Most people stick with the same car insurance company for years without thinking much about it. But the truth is, you do not have to. Car insurance rates are climbing across the country, and you might be paying more than you should. Changing your car insurance at the right time and in the right way can save you hundreds of dollars every year.
When is the best time to change car insurance?
There is no single “perfect” time to switch, but there are situations where it makes the most sense. Some of the most common times include:
- When your premium goes up: If your insurer raises your rates, it is worth shopping around to see if another company can give you the same coverage for less.
- When your policy is up for renewal: This is the easiest time to switch since you will not risk cancellation fees.
- After a major life change: Moving to a new state, buying a new car, getting married, or even adding a teen driver can all affect your insurance needs.
- If you are unhappy with your service: Delays, poor customer support, or bad claim experiences are all good reasons to look elsewhere.
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Can you switch car insurance mid policy?
Yes, you can. You do not have to wait until your renewal date to change insurers. Most companies allow you to cancel anytime, though you may face a small cancellation fee. Before you switch, read the fine print of your current policy so you know exactly what to expect.
If you paid your premium upfront, you may also qualify for a refund of the unused portion once you cancel. That refund can help offset your first payment with the new company.
How to shop for a new car insurance policy
Switching car insurance starts with research. Here are a few steps that can make the process easier for you:
- Get multiple quotes: Compare at least three different companies. Make sure you request the same level of coverage you already have so you are comparing fairly.
- Use online comparison tools: Sites like The Zebra, QuoteWizard, or CarInsurance.com allow you to enter your details once and view rates from multiple insurers.
- Check future scenarios: If you plan to add a car or drop coverage soon, see how those changes affect the quote.
- Ask about discounts: Many insurers offer savings for good students, safe drivers, military families, or even people who take defensive driving courses.
How to avoid coverage gaps when switching
One big mistake people make when they are changing insurance is to allow for an empty gap between coverage periods. Even one day without coverage can be used later on to increase your rates. To avoid this:
- Do not cancel your current policy until your new one is active.
- Line up the start date of your new policy with the end date of your old one.
- Get written confirmation from your new insurer before contacting your current one to cancel.
This way, you stay covered without paying for overlapping policies.
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What fees or refunds should you expect?
Before you switch, always check:
- Cancellation fees: Some insurers charge $25–$50 if you cancel early.
- Refunds: If you prepaid your premium, you should get money back for unused months.
- Automatic renewals: If your old policy is set to renew automatically, make sure you turn that off to avoid double billing.
These small details can make a big difference in how much you really save by switching.
How to lower your new car insurance rate
Once you have already switched, you can do a few things to keep your cost low:
- Put a high deductible: Generally, the higher the deductible, the lower the monthly premium.
- Cut unnecessary coverage: If your car is old and not worth much, pare down collision or comprehensive coverage.
- Given that you do not drive much, pay-as-you-drive plans should be worth considering: Some companies, such as Allstate, offer mileage-based insurance.
- Grab all the discounts that you can: Safe-driving programs, bundle discounts for home and auto insurance items, every little bit counts.
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