How to Switch Car Insurance Companies the Easy Way

Unsatisfied with your current car insurance company? Are you dreading switching car insurance companies? Switching to another carrier doesn’t have to be a big ordeal. There are a few things you can do to make the process smoother.

Ending your relationship with your car insurance company is not unlike breaking up with a girlfriend/boyfriend. If you have an insurance agent, things can be even more uncomfortable when you kick them to the curb.

You are in charge

The thing to remember when switching car insurance companies is that YOU are in control, not the company. An insurance policy is a contract that can be easily ended by the consumer, but not so easily ended by the company.

The best time to move your car insurance coverage is at the renewal of your policy. You may have a 3-month, 6-month or 12-month policy term, and you can find out when your current policy expires by looking at your policy declarations page or on your current proof of insurance documentation in your vehicle.

Plan ahead, but not too far!

About a month before your current policy renews, start shopping around for another carrier. You don’t want to shop around too early, as rates may change between the date you quote your new coverage and the date of your renewal. Online car insurance quotes will generally prohibit you from quoting too far in advance by limiting the effective date on your quote.

Once you have compared multiple quote and have decided to switch car insurance companies, you have a choice. You can contact your current carrier and inform them of you decision to cancel your current policy at the expiration date, or you can simply allow the policy to expire. If you allow the policy to expire without notifying your current carrier, you will receive payment due notices and policy cancellation notices from the company as required by law. It’s definitely a cleaner transaction if you contact your current carrier and end the relationship at the expiration of your policy.

Firing your insurance agent

If you have an agent, it can be difficult to tell them you are switching carriers. You are effectively “firing” your agent, and some people are uncomfortable with this type of confrontation. To avoid this situation, you can simply write your agent a letter notifying them of your intent to cancel your current policy at the expiration date.  This way the agent can prepare the paperwork to cancel the policy and they will not contact you for non-payment of premium.

Once you have contacted your current company about your intent to cancel your policy, you can move on with your new company. It’s important to note that you DO NOT want any lapse in coverage between your old and new policies. Your new policy must go into effect at exactly the same time as your old policy expires. This prevents any lapse and will ensure you are not left uninsured for any period of time.

Compare rates easily

Switching car insurance companies doesn’t have to be difficult or traumatic, and you could save a substantial amount of money by switching.  If you haven’t shopped your car insurance rates around yet, get started now simply by entering your zip code in the form below and getting multiple quotes from top companies in your area!