How to Switch Car Insurance Companies in 5 Steps and Save Up to 52%

Switching saves money while keeping your coverage active. Here are answers to common questions about switching car insurance:

1. Can you switch car insurance any time? Yes, you can cancel and switch at any time. Insurers provide a prorated refund for unused coverage.
2. Why should you switch car insurance companies? Most drivers switch to save money. Our analysis shows savings up to 52%. Other drivers want better claims service or mobile app features.
3. Is it fast and easy to switch car insurance companies? Yes, switching takes as little as an hour when you have your vehicle details and VIN ready.
4. Can you switch car insurance after a ticket or accident? Yes, but the accident or violation will appear on your driving record and affect rates at any insurer. Your current insurer continues handling any open claims even after you switch. See our guide to switching companies after an accident.
5. How often should you switch car insurance companies? Compare rates annually at renewal, but only switch for meaningful savings.
6. Will your rates go up when you switch? No. Insurers can't penalize you for leaving. Your new company bases rates on your driving record, not switching history, and your claims history transfers automatically.
7. Will you lose coverage when you switch? No, as long as you follow the correct process. Buy your new policy first, confirm the start date, then cancel your old policy.
8. How long does it take to get your refund? Insurance companies issue refunds within two to four weeks via check or direct deposit to your original payment method.

Comparing quotes from multiple providers saves you money on auto insurance. Get quotes with equal coverage from three to five companies. Check our ranking of the cheapest full coverage and cheapest liability-only options. USAA offers even cheaper rates but is available only to military members, veterans and their families.

You can get quotes three ways. Direct carrier quotes provide the most accurate, binding rate but require you to enter data multiple times into different portals. Comparison calculator tools offer quick results and a broad range of quotes but produce estimated, non-binding rates. Independent agents give personalized service and access to regional carriers, though they may steer you toward carriers that offer higher commissions.

Price matters, but it's not the only factor when choosing car insurance. If you value customer service during claims, MoneyGeek ranked the best auto insurance companies offering a balance of quality service and affordability.

*According to MoneyGeek's 2025 analysis of standard driver profiles, these rates are national averages. USAA offers even cheaper rates, but it's available only to military members, veterans and their families.

Before switching, review your current policy to understand what coverage you have. Decide if you want to keep the same liability limits, deductibles, and optional coverages, or if you want to adjust them with your new provider.

Switching is a good time to evaluate if your coverage still fits your needs. If your car has depreciated significantly, you might drop comprehensive and collision coverage. If you've accumulated more assets, you might increase your liability limits beyond state minimums. Your new insurer can help you compare options during the quote process.

Switching at renewal avoids cancellation fees since your policy ends naturally. You may qualify for fee waivers in cases like deployment, job loss or moving to another state.

State consumer protection laws sometimes override standard insurer fees. Check your state's rules because some ban fees altogether. California's consumer protection laws eliminate penalties for mid-term cancellation, so residents can switch at any time.

Buy your new policy before canceling the old one. You can switch car insurance in less than a day or even within hours, as most insurers provide immediate coverage and digital proof of insurance. Make sure there's no gap in coverage when switching providers.

1. Confirm the start date and time of your new policy
2. Request digital confirmation before canceling your old coverage
3. Ensure the new policy matches or exceeds your current coverage
4. Double-check that all drivers and vehicles are listed
5. Verify your payment method is correct to avoid payment issues

Contact your old insurer to cancel when your new policy is active. You can cancel by phone, through your insurer's app, or via your agent.

How Refunds Work

Insurers calculate your refund based on unused days in your policy term. If you cancel a six-month policy worth $600 after three months, you'll receive about $300 back.

What if You Owe Money?

If you're on a payment plan and haven't paid for the full term, your insurer deducts what you owe from your refund. Sometimes you owe money rather than receive a refund. Your insurer sends a bill for any remaining balance.

Notify Your Lender or Lienholder

If you finance or lease your vehicle, send your new insurance declarations page to your lender right away. Loan agreements require notification within 14 to 30 days. Missing this deadline triggers force-placed insurance, which costs two to ten times more than standard coverage and provides only basic protection.

While switching saves money, there are situations when you should wait:

1. Open claims: Wait until at-fault claims are resolved before switching. Your current insurer continues handling the claim, but a new company can factor pending claims into your rate.
2. High cancellation fees: Some insurers charge penalties that eliminate any savings from switching. Wait until policy renewal instead.
3. No confirmed policy: Never cancel current coverage without buying the new policy first.

Switching car insurance takes less than an hour and saves you up to 52% on premiums. Compare quotes, buy your new policy with a confirmed start date, then cancel your old coverage to avoid any gap.

Switch when your policy renews, you move, add drivers or buy a new car. Compare both price and service quality when shopping around. If you finance your car, notify your lender about the change within 14 to 30 days. You can complete the entire switch the same day when you have all your information ready.

We answer common questions about switching car insurance companies.