As your lifestyle changes, you may find that your car insurance needs also shift. You may wonder whether you can change car insurance companies at any time, even mid-policy. Switching carriers mid-policy is possible, and you may even find that you save by finding a new provider.
When switching, remember to get the coverage, limits, and deductibles that align with your needs and budget. You may find a policy at a much lower rate, but it may negatively affect you if it doesn’t provide the coverage you require.
In this blog, we’ll discuss:
- The reasons why drivers may switch car insurance companies
- Steps to keep in mind when switching, and
- Whether doing so affects your driving record
If you’re ready to compare quotes, Infinity Insurance Agency, Inc. (IIA) is here to help. IIA works with multiple insurance carriers to help drivers find an affordable option.
Why drivers might switch mid-policy
You may want to switch car insurance companies for a variety of reasons, including:
- Changes in coverage needs: If you’ve purchased a new vehicle, gotten married, or need to add a new driver to your policy, you may be looking to switch auto insurance carriers. Additionally, if you move to a different zip code, you might need to switch if a provider doesn’t offer coverage in your new location.
- Having a non-standard status: Some drivers may look for a company that offers non-standard insurance options. Non-standard insurance can be helpful for drivers considered “high risk,” including:
- New drivers
- Those with less-than-perfect driving records
- Drivers with foreign licenses
- Those with SR-22 insurance requirements.
- Finding better rates: You may find more affordable auto insurance coverage when you shop around every few years. Remember to compare similar coverage, deductibles, and limits, so that you get comparable insurance going forward. Having cheaper premiums may not be the best deal if you experience a loss that is not covered by your new policy.
- Access to new discounts: You may qualify for discounts when you switch car insurance providers. Ask an agent about available discounts available, whether you stick with the same company or switch to a new one. Some discounts include:
- Bundling multiple vehicles under one policy
- Paying for your policy up front
- Discounts for students with good academic records
- Discounts for drivers who take approved defensive driving courses
- If you’ve been a long-time customer with your current insurance company, the new company may offer you a loyalty discount when you switch
Steps to switch auto insurance mid-policy
If you’ve decided to switch insurance companies mid-policy, keep in mind the following steps:
Step 1: Shop around for the best coverage
Compare more than just the price of premiums. Check that the coverage types, limits, and deductibles align with your needs. Lower premiums may mean less coverage or higher out-of-pocket costs after a covered loss.
Each state has unique car insurance requirements, according to the Insurance Information Institute. Remember to adhere to these requirements when comparing quotes.
If you’d like to compare multiple quotes, contact IIA. We work with 20+ insurance carriers to help you choose a budget-friendly car insurance option. Call 1-855-478-3705 or get a free quote online.
Step 2: Confirm the start date of your new policy
After you’ve switched carriers, confirm the start date of your new policy. It’s crucial that you avoid lapses in coverage, even short ones. Having gaps in coverage could result in higher future premiums. Additionally, lapses in car insurance coverage are illegal in some states.
You can overlap your policies as the older one is ending to avoid coverage lapses. For example, having your insurance carrier end your old policy a day after your new one begins can help you maintain uninterrupted coverage.
Step 3: Cancel your current policy in writing
Get confirmation in writing of when your current policy ends and your new one begins. Your current insurance company may require you to submit a cancellation request in writing. Confirming the dates can help you avoid lapses in coverage.
Step 4: Check for a refund
If your old policy isn’t up for renewal yet, ask about any prorated refunds you may receive (if you paid for the policy upfront) and cancellation fees you may be charged.
Step 5: Print or save the new proof of insurance
After buying a new policy, you may receive physical proof of insurance. You can keep a copy in your vehicle since you may have to show it during a traffic inspection or after an accident. Some insurance companies now have apps where you can see and save a digital version of your proof of insurance, which you can download for easy access.
Will switching insurance carriers affect your record?
Switching insurance carriers might seem nerve-racking, but there is no need to worry. As stated above, as long as your coverage is continuous, which means you don’t have a gap in which you were uninsured, there is no negative impact on your driving record.
Final tips for a smooth transition:
- Ask about cancellation fees
- Avoid gaps in coverage
- Keep proof of insurance readily available
- Ask an agent about available discounts
Find new car insurance options with IIA
You can switch car insurance companies mid-policy, and it may be beneficial. Shopping around while keeping your coverage needs in mind may help you find cheaper premiums.
Contact IIA to compare car insurance quotes from multiple carriers. With IIA, you get:
- Help from experienced Spanish-bilingual agents
- Options for non-standard or “high-risk” drivers
- Flexible payment options
- Help finding qualifying discounts
Call IIA now at 1-855-478-3705 or get a free car insurance quote online.