If your current auto insurance policy is draining your wallet, it’s probably time to change providers. While finding new car insurance can seem daunting, doing your research helps the process go smoothly. Learn how to compare insurance rates and switch your car insurance so you can hit the road with a new policy and start saving on your premiums.
Key Takeaways
- Life changes like moving, buying a new car, or adding a teen driver are great reasons to switch your insurance company.
- Find a new car insurance policy by researching policies, comparing quotes, and reading customer reviews.
- When switching auto insurance, start your new policy before your old one officially ends to avoid coverage lapses, check for early cancellation fees, and make sure your new policy meets all state and lender requirements.
When to Switch Your Car Insurance Provider
It might be time to compare car insurance rates and look for a new insurance policy if you don’t feel like your current provider is a good fit. Below are some good signs that a new policy might be a better option:
- You think you could get a better deal. If your rates feel high or you just haven’t explored options in a while, it’s a good time to compare auto insurance rates offered by several providers.
- You had a negative claims experience. If your insurance rates skyrocketed after you made a claim, you’re probably dissatisfied with your current provider and looking to switch.
- Your policy is up for renewal. Canceling your contract and starting a new policy on your renewal date is the best way to sidestep cancellation fees. Just make sure you don’t have any lapses in coverage, as this can increase future premiums and leave you vulnerable financially.
- You’re moving to a new area. Factors such as your city, state, and zip code all affect your car insurance premium. Different car insurance companies may offer more competitive rates in your new location, and you might have to switch carriers if your current provider doesn’t cover that area.
- You’re retiring or working from home. Many workers have bid farewell to their commutes and started working from home full time. If you’re driving fewer miles, you might find a cheaper premium with a pay-per-mile insurance policy.
- You’re buying a new vehicle. You might be looking for more comprehensive coverage for your new car than what your current provider offers. For example, some options like gap coverage are only offered by certain carriers.
- You’re getting married. Many companies offer discounts to couples who insure multiple cars under one policy. If your insurance provider differs from your spouse’s, it might be time to shop around for a better deal.
- You’re adding a teenage driver to your policy. You might see your premium spike after your teenager gets their license. Comparing auto insurance rates can help you decide if another company offers cheaper coverage for teen drivers.
How to Compare Auto Insurance Rates
Insurance rates vary widely depending on the company, your driving history, and much more. That’s why it’s important to compare auto insurance rates from at least three carriers before committing to a policy. Many drivers save on insurance simply by shopping around and doing their research.
When you compare auto insurance rates, consider coverage levels and deductibles, payment options, and brand quality. Some insurers might seem cheaper, but they may offer less protection or higher out-of-pocket costs. Look for companies that offer discounts for safe driving, bundling policies, or low mileage.
Tick all your boxes before switching insurance companies to make sure you’re getting the best deal and the coverage you need from a car insurance company you can trust by considering these factors:
Determine Your Car Insurance Needs
The first step in comparing car insurance companies is thinking through a few details. Consider these questions before gathering and comparing auto insurance rates and quotes:
- What’s your budget for car insurance? How much can you spend on it every month?
- What sort of payment options do you need? Are you looking for automatic deductions from your bank account or credit card billing? Make sure the companies you’re considering offer the pay options you want.
- How often do you want to pay? If you can afford it, will you be paying for the entire policy every six months, rather than monthly? (This will usually save you some money.)
- What about the deductible? You’ll save money on your premiums if you go with a higher deductible. On the other hand, you can spend more on your premiums and receive a lower deductible.
- How much protection do you need? Predicting what kind of car accident may happen is not possible. However, it’s always wise to buy more than the minimum amount of insurance required, because the minimums may not pay all of the bills when a serious collision occurs. That means the people in the other car can go after your financial assets, including your home, in a personal injury lawsuit.
- How do you want to manage your policy? If it’s important to you to manage your policy via a mobile app, over the phone, or in person, make sure the insurance company offers those options.
Knowing some of these must-haves and limitations will help you narrow down car insurance companies more quickly.
Learn How Car Insurance Rates Are Calculated
Here are common factors that impact your auto insurance premiums:
- Location. Your city, state, and zip code can affect your rate. Urban areas with more traffic and higher crime rates typically mean higher premiums.
- Driving record. If you’ve had accidents, traffic violations, or insurance claims in the past few years, most insurance companies will charge you higher premiums.
- Vehicle type and value. The make and model of your vehicle help determine your premium. Vehicles that cost more to repair or replace often come with higher insurance costs.
- Age and experience. Younger drivers, especially teens, tend to have higher rates due to a lack of driving history. If you’re adding a teenage driver to your policy, comparing quotes from different providers can help you find more affordable options.
- Annual mileage. If you’re working from home or no longer commuting regularly, you might qualify for a low-mileage discount. Pay-per-mile policies can offer significant savings for drivers who don’t hit the road often.
Know Your State Minimums
In most states, you’ll need a minimum amount of liability insurance before you can operate your car. You may also be required to carry minimum Uninsured and/or Underinsured Motorist Coverage. If you live in a no-fault state, you will be required to carry a minimum amount of personal injury protection. No-fault means that if you are in a minor car accident and don’t suffer serious injuries, your insurer will pay for medical expenses, lost wages, and property damage to the vehicle. The system is called no-fault because it doesn’t matter which driver caused the accident.
