Switching auto insurance companies is easy, but if you’re comparing prices make sure the coverages, limits, and deductibles on your new policy match what you have on your existing insurance policy. While your rate could be lower when quoting with a new auto insurance company, the protection and claims service they offer may differ from your current insurer’s services. Evaluating car insurance providers is crucial to ensure you get the best coverage and service. If you decide to change car insurance companies, make sure your new policy is in force before canceling your old policy. Be extra careful to avoid a gap or lapse in your coverage. And when your new policy is active remember to cancel your previous policy.

We hope this blog post will make switching car insurance feel a little less overwhelming. We’ll discuss how simple switching car insurance companies is (we promise it’s easier and faster than you might think) and share when a switch makes good sense. We’ll also throw in some tips on discounts and bundling, because who couldn’t use a few extra savings these days? So, let’s get started!

Reasons to switch car insurance companies

You could save money.

Car insurance costs increased over 12% in November 2024 compared to November 2023, according to the Consumer Price Index. When your insurance premium increases significantly at renewal time or starts to become unaffordable, it may be a good time to check your rates.

You could get coverage that better meets your needs.

When you’re paying for coverage, you want to make sure it’s working for you in the best way possible – the right deductible, the right medical coverage, and the right policy for the car you drive. You might want to even think about how your pet is protected. That’s why Elephant created our Coverage Wizard.

Simply answer a few questions and we’ll provide you with a better understanding of some of our most common coverages—and which options are most useful to you and your lifestyle. For instance, if you have roadside assistance with AAA, you likely don’t need this coverage from your car insurance company. Why pay for the same thing twice?

The best part? You don’t have to give us any personal information or make any commitments to use the Coverage Wizard. We simply want to share our knowledge with you!

You could get a better service experience.

We’ve all been on the other side of a frustrating customer service situation. If lately you’ve been feeling like you’re not getting responses quickly enough, or your questions are not being answered by your current provider, it might be time to consider making a switch.

You’ve experienced a major life event.

An increase in your car insurance price is the most likely reason you’d be looking to switch car insurance companies, and there are many reasons car insurance rates can fluctuate—such as a change in vehicles or location. Major life events like these can impact the cost and coverage needed on an auto insurance policy. If you need to update your car insurance policy to include new life changes, or recent changes have increased the cost of your current plan, now is a good time to shop around for better prices.

Understanding your current policy

Switching car insurance companies can be a smart move, but before you make the leap, it’s crucial to understand your current policy. This will help you identify what you have, what you need, and where you can make improvements. Let’s dive into the details.

Review your current policy and coverage

Before you switch car insurance companies, take a close look at your current policy. Understanding your existing coverage will give you a clear picture of what you might want to keep or change. Here are some key aspects to review:

  • Coverage limits and deductibles: Know the maximum amount your insurance will pay for a covered loss and what you’ll need to pay out of pocket.
  • Types of coverage: Check if you have liability, collision, comprehensive, and other types of coverage.
  • Exclusions and limitations: Be aware of what is not covered by your policy.
  • Premium costs and payment terms: Understand how much you’re paying and the terms of your payments.
  • Discounts and incentives: Note any discounts you’re currently receiving.

By reviewing these elements, you’ll be better equipped to identify areas where you can improve or adjust your coverage to better suit your needs.

Evaluate your car insurance needs

Your car insurance needs may have evolved since you first purchased your policy. It’s important to reassess your situation to ensure your coverage is still adequate. Consider the following:

  • New location: Have you moved to an area with different insurance requirements?
  • New vehicle or driver: Have you bought a new car or added a new driver to your policy?
  • Change in financial situation: Has your income or financial situation changed?
  • New assets or liabilities: Do you have new assets or liabilities that need protection?

By evaluating these factors, you can determine if your current policy still meets your needs or if adjustments are necessary.

Getting started with finding a new car insurance provider

Once you’re ready to make the switch, there are a few things you’ll want to do to get started finding a new provider that’s right for you.

Evaluating car insurance providers is crucial to ensure you get the best coverage and potential savings.

Get multiple car insurance quotes.

Whether it’s directly getting in touch with your insurer or checking out quote comparison sites like The Zebra, Insurify, or Compare, it’s never been easier to find out how much you can save per month on premiums for auto insurance. Take advantage of these sources so you can find the plan and the provider that is best for you before switching car insurance companies.

