Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jan 19, 2022

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Switching car insurance companies can often lead to great savings on auto insurance but there are many things to consider before switching auto insurance providers.

No two car insurance companies are equal and before switching insurers you need to have both reasonable expectations and a thorough understanding of auto insurance.

Use our FREE quote tool to compare auto insurance rates today!

The following is a list of items every driver should consider before switching car insurance providers.

Why are you switching?

Ask yourself why you are considering switching car insurance companies. Is it the promise of lower premiums or better customer service?

The #1 reason for switching car insurance companies is lower premiums but what a lot of people forget along the way are the intangible factors like customer service, local agents and other factors which are hard to put a price on. Does your current provider have 24/7 claims handling and will the new provider have the same?

While the cost of car insurance is highly important to your budget its important to remember why you choose your existing provider in the first place.

If you are switching solely for lower premiums then its always worth calling your existing car insurance company and ask what they can do.

How much coverage do you have?

Believe it or not only a small percentage of drivers can tell you how much car insurance they have without referring to their policy. When car insurance companies advertise you can save $500 or $600 by switching providers do they always mean you are getting the same coverage or just saving money switching to lower limits?

There are always a lot of details in the fine print so make sure any new policy has the same coverage you already have. Sure, it’s nice to save a few bucks but you also want to make sure you are covered in a car accident.

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Are you moving to a company of comparable strength?

The real test of a car insurance company is not how much premiums cost but how they treat claims. You need a car insurance company who will be there to provide coverage when you need it and while most car insurance companies have a good reputation there are some who still try to penny pinch on claims.

Try to speak to some friends or relatives who have filed a claim with any potential providers you are considering switching to and ask about whether or not this particular insurer treated them fairly. You also want to read car insurance reviews and pay attention to industry ratings like A.M. best and J.D. Powers and Associates.

When should I switch car insurance companies?

This is very important as you never want to have a lapse in policy coverage and you want to avoid any penalties for cancelling a policy before its renewal date.

While car insurance companies allow you to cancel a policy if you no longer have the vehicle switching car insurance companies should be timed with your policy cancellation date as some insurers have penalties for cancelling early.

Remember that you committed to a 6 month policy and whether or not you choose monthly payments the fact is you did buy a 6 month policy and are obligated to fulfill that term.

The golden rule when it comes to switching car insurance companies is never cancel existing coverage until your new policy is in-force.

How do I find a new car insurance company?

That’s the easy part as most states have over 100 licensed car insurance companies and for many drivers the options seem endless. From Geico to Allstate, State Farm to Nationwide there are many companies with stellar reputations and affordable premiums.

Most drivers start a car insurance comparison search online as it’s the easiest and quickest way to find a list of auto insurance companies and compare rates.

Use our FREE quote tool to compare auto insurance rates today!

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