Different states have different options when it comes to car insurance. That’s why it’s important to find out your state’s requirements (available here) and the various types of car insurance choices you have.
If you are subject to certain circumstances, such as the need to file an SR-22 form with your state’s motor vehicle department to show proof of insurance, take those into account as well.
Check Lease and Loan Requirements
If you lease your car or still owe money on an auto loan, it’s almost certain that the leasing company or the lender will require you to carry collision and comprehensive insurance. If you lease your car, you will most likely be required to carry higher limits of liability as well. Since they own part of the car, they must protect their investment in case of an accident.
Check If the Car Insurance Company Sounds Familiar
There are some car insurance companies whose names you’ll recognize right away. You’ve seen their ads on TV or online. Perhaps celebrities – like Shaquille O’Neal for The General – act as spokespeople. On the other hand, if you’ve never heard of the car insurance company offering quotes, that’s a red flag. You want an insurance company with a strong track record, rather than one that may not be there when needed.
Affordability is a big concern. Going with the absolute cheapest company, though, may not prove the best idea. Insurance companies work on trust. You need to know they have your back at a difficult time. If the company has little history, but it’s cheap, that trust element is lacking. Avoid putting your hard-earned money into an unknown insurance company, because you don’t want to find out the hard way that your trust was misplaced. You only find out how reliable an insurance company is when you need them.
For more than 50 years, The General has been there for our customers. Our track record is second to none. We’re one of the most familiar, and recognizable, car insurance companies in the country. Ask friends and family if they’ve heard of The General, and the answer is certainly “yes.”
Read the Reviews
Online reviews give you a good idea of how an insurance company operates when a customer files a claim. Unhappy customers more often post reviews than those who were satisfied with the service, but if you see a pattern in the kind of negative reviews found online, that’s a company you would probably not want to provide you with coverage.
You can find all sorts of valuable information in reviews. For example, someone might praise or condemn a company’s mobile app. The General has one of the best mobile apps in the business, and users frequently comment on how easy it is to manage their car insurance policies with it.
The good reviews might include how well a car accident claim was handled. That’s the sort of information you’re looking for. After a car accident, you want to know that you’re dealing with professionals with your best interests in mind!
Things to Consider Before Switching Car Insurance Companies
You’ve made your comparisons, and you’re almost ready to make the switch. There are just a few things to consider first:
Check for Penalties and Fees Before Cancelling
If you decide to change insurance, check with your current carrier to see if canceling before the end of your coverage period will result in penalties. Before you terminate your insurance, call a customer service representative to ask about their cancellation policy. If switching policies will result in a large cancellation fee, you might need to wait until your coverage has ended before changing. However, if you find an affordable policy that makes up for the cost of the cancellation fee, it might be a good idea to change anyway.
Avoid Lapses in Coverage
Canceling your coverage before your new policy begins could result in a lapse in coverage. While temporary, lapses in coverage are dangerous and can lead to financial loss. Should you get into an accident while driving without insurance, you would be responsible for any damage you incur. Many states have made it illegal to drive without insurance, so a lapse in coverage could result in legal consequences. In addition, lapses in coverage can lead to higher car insurance rates in the future. To be safe, find out if your new policy goes into effect before you cancel your old policy. Ask your provider for a cancellation confirmation so your coverage doesn’t automatically renew.
How to Switch Car Insurance Companies: Step-by-Step
Knowing how to change car insurance the right way can save time, money, and hassles. When you’re ready to switch your car insurance carrier, follow these steps:
- Choose your insurance company. Shop around, compare quotes, ask about discounts to find a cheap rate, and make sure to choose an insurance company you can trust.
- Check for fees and penalties. Some insurance companies charge a fee for switching before your policy renewal date. Read the fine print before changing to consider all your options.
- Purchase your new policy. Prevent lapses in coverage, which can increase your insurance premiums, by scheduling your new policy to start at least one day before your current policy expires.
- Cancel your old policy. Inform your old insurer about your cancellation and get confirmation of your cancellation date. Ask about refunds if you’re changing mid-policy to a new insurer.
- Provide your lender with proof of insurance. If you’re financing a vehicle, your lender may require a certain level of insurance coverage as part of your agreement. Inform them that your insurance has changed and provide the necessary documents to avoid any breaches in your contract.
Switching to The General Car Insurance
At The General, we take pride in giving our customers quick online insurance quotes. You’re usually less than two minutes away from receiving your quote, whether on the phone or online. Yes, it is that easy, that fast, and completely free.
Even better, you’ll likely discover The General offers competitive rates for car insurance. We work hard to get you the best policy fitting your budget. Our goal is always to meet our customer’s individual coverage needs!
If you’re looking to switch to a new insurance company, The General has a policy for you. We’ve been offering affordable rates and quality coverage for over 50 years. Everyone is welcome at The General, even drivers with imperfect credit and driving records. Read some of our five-star reviews to see how we put our customers first, or read more about insurance on our blog. If you’re ready to compare or switch your auto insurance coverage, get your quote now.
