+120 more)
)
Lindsay Frankel is a personal finance and insurance writer who’s been writing for Compare.com since 2023. Her work has been featured in publications such as Investopedia, LendingTree, The Balance, SFGate, Bankrate, and FinanceBuzz.
)
)
Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
)
)
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John Leach is a licensed insurance agent who reviews and fact-checks articles for Compare.com. John has several years of experience reviewing and editing various insurance topics, and he also holds a valid personal lines producer license from the California Department of Insurance (NPN #20461358).
Updated
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
You may want to switch car insurance companies if your premium is too high, you’re unhappy with your current insurer’s claims handling or customer service, or you’re moving to a new address.
It’s typically easy to change car insurance companies at any time, with a few exceptions. Most major auto insurance companies make the process smooth and painless.
We’ll walk you through the process step by step to ensure you avoid unnecessary fees and coverage gaps and comply with legal requirements. Here’s what you need to know to find the best new auto insurance policy at the lowest premium.
If you decide to switch car insurance companies, make sure your new policy is effective before canceling your old one to avoid a lapse in insurance.
When choosing a new car insurance company, compare coverage details and consider more than just price.
You can change auto insurance companies at any time, but it’s often best to do so shortly before your renewal date to avoid a possible penalty or early cancellation fee.
Before shopping for a new car insurance policy, you should review your existing policy so you can make an apples-to-apples comparison with other insurers. This can help you save money without losing protection.
Make sure to take note of the following details from your policy declarations page:[1]
Vehicle info and VIN (if insuring the same vehicle)
Current premium and policy period
Current coverages and limits
Policy expiration date
Each auto insurer calculates premiums differently, so comparing quotes can help you save money on car insurance. But it’s important to consider more than just cost. It’s also important that the company you choose meets your coverage needs and has a good reputation for paying claims.
Plus, some car insurance companies offer discount opportunities that you won’t see reflected in your quote.
You can compare car insurance quotes online, with the help of an agent or broker, or through an online comparison site.[2] Make sure you enter the same coverage and deductible information for each quote to get an accurate, apples-to-apples comparison.
Online comparison sites allow you to enter a few details and get quotes from multiple auto insurers. This saves time and can be very convenient, but you should be aware of a few limitations.
Comparison sites don’t list every insurer, so you may not see quotes from some local or specialty insurance companies. You may also need to verify your coverage details with the insurance company you select before finalizing your quote. Sharing your contact information could also lead to unwanted spam if you’re using a lead generation site.
While some comparison tools are like the online equivalent of an insurance agent providing a few different options, others are lead generation sites that sell your personal data. It’s best to avoid lead generation sites.
The cheapest car insurance company isn’t always the best insurer for your coverage needs. A cheap premium isn’t worth it if an insurer can’t provide the coverage you need or won’t have your back when it comes time to pay a claim.
You should also consider the following factors when comparing quotes online:
Coverage choices: Make sure you can get the coverage you need, such as full glass coverage for mountain roads or gap coverage for a new vehicle.
Claims process: Check the ease of claims filing and the insurer’s claims handling reputation and speed.
Customer satisfaction: Read customer reviews on third-party sites like Trustpilot and check the company’s complaint rating with the National Association of Insurance Commissioners.
Financial strength: Make sure the insurer has a solid financial strength grade with AM Best.[3]
Digital tools: If mobile app claims, live chat support, and telematics savings programs are important to you, check whether the company offers them.
Compare personalized quotes from dozens of top insurance companies.
)
When choosing a new car insurance policy, you should pick the insurer with the lowest car insurance premium that still checks all of the following boxes:
Meets minimum requirements: At a minimum, the policy meets state minimum car insurance requirements and your lender’s or lessor’s requirements. Most states require liability insurance, and you’ll likely need full-coverage insurance if you finance or lease your vehicle.[4]
Meets your unique needs: The policy includes optional coverages tailored to your specific needs. For example, if you drive for Uber or Lyft, you’ll need rideshare coverage to avoid coverage gaps.[5] You should also consider buying liability coverage limits above the state minimum. Most experts recommend buying enough coverage to protect your assets.[6]
The company is reputable: The car insurance company needs to have a license to sell coverage in your state. You should also check whether it has strong financial performance and high customer satisfaction ratings.
Before finalizing your purchase, you should review the information you’ve provided. It’s particularly important to confirm that your new policy’s start date precedes your current policy’s expiration date. This will help you avoid a lapse in insurance coverage.
It’s also a good idea to double-check that you’ve correctly entered your VIN and vehicle details. Lastly, review your coverage limits, deductible, and endorsements to ensure your policy provides all the coverage you need.
Reach out to an insurance agent if you have any questions or if your final premium varies from your initial quote.
It’s important to wait until your new policy is active before you cancel your old insurance policy in order to avoid a lapse in coverage.
