How do you switch car insurance? Follow these five easy steps to switch while avoiding coverage gaps:
How to Switch Car Insurance Companies in 5 Steps and Save Up to 52%
Updated: October 13, 2025
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How to Switch Car Insurance in 5 Easy Steps
Common Car Insurance Switching Concerns Answered
Switching is easy and you can save money while keeping your coverage active. Here are answers to common questions about switching car insurance.
- Can you switch car insurance any time? Yes, you can cancel and switch your current policy at any time, and insurers provide a pro-rated refund (money back for unused time).
- Why should you switch car insurance companies? Drivers switch to save money. Our quote analysis shows savings up to 52%. Other drivers want better service or app experience:
- Is it easy to switch car insurance companies? Yes, assuming you have your vehicle details like VIN number, it can take as little as an hour to switch and set up your new policy.
- Will your rates go up when you switch? Switching providers won't increase your rates. Insurance companies can't penalize you for leaving, and your new insurer bases rates on your driving record, not your switching history. Your claims history transfers, so you don't lose your good driver status.
- Will you lose coverage when you switch? You won't lose coverage during the switch if you follow the process correctly. Buy your new policy first, confirm the start date matches your old policy's end date, then cancel.
Step 1: Research and Compare Quotes
Comparing quotes from multiple providers will save you money on auto insurance. We recommend getting quotes from three to five companies. GEICO, Travelers, State Farm, and National General offer the cheapest rates when you switch. See our ranking of the cheapest full coverage and cheapest liability-only options. USAA offers even cheaper rates, but it's available only to military members, veterans and their families.
Price matters, but it's not the only factor when choosing car insurance. If you value customer service during claims, MoneyGeek also ranked the best auto insurance companies offering a balance of quality service and affordability.
Data filtered by:Results filtered by:
Select
Age Group:Adult Drivers
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Gender:Male
| Geico | $522 | $1,179 |
| Travelers | $601 | $1,164 |
| National General | $605 | $1,340 |
| State Farm | $616 | $1,448 |
| Amica | $670 | $1,381 |
| Progressive | $802 | $1,503 |
| Nationwide | $852 | $1,526 |
| Farmers | $938 | $1,822 |
| Allstate | $971 | $1,937 |
* These rates are national averages according to MoneyGeek's 2025 analysis of standard driver profiles
Step 2: Determine How Much Coverage You Need
Figuring out how much coverage you need depends on state requirements, your vehicle's value and personal circumstances. These factors determine the coverage type and liability limits you should buy:
- 1
Choose the right liability coverage
Each state has minimum liability requirements, but these limits may not protect your assets adequately. MoneyGeek recommends 100/300/100 liability coverage for most drivers, which provides $100,000 bodily injury per person, $300,000 per accident and $100,000 property damage coverage.
Unlike comprehensive and collision coverage, liability coverage doesn't have a deductible (it provides financial protection from the first dollar of covered claims up to your policy limits).
- 2
Determine if you need full coverage (collision and comprehensive)
Before switching insurance providers, determine if you need full coverage (comprehensive and collision). While liability covers damage you cause to others, full coverage protects your own vehicle. Consider these key factors when making your decision:
- Required for financed vehicles: Lenders require full coverage for financed or leased vehicles
- Comprehensive coverage: Theft, vandalism and weather damage to your vehicle
- Collision covers: Repairs to your car after accidents regardless of fault
- Keep both coverages if: Your car is newer, valuable (worth >$3,000) or you can't afford out-of-pocket replacement
- Consider liability-only: When full coverage premiums exceed 10% of your car's value or your car is valued at less than $3,000
- 3
Evaluate your annual mileage
Many drivers overestimate their annual mileage and pay higher premiums unnecessarily. Track your actual usage through odometer readings or service records. Driving under 7,500 miles annually can qualify for low-mileage discounts up to 25%, making this a valuable area to review when switching providers.
- 4
Evaluate your deductible
Higher deductibles (the amount you pay before insurance covers the rest) lower your premiums substantially. Increasing from $500 to $1,000 can reduce premiums by 10% to 25%. The key is choosing a deductible amount you can comfortably afford to pay out-of-pocket during a claim situation.
Step 3: Check Your Current Policy's Cancellation Fees
Understanding your current insurer's cancellation policy helps you time your switch strategically and avoid unnecessary fees.
Cancellation Fees by Major Insurance Companies
Insurance Company | Fee Amount | Notes |
|---|---|---|
GEICO | 10% of unused premium | May waive for military deployment |
Progressive | $50 flat fee or 10% of remaining premium | Varies by state |
State Farm | $0 in most cases | Agent-dependent policies may vary |
Allstate | 0%-10% of remaining premium | Higher fees in certain states |
Nationwide | $0 in most cases | No fees for most policy types |
Liberty | 10%-15% of unused premium | Higher fees for short-term cancellations |
Farmers | 10% of unused premium | State regulations may limit fees |
Travelers | Minimal to no fees | Varies by policy length |
Switching at renewal avoids most cancellation fees since your policy ends naturally. You may also qualify for fee waivers in cases like deployment, job loss, or moving to another state. Some states add protections. For example, California restricts mid-term fees. Check your state’s rules, as some ban fees altogether.
