How To Switch Car Insurance: A Guide (April 2025)

Why You May Want to Switch Car Insurance Carriers

Auto insurance is a significant line item in many consumers’ budgets. Why is car insurance so expensive? A range of factors contribute to the cost of this insurance, including your driving record, inflation and your level of coverage. However, one way to potentially save money is by switching your carrier to one that charges less.

Here are some other reasons you may want a change:

• Buying a New Car: Your insurance needs may have changed.
• Experiencing Dissatisfaction: You had a negative experience.
• Relocating: Your location impacts your premium.
• Changing Lifestyle: You got married, got a divorce or changed jobs.
• Adding a Teen Driver: A teen driver may change your risk profile.
• Raising Credit Score: A higher score could drive down your rate.

Switching your car insurance for any of these reasons may give you an advantage. Whatever your reasoning, though, reviewing your insurance annually can go a long way toward answering a crucial question: How much car insurance do I need?

What to Prepare to Compare Car Insurance Rates

Before jumping over to another auto insurer, consider getting quotes from multiple insurance companies and comparing each against your current insurance and the average car insurance cost per month. Look at the coverages to see that your insurance needs would be met and compare rates.

To obtain quotes from other insurers to compare them and see your options, you should gather the following information that insurance companies may ask for:

• Vehicle Identification Number (VIN)
• Current address
• Driving record
• Name, age, driver’s license and vehicles
• Current or previous insurer

Having all this information at the ready can help speed up the process.

How to Switch Car Insurance Companies

When learning how to change your car insurance provider, you’ll find that it may take a little time. Fortunately, though, it’s not complicated. So what happens when you switch car insurance? Here’s a look at these five steps of the process:

1. Check for Fees, Refunds or Savings

To have a clearer picture of possibilities and costs, review your current policy and contact your insurer. You want to learn whether you may have to pay an early cancellation fee, whether you can receive a refund if you paid your full premium and whether the insurer might offer discounts or other savings.

2. Research and Compare Options

Begin looking into other insurers. You want to consider coverages, deductibles, rates, customer service reviews and companies’ efficiency at handling claims. Consider comparing each company against each other and in the context of your situation. In other words, factor in your car model, driving record and coverage needs.

3. Obtain Proof of Insurance

After choosing a new insurer, apply for your insurance. Once you’ve paid the deposit and the premium or first-month premium, ask your new insurer for proof of insurance. When you’re learning how to switch car insurance, note that this is a crucial step. You must have this proof before you can let go of your previous policy.

You want to verify all your information and the correct coverages. If everything checks out, print a copy and place the proof of insurance in your vehicle.

4. Cancel Your Previous Policy

After buying new auto insurance, you might wonder, “Do I need to cancel car insurance when switching?” Now that you have new insurance — and only after you have proof of insurance — cancel your old policy. This is your responsibility. Your new insurance company generally cannot cancel your old one for you.

You can typically perform this cancellation by phone, online or through the company’s app. If you stop paying the premium, the insurer might not cancel your old policy. Make sure you get a notice from the company that your insurance has been canceled.

5. Contact Your Lender

If you have a car loan or a lease, notify your lender or lessor about your new insurer. You’re also seeking information from your lender or lessor. Typically, these entities require certain levels of coverage. This is your opportunity for you to verify you’re complying with the terms of your loan or lease.

Find Your New Car Insurance at ConsumerShield

So is it easy to switch car insurance? Luckily, the answer is usually yes. However, a lot is on the line with each step. You want to avoid a lapse in coverage. You also want to get the coverage you need at a price that fits your budget.

You may also find that you still have questions. At ConsumerShield, we believe in empowering consumers like you with information to make better decisions. Get in touch with us today.