How to switch car insurance companies and save?
Most drivers stick with the same car insurance company year after year. But this loyalty cost you. Insurance rates fluctuate and competitors vie for your business. The easiest way to score discounts and save hundreds per year is to get quotes and switch insurers. Make switching your new insurance tradition each renewal period.
Shop around every renewal period
Auto insurance prices depend heavily on market competition. As companies compete for customers, they lower rates to attract business. New insurers entering the market also try to undercut established brands. These dynamics change frequently based on claims, profits, and consumer shopping behavior. The rate you locked in last year is unlikely today to be better. Make it a habit to compare quotes from multiple insurers every 6 to 12 months when your policy renews. Online insurance marketplaces make this easy. Enter your details once and receive side-by-side quotes. Switching when you find a lower rate keeps insurers hungry for your business.
Overlap coverage to avoid gaps
When swapping insurance providers, carefully check the coverage start and end dates. You don’t want your old policy to expire before the new one kicks in. This would leave you uninsured even briefly. To avoid coverage gaps, arrange a start date for your new policy that overlaps with the existing renewal term. Most insurers will simply pro-rate your first premium payment. Allow at least two weeks for the new carrier to process your application. Then cancel the old policy effective when the new one is active. You never risk lapses with continuous coverage. And you avoid paying two policies simultaneously for more than a month.
Document your driving history beforehand
Provide detailed information about your driving record and insurance claim history when switching. It includes any accidents, traffic violations, DUIs, insurance payouts, and more for the past 5 to 7 years. Gather documentation like crash reports, traffic citations, court records, and official Car Extended Warranty Insurance letters. Also, tally up years licensed, vehicles insured, and average mileage. Insurers request proof of this history when finalizing a new policy. Full documentation on hand makes for a smooth transition between providers. No surprises down the line that could raise your rate.
Compare coverage limits and options
Don’t assume that switching carriers means maintaining the same coverage. Review the quote details closely and compare liability limits, deductibles, and included endorsements. Make sure core coverage like bodily injury liability, property damage, uninsured motorist, collision, and comprehensive are all-sufficient. Check that rideshare coverage is included if needed. Also, confirm optional endorsements like rental reimbursement and roadside assistance carryover. Match the prior coverage as closely as possible, only reducing limits if the savings outweigh the risks. A slightly stripped-down policy is acceptable for short-term savings. But avoid cutting necessary coverage that exposes you financially.