How to Switch Car Insurance Companies: It's Fast and Easy

Before you start the process to switch car insurance companies, here are the key questions and answers you should know:

Before switching car insurance companies, you need to determine the right amount of car insurance: 

1. Review your current policy to understand what coverage you have. Look at your liability limits, deductibles and any optional coverage you have like collision, comprehensive, roadside assistance, or rental car reimbursement. You can keep everything the same with your new insurer, or this is your chance to make changes.
2. Your car might be worth less now than when you bought your policy, which means you could drop comprehensive and collision coverage and save money.
3. If your assets have grown and you've built up more savings or assets, bumping up your liability limits protects you better than state minimums. For guidance on how to get car insurance, review our detailed guide.

Get quotes from three to five companies with identical coverage levels. This lets you compare quotes most accurately.

You've got three ways to get quotes. Going directly to insurance company websites takes more time but gives you accurate, binding rates. MoneyGeek's car insurance calculator is faster and show you multiple options at once, though the rates aren't final until you apply. Or you can compare rates using MoneyGeek's “get quotes” tools to compare rates across companies and get binding quotes. 

Don't shop on price alone. If you want an insurer that'll handle your claim smoothly when you need it most, check MoneyGeek's rankings of the [best auto insurance companies](best auto insurance companies) for quality service and affordability.

Switching at your renewal date is the most convenient option, as your policy ends naturally without additional fees. If you need to switch mid-term, you might face cancellation charges, though some insurers waive them for military deployment, job loss or out-of-state moves.

Cancellation fees vary by company. State Farm and Nationwide don't charge fees in most cases, while GEICO and Progressive typically charge 10% of your unused premium or a $50 flat fee. Liberty Mutual and Farmers charge 10% to 15% of remaining premiums.

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

Don't cancel your current policy until your new policy is active.  Even a one-day gap in coverage means you're driving uninsured, which is illegal in most states. Insurance companies also view lapses as a red flag and can cause rates to go up. After you buy your new policy, here is how to cancel your old policy and get a refund.

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.

We answer common questions about switching car insurance companies.