Here Are Seven Easy Steps For Changing Your Auto Insurance Provider

Renewal of your car insurance policy may seem like an obvious choice to those who have been with the same company for many years. How to switch car insurance providers if your premiums have skyrocketed may be the question on your mind.

Our goal is to show you how to switch car insurance companies so that you save money, don’t get hit with any penalties, and get the coverage that you need. In addition, we’ll offer suggestions based on our analysis of the best car insurance companies in the country.

Why Do I Need to Change Car Insurance Companies?
Car insurance policies are often replaced by new ones because of cost. An increase in insurance costs, an increase in the deductible, or simply finding a better deal elsewhere could all account for this. When customers have a bad experience with their current insurance provider while filing a claim, they are more likely to switch providers.

Drivers may want to know how to switch car insurance companies for the following reasons:

Your insurance premiums went up after you moved to a new city.
A discount that was previously available to you is no longer available to you.
After you bought a new car, your insurance premiums increased.
You’re still being charged for an accident that happened a long time ago.
Your insurance premiums went up because you added a new driver to your policy.
How to change your car insurance policy doesn’t have to be difficult, no matter why you’re considering it. To learn how to do this quickly and easily, continue reading.

How to Change Car Insurance Companies (7 Steps)
Take the following steps to cancel your current auto insurance policy before you’re forced to renew it, which could save you a significant amount of money.

Re-evaluate your existing policy
Looking at your current policy can help you figure out what you need from your new insurance provider. Who is covered, for how long, and up to what amount of money is detailed on your declarations page.

Your policy must include liability coverage, but you may also want to include comprehensive and collision coverage. Start looking into how to switch car insurance by examining the options available and the associated costs.

2. Think About Your Price Range
Estimating how much you’re willing to spend on insurance coverage is the next step in the process. Consider the extent of your insurance needs and the industry’s average costs.

For your deductible, the same holds true. If you’re looking to save money on repairs, you may want to opt for a lower deductible on your car insurance policy.

3. Examine the Car Insurance Policies Offered by Other Companies
Obtain car insurance quotes after determining your coverage needs. How much you’ll end up paying can be determined by looking at three to five different estimates.

When looking for car insurance quotes, keep these things in mind:

Please have your name, date of birth, and address ready to hand over. As part of the process of checking your credit score, many companies will also ask you for your Social Security number.
You’ll need to provide the make, model, and year of your vehicle. Details like your vehicle’s VIN and mileage are also expected.
If you have more than one driver listed on your policy, the insurer will ask for their names, ages, addresses, and the number on their driver’s license.
Driver’s license: Disclosing previous policyholders’ traffic violations, collisions, or license revocations is required.
If you’re looking for a new car insurance company, look at the BBB’s customer ratings and reviews like our Progressive vs. Allstate comparison.

Remember that your driving record, credit score, and the age and model of your car all play a significant role in determining your car insurance rates. ‘

4. Get in touch with your current service provider.
Check with your current insurance provider to see if they will match a lower rate. In addition, see if you’re eligible for other discounts, such as a loyalty discount or savings when you bundle your car and home insurance policies.

If your insurance provider refuses to budge, find out if you’ll be charged a cancellation fee if you leave before the policy’s term is up. For those who have paid in advance, it’s a good idea to get a refund from the insurance company.

Change Is Necessary
Buying a new insurance policy before canceling your current policy is the best way to get cheap car insurance. Avoiding a lapse in coverage will help you avoid higher premiums from new auto insurance companies if you ever need to switch providers.

The next step is to cancel your policy by contacting your old provider. Just in case you need proof of insurance records later, ask for written confirmation that your policy has been terminated. As a precaution, make sure that auto-payments have been turned off.

Get a New Identification Card.
You should receive ID cards from your new insurance provider that include information such as your policy number in the event of an accident. The majority of service providers’ apps and websites have printable versions of these. New Mexico is the only state that does not allow digital proof of insurance.

If applicable, contact your car loan company.
Your lender should know that you’ve changed insurance providers if your car is still under a financing agreement. Since the lender has an interest in your car, you should have it insured against comprehensive and collision damage at the very least.

When making a policy change, provide the leasing company with proof of your new policy.

When Changing Companies, What to Look for
If you don’t know what factors to take into account, figuring out how to switch auto insurance companies can be a daunting task. Decide on the level of protection you require, and keep in mind that saving money at the expense of coverage can have unintended consequences.

You should know that your old insurance company will continue to pay out a claim that was filed before you changed companies, but your new insurance company will not handle damage that occurred prior to signing the new policy.

Inquire about the average cost of car insurance
Taking a look at your area’s insurance rates can help you figure out how to save money on car insurance. Using data from the Insurance Information Institute (III) for 2018, the national average car insurance premium was $1,056.55.
Low-cost car insurance can be obtained by negotiating with your agent and asking for a lower premium.

You can select a level of coverage that best suits your needs.
You should be able to see your current coverage options on your insurance declarations page, but there are a few other things to keep in mind if you decide to switch providers:

Check to see if you can get a lower rate with a new provider when you add on the same types of auto insurance as you had with your previous policy. In addition to liability coverage, this could include gap insurance and uninsured motorist coverage.
Dropping comprehensive and collision coverage is an option if your car has reached the end of its useful life and it is no longer worth the extra money. Consider removing some add-ons at this point.
Is there a benefit to having insurance? Choosing a less expensive policy may save you money in the short term, but if you find yourself in a situation where you are not fully protected, it may end up costing you more in the long run than if you had stayed with your previous provider.
Find A Service Provider That Fits Your Driving Style
A new car insurance policy might be necessary if your driving habits have changed over the years.

You may have recently relocated to a city where public transportation is first-rate. Consider a pay-as-you-drive insurance policy instead of overpaying for a policy that treats you like a normal driver.

You need to figure out how much car insurance you need, and then figure out how to get it.

When Is It Best to Stay with My Car Insurance Company?
Even if switching service providers saves you money, there are times when staying put is the best course of action.

Staying with the same auto insurer and not seeing your insurance rates rise as a result of an accident is a good reason to do business with them again. To qualify for accident forgiveness insurance, you must have a clean driving history for at least a few years.
There is a discount available to you if you meet the following criteria. If you’re eligible for a loyalty or good driver discount, it may be worthwhile to stay with the company.
You have multiple policies with one provider: One common discount offered by insurance companies is rewarding customers for bundling policies such as auto and renters insurance. If you have a few policies with your insurer, canceling your auto policy alone could increase your monthly bill.
Our Recommendations For Car Insurance
If you’re wondering how to switch car insurance, research companies and carefully compare quotes. Two standout options are Geico and Progressive, and we’d recommend you consider both for affordable rates and excellent coverage.

Geico: Best Overall
Geico offers exceptional coverage for most drivers at relatively cheap car insurance rates, earning it 4.6 out of 5.0 stars in our review of the best car insurance providers. With the company’s A++ rating for financial strength from AM Best, drivers can be confident that their coverage is secure with Geico.

Geico holds an A+ rating from the BBB and offers discounts for military members, federal employees, and cars with extra safety features. Learn more by reading our complete Geico auto insurance review.

Progressive: Best For High-Risk Drivers
As the third-largest car insurance company in the country and with coverage available in all 50 states, Progressive is a solid choice if you have a less-than-perfect driving record.

Customers are eligible for small-accident forgiveness immediately and get large-accident forgiveness after five years of accident-free driving. See our Progressive car insurance review for more details on how to save with the provider.