Ask around.

Odds are that you have a friend whose car insurance company is the one you’re considering. Be mindful of what they’re spending in premiums, but don’t be shy about asking for their opinion, what services are offered, and if they’ve ever had to file a claim. Make sure you check out professional resources like the Trustpilot, Better Business Bureau and Consumer Reports for additional guidance.

Research.

Get familiar with what your coverage needs are and ask yourself if this new company offers what you need. You might also want to connect with your current provider to see if there are any fees to consider and make sure your current car insurance discounts will transfer to a new provider.

Switching car insurance companies: how and when

Make sure your new policy is up and running.

First things first, before you cancel your existing car insurance policy, you will want to verify with your new car insurance company that your new policy is approved, active, and what your effective date is. Knowing the effective date before switching car insurance companies will help ensure you’re not paying twice for the same thing (no one wants to do that!) and guarantees you won’t have a gap or a lapse in coverage.

Cancel your old car insurance policy.

Once you’ve verified that your new policy is active, call your old insurance company. If you’re feeling nervous about the call, try to remember your provider won’t take this personally—people change auto insurance policies all the time, it’s just how the industry works.

Once you get someone on the line, no matter what the reason is that you’re switching auto insurance companies, be professional and clearly state that you want to cancel your policy. Don’t forget this step—you don’t want the company to cancel your old policy for non-payment, which could lead to you getting reported to a credit agency. Do what you need to cancel and document the effective cancellation date.

Avoid gaps in coverage

When switching car insurance companies, it’s crucial to avoid any gaps in coverage. A lapse in coverage can leave you financially vulnerable in the event of an accident. Here’s how to ensure continuous protection:

  • Start your new policy before ending the old one: Make sure your new policy is active before you cancel your old one.
  • Coordinate with your new insurance provider: Work with your new provider to ensure a smooth transition.
  • Keep proof of insurance handy: Have your new insurance documents readily available during the switch.

By following these steps, you can maintain continuous coverage and avoid potential financial risks.

Ask about a refund.

If you switch auto insurance policies at the end of your current policy’s term, you might not be eligible for a refund. However, if you paid in full or there are several weeks/months left before your next scheduled payment, you should ask for a refund.

If needed, notify your DMV or lender of the change.

It depends on where you live or what your situation is, but you may need to notify a few other important people regarding your recent auto insurance change. Your state’s department of motor vehicles (DMV) may require that you notify them of any changes to your insurance coverage. Also, if you’re still making payments on your vehicle, your lender will want to know about your new auto insurance policy.

When to switch car insurance.

As we mentioned earlier, you don’t have to wait to change auto insurance providers until your current policy expires. You can start researching, talking to friends, and getting quotes anytime. Any of the big life events we mentioned earlier can be a good time change your auto insurance policy, too.

Tips for saving on your new auto insurance plan

Discounts, discounts, discounts.

Check with your new provider about auto insurance discounts you might qualify for, from responsible driving to going paperless with your account. Some insurers like Elephant Insurance even offer a discount for signing up for before your current policy expires or auto renews, it’s called the Early Bird Discount.

Bundling.

Bundling multiple types of insurance into one policy is one of the easiest and most guaranteed ways to save big on your insurance. One common insurance bundle is homeowners or renters with your auto insurance, but you might want to consider bunding other policies too like life insurance. You can also save by having multiple cars on the same policy, what we call a multi-car discount.

Common mistakes to avoid

Switching car insurance companies can be straightforward, but there are common pitfalls to watch out for. Here are some mistakes to avoid:

  • Not researching and comparing quotes: Always compare quotes from multiple insurance providers to find the best deal.
  • Not reviewing policy terms and conditions: Carefully read the terms and conditions of your new policy.
  • Overlooking discounts and incentives: Make sure to ask about available discounts and incentives.
  • Not coordinating the transition: Ensure there’s no gap in coverage by coordinating with your new provider.

By being mindful of these common mistakes, you can ensure a smooth transition to your new car insurance policy.

With these steps, you’ll be well-prepared to switch car insurance companies confidently and effectively.

Feeling ready to make a change?

We hope this guide helped answer your questions about changing car insurance companies, and that you consider getting a quote switching to Elephant. We promise if you do, we’ll be here with you every step of the way with more answers and tips to provide the best coverage for your needs.

 

Article last updated on January 16th, 2025 at 2:23 pm