Step 4: Buy Your New Policy to Prevent a Lapse in Coverage
Always switch and buy your new policy before canceling the old one. Make sure there’s no gap in coverage when switching providers:
- Confirm the start date and time of your new policy
- Request digital confirmation before canceling your old coverage
- Ensure the new policy matches or exceeds your current coverage
- Double-check that all drivers and vehicles are listed
- Verify your payment method is correct to avoid payment issues
Step 5: Cancel Your Old Policy and Notify Lender
Cancel your old policy immediately to avoid overlap. Switching doesn’t eliminate any past-due premiums or cancellation fees with your previous insurer.
Switching Car Insurance for financed or leased vehicles:
- Notification is required: Notify your lender promptly when you switch (within 14 to 30 days) to avoid force-placed insurance, which is considerably more expensive than standard policies.
- Loan requirements: Your loan agreement requires continuous insurance.
- Documentation needed: Provide your lender with proof of your new policy.
Get Car Insurance Discounts When Switching Companies
Getting available car insurance discounts will save you hundreds annually. Here's a comprehensive breakdown of major insurer discounts:
Discount Type | GEICO | Progressive | State Farm | Allstate | Average Savings |
|---|---|---|---|---|---|
Multi-policy bundle | Up to 25% | Up to 12% | Up to 17% | Up to 25% | 15-20% |
Good driver | Up to 26% | Up to 31% | Up to 15% | Up to 25% | 15-25% |
Good student | Up to 15% | Up to 20% | Up to 25% | Up to 20% | 15-20% |
Defensive driving | Up to 10% | Up to 10% | Up to 15% | Up to 10% | 5-8% |
Low mileage | Up to 18% | Up to 20% | Varies | Up to 15% | 10-15% |
Military | Up to 15% | Up to 12% | N/A | Up to 25% | 12-20% |
When to Switch Car Insurance Companies
Switching car insurance is a smart move if you want to lower your rates or get better service. Here are times when it make sense to switch car insurance:
Policy expiration
Changing providers at renewal will help avoid fees. Most insurers won't charge cancellation penalties if you switch when your current policy term ends, making this the best time to make a change.
Moving
Rates vary by location, and your insurer may not operate in your new state. Insurance companies track claims by ZIP code, so even moving just a few miles away can impact your cost.
Marriage or divorce
Married couples often qualify for discounts, and insurers usually require spouses sharing a residence to be on the same policy. A divorce often requires that you start new separate policies.
Adding a teen driver
Some insurers offer better discounts and lower car insurance rates for teens. Look for companies that provide good student discounts (up to 25% off) or usage-based insurance programs with apps that monitor driving habits and can save up to 30%. Note that these are separate discounts, not additive.
Going to college
Student discounts or location changes can impact your rates. If your student is attending college without a car, you might qualify for a distant student discount.
Buying a new car
A different provider may offer better coverage for your new vehicle. Some insurers specialize in certain vehicle types or offer features like new car replacement coverage, gap insurance or better rates for certain models based on their safety records and repair costs.
Huge credit score improvement
In most states, an increase in your credit score means better insurance rates, as insurers often use credit-based insurance scores to determine risk and pricing.
Changes in annual mileage
Lowering your estimated mileage generally results in lower insurance costs. If your driving frequency changes, you can lower your annual mileage estimate.
Bundling opportunities
If you've recently purchased a home, bundling policies with a single company often offers multi-policy discounts that can save 5% to 25% across all your insurance needs.
Clean driving record
As tickets and accidents age off your record (generally after three to five years), your risk profile improves. Many drivers don't realize this is an excellent time to switch, as different insurers weigh past violations differently.
Military deployment
Active-duty military personnel may qualify for special coverage options. Some companies, like USAA and GEICO, offer deployment-related benefits such as suspending certain coverages or special discounts during overseas assignments.
STATE-SPECIFIC SWITCHING CONSIDERATIONS
Different states have varying requirements and protections that will impact how and when you switch car insurance:
- California: Strong consumer protection laws eliminate penalties for mid-term cancellation, making it easier to switch at any time.
- New York: Requires a 30-day notice for certain cancellations but provides financial protection against excessive fees.
- Florida: No-fault insurance laws affect minimum coverage standards. Make sure your new policy meets the state’s personal injury protection (PIP) requirements.
- Michigan: It has a unique no-fault structure. Coverage options and costs vary widely between insurers, so comparing first-party benefits, not just premiums, is important.
When to Avoid Switching Car Insurance Companies
While switching often saves money, certain situations require careful consideration:
- Pending claims: Wait until at-fault claims are resolved to avoid rate complications with your new insurer. See our guide to switching companies after an accident.
