the insurer's official cancellation process.
- Give the exact date you want the policy to end.
- Ask if there is a cancellation fee.
- Ask how and when you will receive any refund of unused premium.
- Request written confirmation of the cancellation.
Step 6: Update automatic payments and records
After the switch, tidy up the details:
- Stop any automatic payments to your old insurer.
- Update your state DMV if your state requires insurers to report coverage or requires you to file new proof.
- Tell your lender or leasing company about the new policy.
- Save your old policy documents in case you need proof of prior coverage later.
When is the best time to switch?
You can switch at any time, but some moments are especially good:
- A few weeks before renewal. You avoid possible cancellation fees and have time to compare.
- After a major life change. Moving, marriage, or a new car can change your rate.
- When a ticket or accident ages off your record. Your risk profile may look better to insurers.
If you have an open claim, ask your current insurer how switching affects that claim. In most cases, the insurer that covered the accident handles the claim, even if you change companies later.
Common mistakes to avoid
- Canceling before the new policy starts. This can create a coverage gap.
- Comparing different coverage. A cheaper quote with lower limits is not a better deal.
- Forgetting about add-ons. Make sure you keep coverage you rely on, like roadside assistance or rental reimbursement.
- Leaving a balance unpaid. An unpaid final bill could go to collections.
- Not reading the new policy. Review exclusions and deductibles before your first claim.
What to have ready before you switch
Gathering a few details up front makes quotes faster and more accurate. Before you start, have these on hand:
- Driver's license numbers for everyone on the policy.
- Vehicle identification numbers (VINs) for each car.
- Your current declarations page.
- Approximate annual mileage for each vehicle.
- Dates of any tickets or accidents in recent years.
- Your lender or leasing company's information, if you finance or lease.
Being accurate matters. Insurers verify driving records and vehicle details, so a quote based on guesses may change when you buy. Telling the truth up front helps you compare real prices, not estimates.
Switching with an open claim or a bundled policy
Two situations need a little extra care.
If you have an open claim, the insurer that covered you on the date of the accident usually keeps handling that claim, even after you switch. Ask your current insurer to confirm before you cancel.
If your auto policy is bundled with home or renters insurance, moving only your auto policy could remove a multi-policy discount on the other one. Ask both your current and new insurer how the change would affect your total cost.
The bottom line
Learning how to switch car insurance mostly comes down to the order of steps. Compare with matching coverage, start your new policy first, then cancel the old one in writing. Done right, the switch may take less than a day, and you could end up with a better price or better coverage.
Ready to see your options? Compare free auto insurance quotes from licensed agencies in our network before your next renewal.
This article is for general information only and isn't legal or insurance advice. Coverage and rules vary by state and insurer.
Frequently asked questions
Switching itself generally does not affect your credit score. When insurers check credit for a quote in states that allow it, they typically use a soft inquiry, which does not lower your score. However, unpaid balances or cancellation fees that go to collections could affect your credit, so settle your final bill with your old insurer.
Driving without insurance is illegal in nearly every state and can lead to fines, license or registration problems, and personal financial risk if you cause a crash. A gap can also lead some insurers to charge more later. To avoid this, start your new policy on or before the day your old policy ends.
If you have a car loan or lease, yes. Lenders and leasing companies usually require specific coverage and want to be listed on your policy. Give your new insurer the lender's details so it can be added as a lienholder or loss payee, and make sure your new policy meets the lender's coverage requirements.