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

Before switching car insurance companies, review your current policy to understand what coverage you have. Look at your liability limits, deductibles and any optional coverages like roadside assistance or rental car reimbursement. You can keep everything the same with your new insurer, or this is your chance to make changes.

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. On the flip side, if you've built up more savings or assets, bumping up your liability limits protects you better than state minimums. Your new insurer will walk you through these options when you get quotes.

Next, 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. Free online comparison tools such as MoneyGeek's car insurance calculator are faster and show you multiple options at once, though the rates aren't final until you apply. Independent agents can access regional carriers you might not find online and help explain your options, though they earn commissions from the policies they sell.

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 for 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.

Switching at your renewal date is the most convenient option, as your policy ends naturally without any 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

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.