- High cancellation fees: Some insurers charge penalties that could eliminate any savings from switching.
- No confirmed policy: Never cancel current coverage without buying the new policy first.
- Valuable loyalty benefits: Long-term customer perks may exceed savings from switching.
- Inadequate research: Ensure you're comparing equivalent coverage before deciding.
Loyalty Benefits Worth Considering
Some insurers offer loyalty programs that provide real value beyond simple tenure-based discounts. Accident forgiveness programs protect your rates after your first at-fault claim, potentially saving hundreds of dollars compared to standard rate increases. Vanishing deductible programs gradually reduce your collision and comprehensive deductibles for each year of claim-free driving.
How to Change Car Insurance Companies: Bottom Line
Switching car insurance takes less than an hour and can save you up to 52% on premiums. The process is simple: 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 if you have all your information ready.
Switching Car Insurance Companies: FAQ
We answer frequently asked questions below to help you better understand the process of switching car insurance companies.
What’s the best time to switch car insurance?
A life change, like moving to a new location, adding a family member to your policy or buying a new car, is a great reason to switch car insurance. You can also shop around anytime to find better rates or coverage.
Can you switch car insurance at any time?
You can switch car insurance anytime, even mid-policy. But you might have to pay a cancellation fee when you cancel your old policy.
Can you switch car insurance after an accident?
You can switch car insurance after an accident, but it won't remove the incident from your record. Some insurers will raise rates for up to three years, unless you have accident forgiveness. But you might still find cheaper rates with a new company.
Can you switch car insurance if you owe money?
You can switch car insurance with past-due premiums, but you still must pay what you owe to your previous insurer.
Do you need to cancel your car insurance when switching?
Yes, you'll have to cancel your current car insurance. To avoid a gap in coverage, only cancel after you're sure your new coverage has started.
How long does it take to switch car insurance companies?
You can switch car insurance in less than a day or even within hours. Buy your new policy first, confirm it's active, then cancel your old one. Most insurers give you immediate coverage and digital proof of insurance while you wait for physical documents.
Will switching car insurance affect my credit score?
No, switching car insurance companies won't hurt your credit score. Insurers might check your credit when giving you quotes in most states, but these are "soft inquiries" that don't affect your credit score.
Can I switch car insurance if I have a high-risk driving record?
Yes, you can switch car insurance with a high-risk driving record, though you'll have fewer options and higher premiums. Some insurers specialize in high-risk coverage and could offer better rates than your current company despite your record. Our research shows State Farm has the best rates for drivers with accidents or violations.
Will I get a refund if I switch car insurance mid-policy?
Yes, most car insurers give you a pro-rated refund for any unused premium you've already paid, minus cancellation fees if they apply.
Do I need to inform the DMV when I switch insurance companies?
This varies by state. Some states require notification, while others receive updates directly from insurance companies. Check your state's DMV requirements.
How quickly can I get coverage from a new insurer?
Most insurers can provide immediate coverage and digital proof of insurance within hours of application, allowing for a same-day switch when needed.
Should I switch for a small savings?
Think about more than just price. Small savings (under $100 yearly) might not be worth switching car insurance if you're happy with your current service, especially if you'll pay cancellation fees.
Switch Auto Insurance Providers: Methodology
MoneyGeek's switching analysis comes from comprehensive research by our licensed insurance professionals, providing accurate guidance for consumers considering new providers.
Rate Analysis and Company Comparisons
We collected quotes from 15 major insurers in all 50 states using standard driver profiles: a 35-year-old married driver with a clean record, a 25-year-old single driver with one speeding ticket, a 65-year-old retiree and families with teen drivers. We gathered both minimum and full coverage quotes for complete cost comparisons.
Discount Research and Verification
Our discount analysis included contacting customer service departments at major insurers to verify current offerings, eligibility requirements and maximum savings potential. We reviewed policy documents and marketing materials to confirm advertised percentages and stacking limitations.
We tested discount application processes to understand practical requirements, including documentation needs and application timelines.
Cancellation Fee and Policy Research
We reviewed cancellation policies by examining policy documents from major insurers and contacting customer service for current fee schedules. We verified state-specific regulations through insurance department websites and regulatory filings.
Our team analyzed state laws governing cancellation fees and consumer protections to provide accurate guidance on avoiding unnecessary charges.
Limitations and Disclaimers
Insurance rates vary based on individual factors, including credit score, driving record, location and coverage selections. Our sample rates represent averages and may not reflect pricing for all consumers. Actual savings depend on individual circumstances and current policy details.
Discount availability and percentages may vary by state and are subject to change. Consumers should verify current offerings and eligibility requirements directly with insurers before switching.
State regulations and insurance requirements change periodically. While we maintain current information, consumers should verify state-specific requirements with their local insurance department or licensed agents.
Changing Car Insurance Companies: Related Pages
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