Driving without car insurance can have serious consequences. If you get in an accident, you can be liable for damages, face fines, or serve jail time. When you buy a new policy after a lapse, you could face increased insurance rates.[7] In some states, an insurance lapse could result in reinstatement fees or license or registration suspension.[8]
Before canceling your old policy, confirm your coverage details and limits to ensure continued protection. If you paid your premium in full, read the “cancellation” or “termination” section of your policy contract to find out how refunds are calculated.
You can cancel your car insurance at any time, but it’s often easiest to cancel near your policy renewal date to avoid potential early cancellation fees or penalties, especially if you paid your premium in advance. Whether you’re subject to fees or penalties will depend on your insurance contract and state law.
If your insurer issues a pro-rata refund, you’ll receive a refund proportional to the remaining days in the policy term. But if your insurer uses the short-rate cancellation method, you may have a refund reduced by a penalty amount. You may also pay a flat early cancellation fee.[9]
Still, it might make sense to switch midway through the term if you’re saving money on the new policy.
In some cases, you may want to completely cancel and switch your auto insurer on the same day. This is possible from some insurers, but it’s important to secure same-day coverage from your new insurer before canceling your old policy.
The most important step is to make sure your new policy is effective before you cancel your old policy or it expires.
)
If you lease or finance your vehicle, the lender or lessor has a stake in your vehicle’s value. They want to ensure you can still repay your loan or cover repairs if an accident damages or destroys your car.[10]
Your loan or lease agreement likely requires continuous insurance coverage, so you must notify your lender or leasing company when you change insurance companies. If your insurance lapses, the lender or lessor can buy forced-place insurance and charge you for it.[11] You can typically submit your declarations page as proof of insurance coverage online or by fax, phone, or mail.
New cars depreciate quickly. If your car is worth less than your remaining loan balance, you may want to purchase gap coverage. This insurance helps cover the difference if you total your car and prevents you from owing money out of pocket.
Next, update your records with your new insurance information. Refer to the checklist below as a reminder of what to include in your records:
Replace your proof of insurance card in your vehicle
Download your new insurer’s mobile app to display your digital ID card
Update insurance info with the DMV if state law requires you to
Provide your new insurance card to your employer and update your info on your HR platform
Update your landlord or condo association if necessary
Provide copies of insurance documents to additional insureds
Anyone with a vested interest in your current coverage information will need your policy number for legal and practical reasons. For example, your employer may need access to your insurance information if you ever drive your personal vehicle for work-related tasks.[12]
It depends on your state’s registration rules. In most states, your new company will notify the DMV of your insurance coverage information automatically. But you should check your state DMV website. While laws vary by state, the following situations may require an in-person visit to your local DMV office:
Moving from a different state
Registering a new vehicle
Renewing your vehicle registration after a recent insurance change
Switching car insurance companies may be worth it if you can cut costs, get better coverage, or improve your customer service experience.
Here are several circumstances that may make you want to change auto insurance companies:
Major life events, like relocation, marriage, or adding a teen driver
Life changes that alter your coverage needs, like starting to work from home
Bad customer service or a poor claims experience with your insurer
You need more coverage options or endorsements
You experienced rate hikes at your existing insurer
Can access cheaper premiums elsewhere
Take advantage of a bundling discount if you just bought a homeowners policy
The best time to switch car insurance companies is before your policy renewal date to avoid early cancellation fees or penalties. That said, you should weigh the premium savings from making a mid-term switch against any fees or a lost refund.
Some insurers make it easy to switch at any time. For example, you can cancel a GEICO policy without fees or penalties in most states.[13]
See quotes from top insurers in minutes.
The following information can help answer your remaining questions about switching car insurance companies.
Switching car insurance companies is typically a simple process. You’ll need to review your current coverage info and policy expiration date to make sure to buy a new auto policy before canceling the old one to avoid an insurance lapse. Notify your lender or lessor and local DMV office if necessary.
Yes. You’ll need to notify your existing insurance company of your decision to switch. If you don’t, your old policy may auto-renew, and your old insurer may bill you for continued coverage.
Yes. You can typically switch auto insurance companies at any time, but you should read your policy documents carefully to find out how your insurer handles refunds and cancellation fees if you cancel in the middle of the policy term.
No. It’s typically easy to switch car insurance companies, especially if you work with one of the major national car insurance companies and you switch close to your policy renewal date.
Sometimes. It depends on the insurer and your state. Your policy documents will clearly outline if your insurance company charges a short-rate penalty or a flat fee for early cancellation.
)
)
)
)
)
)
)
)
)
Lindsay Frankel is a personal finance and insurance writer who’s been writing for Compare.com since 2023. Her work has been featured in publications such as Investopedia, LendingTree, The Balance, SFGate, Bankrate, and FinanceBuzz.
Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John Leach is a licensed insurance agent who reviews and fact-checks articles for Compare.com. John has several years of experience reviewing and editing various insurance topics, and he also holds a valid personal lines producer license from the California Department of Insurance (NPN #20461358).
