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Most insurance agents recommend comparing car insurance prices every six months. Why?
Two reasons. First, the majority of policies renew every six months. And second, changing life circumstances could affect your insurance rating factors, potentially qualifying you for a better deal.
Fortunately, switching car insurance providers is pretty simple. In this quick read, you’ll learn how to change insurers so you can secure the best coverage at the most affordable rate.
Many insurance companies know their customers don't want to go through the trouble of shopping for a new auto insurance policy. This is why, on average, most companies raise their rates 4-6% every year because their data shows that the threshold isn't high enough to warrant an immediate switch from their customers. Furthermore, if you've had an accident, added a driver or a car, you should expect your rates to be even higher.
Your first step in getting the best auto insurance coverage should be to see what other companies are offering.
As you start requesting car insurance quotes from other companies, it’s important to start thinking about what your current insurance policy covers and the coverage you’ll need going forward. Do you need collision, comprehensive, and uninsured/underinsured coverage? What’s your deductible? If you’ve just moved to a new state, what is the minimum level of insurance required by your state?
This information can be found on your declarations page of your current policy. You should always keep a copy of this page — also called a “dec page” — on-hand at home. More specifically, you should have your current dec page directly in front of you when requesting auto insurance quotes. If you do not have one at home, request a hard copy via your current insurer or try to access your account online.
FYI, you need'll comprehensive and collision coverage if:
Make sure your current car insurance discounts and perks will carry over to your new insurer. Telematic and bundling discounts are typically the ones that will not automatically transfer — as a discount for having a clean driving record might.
Some insurance agents advise to you call your old company before switching — which you're encouraged to do for a few reasons.
First, ask if there are any cancelation fees, especially if you are in the middle of your policy term. Next, ask for a policy review. A policy review is basically a check-up on your current plan. You can speak with a company representative who can scan the policy for any discounts you have. Also, make sure that you aren’t being charged for tickets or accidents that should have by now fallen off your record.
If you're calling to "price match" with your new provider however, you're out of luck. Because of the way insurance is regulated, car insurance companies do not negotiate — even if you've been a loyal customer for years. In the end, your current company might already be giving you every possible discount on your insurance premium. Still, it never hurts to ask.
You'll want to sign your new policy before cancelling the old one so that you avoid any lapse in your coverage. Car insurance companies look closely for lapses in coverage, and you could be penalized for even the smallest of gaps. Another important consideration: driving without car insurance in the US is illegal in almost every circumstance.
| Pros | Cons |
|---|---|
| A different carrier may offer opportunities for savings for similar coverages, allowing you to save money. | Some carriers offer loyalty discounts that you will miss out on from switching. |
| You may qualify for discounts from another carrier that your current provider does not offer. | Bundling discounts may be unavailable if you don’t switch all insurance lines over to a new carrier. |
| As premiums fluctuate by carrier each year, you might find a more affordable option at another insurance provider for the same package. | |
| Switching is easy when you shop around for a new policy with the expert licensed professionals at The Zebra. |
Yes, you can replace your car insurance provider whenever you choose. That means you could technically swap insurers on your second day of coverage or even while you have an open claim.
In addition, it’s common for drivers to switch once or twice per year. Rarely, you’ll find insurance companies that charge cancellation fees. Still, you can always ask about that before ending your policy.
The short answer is every six months. Generally, you’ll want to compare rates whenever a significant change might alter your rates. It may be a good idea to see what the market offers after you:
You can switch at any time, but it’s not always advantageous. For example, you may want to stick with your current insurer when you have:
Your insurance company may request proof that you qualify for specific discounts, such as a:
Yes, you are allowed to switch auto insurance companies with an open claim. As long as the incident occurred while you were covered by your previous insurance company, the insurer will still pay out your claim.
Insurance companies don’t penalize you for switching your car insurance with an open claim. Stay in contact with your previous insurer until the claim is settled. Keep in mind some claims can have an impact on your rates.
If you’re looking for the best car insurance rates, comparing different companies is a no-brainer. Whether you plan on switching car insurance companies mid-policy or waiting until your current policy ends, getting the best coverage doesn’t have to be complicated. When researching, make sure you look at things like customer satisfaction and J.D. Power rankings so you feel confident in your decision.
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