Can I Switch My Car Insurance Company Mid-Policy?

Last Updated on September 25, 2020

There are some instances where you might want to change car insurance carriers in the middle of your policy. It may be convenient to stay with the car insurance carrier you’ve had for a long time, but you might be able to get a better deal or more comprehensive coverage by switching carriers. Many people automatically assume that you can’t switch when you’ve already committed to a year-long policy, but this isn’t exactly the case. There are options if you want to move to another car insurance carrier that will give you a better deal.

Can you switch your auto insurance company mid-policy? Are there penalties or fees to do this? Below, we’re answering everything you need to know about switching car insurance in the middle of your policy.

How Switching to New Insurance Works

The policies for switching insurance differ from company to company. Generally speaking, most insurance companies allow you to switch to a new insurer without any penalty.

Most insurers allow you to cancel your policy at any time – they just don’t publicize it. In many cases, you can actually get the rest of the policy refunded completely. The key is that you need to give them enough notice and adhere to any stipulations spelled out in your initial policy. You may still get charged a fee for canceling, but if your new car insurance company provides big savings, it will be worth it financially in the long run.

Be sure to talk to your car insurance company before you commit to switching to a new provider. Many companies will offer you a discount if you drop the hint that you are planning on switching carriers. If your business is important to them, they will fight to keep you as a customer.

Things to Consider When Switching Companies

Switching car insurance policies can be inconvenient, so if you decide to switch policies in the middle of a contract, it’s important to make sure that you’re going to reap real benefits from the situation. There are many things you should keep in mind to make sure the process goes as smoothly as possible. Here’s a checklist of things you should consider when switching policies.

• Will I get better savings with my new policy? This is the biggest thing to keep in mind. Car insurance can be expensive, so switching to a cheaper policy can seriously benefit your budget in the long run. When thinking about this, you should factor in monthly savings on the new policy as well as any fees you might have to pay with either company.
• Will I get better value for money with a new policy? Another reason you might want to switch insurance policies is the value you’ll get with a new company. For example, you might find a new policy that costs the same as your old one but provides more extensive coverage for accidents and other damage. This is particularly important to consider if you have had a change in your driving habits – for example, maybe you’re using your car more for work.
• Is your new carrier professional? Just because a company offers low rates doesn’t necessarily mean they are going to be worth switching to. Look at reviews online to see what types of experiences other customers have had with the company to ensure that their claims department is helpful and thorough.
• Will there be a gap in insurance coverage? You should never be driving without auto insurance, and it’s important to make sure that you won’t have a gap between coverage during the switch. You should get confirmation from your new insurance company in writing regarding your new policy before canceling your old one. However, once you’ve switched to the new policy, don’t just stop paying your premiums on the old one. Call them to make sure the policy has officially been canceled.

Why Switch Insurance Carriers Mid-Policy?

You may be wondering why you would want to switch insurance carriers in the middle of your policy, instead of just waiting until the end of your contract, when it would be much easier to switch. There are a few reasons why you might want to make the change now. If the savings you could get from a new carrier are big enough, it could be worth the hassle of switching your carrier right away. You may also find that the deals your new company is offering are only valid for a certain period of time, so you need to switch right away to take advantage of them. Finally, you may have new car insurance needs pop up that your old company can’t meet. For example, maybe you’ve invested in a new specialty vehicle, or you’re driving much more or in more risky situations for work. Switching can be the best way to get the coverage you need.

Final Word on Switching Insurers Mid-Policy

Almost every auto insurance company will allow you to cancel your policy and switch to a new provider in the middle of your policy. You might have to pay a slight fee, but this is the exception, not the norm.

Each insurer’s policy is different, so be sure to read all the fine print before switching to a new policy. However, don’t be afraid to make the leap – sometimes the most efficient way to get the coverage you need at a good price is to make a change.