How to Switch Car Insurance

The type of insurance you decide to carry depends on how much your state requires and how much coverage you want in the event of an accident. The state minimum is how much any driver must carry, while liability insurance offers protection for any damage you cause to others. Full coverage auto insurance pays for damages caused to both yourself and others by adding comprehensive and collision coverage.

The level of coverage you need depends on your car's value, the coverages required by your leasing company or lender, the value of your assets and several other factors. The table below shows how much car insurance costs depending on your level of liability insurance, your age and whether you buy comprehensive and collision insurance with a $1,000 deductible.

Insurance companies may charge a cancellation fee for terminating a policy early. However, you may also be eligible for a refund of the remainder of your policy. Compare the costs. If the monthly savings and refund are higher than the cancellation fee, it may make sense to switch car insurance companies even if you’re mid-policy.

MoneyGeek found that the largest car insurance providers in the country rarely disclose fees:

• No fee: GEICO and USAA
• Cancellation fees are undisclosed: Allstate, Farmers, Nationwide, Progressive, State Farm and Travelers

Note that non-disclosure of fees doesn’t necessarily mean no cancellation fees. Early cancellation fees may vary based on state regulations. However, some insurers may offer no fees and a full refund. Contact your agent or insurance provider to learn more about cancellation fees and refunds.

If you want to save money on auto insurance, comparing quotes from multiple car insurance providers is one of the smartest things you can do. Based on average rates, the most affordable options for drivers looking for full coverage are:

• 22–29 years old: State Farm ($1,099 per year)
• 30–59 years old: State Farm ($883 per year)
• 60+ years old: State Farm ($819 per year)

Although USAA has the lowest average premiums for all age groups, the company only insures active-duty military, veterans and qualified family members.

These rates are national averages. Actual costs may differ based on individual driver profiles, but you could lower your premiums by taking advantage of available car insurance discounts.

Before switching policies, check with your current carrier to see if you can negotiate a cheaper rate. If you’re moving, ask if the company offers auto insurance in your new location. It also helps to research the cheapest car insurance companies in your new state. Use the table below to find the best and most affordable companies and compare car insurance rates across different age groups and policy types.

Driving history is among the most important factors insurers evaluate when determining premiums. After an accident, your rate will typically increase. That said, switching car insurance after an accident or during a claim is still possible. You may also find cheaper premiums or a better insurer.

Keep in mind that a violation will impact your rates for at least three years unless you have accident forgiveness coverage. Switching insurers after an accident or claim won’t delete the incident from your record. In addition, quotes from new insurers may be more expensive. And, even after switching insurers, you will still have to work with your original insurer to finish the claim process after an accident.

We collected car insurance quotes for a 40-year-old male driver with no violations. Full coverage rates are for a 100/300/100 policy with a $1,000 deductible. Minimum coverage refers to state minimum coverage requirements.

Before you cancel your existing your car insurance policy, you should buy the new car insurance policy first. A lapse in car insurance coverage could result in rate increases of hundreds of dollars per year with your next insurer.

A lapse in coverage occurs when you have a period of time in which you don't have a car insurance policy. Penalties are more severe if your car insurance lapses for more than 30 days, but even going one day without coverage can result in limited penalties.

Before ever canceling your current policy, your new one must be active. After identifying the new company, you want to provide your auto insurance, pay the quoted premium and ask for confirmation. Ensure that the date your new policy starts matches the day the old policy ends. Planning this in advance, rather than buying car insurance on the same day it expires, can help you save money in the long run.

You can also ask for a digital copy confirming your coverage until mailed copies arrive. Only after you receive this documentation should you contact your previous insurer and notify them of your desire to cancel the policy.

You can switch car insurance once you find a new insurer and policy. First, buy the new coverage and confirm it is in effect. Then, immediately cancel your old policy to avoid any overlap. If you’re renting or leasing a vehicle, inform your lender that you have changed insurance providers.

Switching providers doesn’t cancel out past-due premiums you owe the previous insurer. You must still pay what you owe, plus the cancellation fee.

If you still have questions about the process of switching car insurance companies, check out answers to some of the most frequently asked questions below.