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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. As a driver, it’s normal to want to compare car insurance quotes to ensure you’re getting the best deal on your policy. According to data from J.D. Power, about are either actively shopping for a new car insurance company or have recently compared quotes after an event triggered the need to shop for a new policy. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More Whether you’re moving, buying a new car, getting rid of an old car, adding or removing a driver, or filing a claim, you may be wondering whether it’s time to switch insurance carriers. Shopping around for a new policy or car insurance company can be a crucial part of ensuring that your coverage is sufficient and that you are not paying more than you should for your policy. Luckily, switching carriers is not difficult. Bankrate’s insurance editorial team can help you learn how to switch your car insurance in eight simple steps. Lightbulb Key takeaways If you’ve had a major life change, such as getting married or buying a new vehicle, you may want to consider switching car insurance companies. To avoid coverage lapses or overlaps in coverage that could put you at financial risk, you should start your new coverage on the same day that your old coverage ends. If you have an open claim with your current insurer, you probably won’t be able to change companies. When to switch auto insurance companies
Although you can change your auto insurance company at any time, certain events might mean it’s time to start looking for a new carrier, or at least to to ensure you are getting the best deal and best coverage to meet your needs. You may want to consider shopping for new coverage if you are: Moving to a new ZIP code, city or state: Your city, state and even your ZIP code may impact your car insurance premium. If you are moving, it may be a good time to consider a new car insurance company to at least see if . Adding a driver or car: If your is about to get a license or you are adding a new car to your household, consider getting quotes from other insurance carriers. Every company has different , and many offer student-based discounts, so you may find a company that offers a lower premium for your new driver or vehicle. Experiencing a life change: Life changes like getting married, divorced, buying a home or getting a new job can impact your auto insurance needs and premium. Updating your current policy or searching for a new one may be a good idea under these circumstances. Approaching your renewal date: You can change your car insurance at any time, but your renewal date offers a particularly convenient time to switch. If you cancel your old policy on its renewal date and start your new policy on the same date, you may be less likely to have to deal with small bills, a cancellation fee or refunds on the old policy. The important thing is to ensure there are no lapses in coverage because this can leave you financially vulnerable and may increase the cost of future premiums. Seeing an increase in premiums: This will generally happen at a renewal, or if you make a change to your policy. Seeing an increase in your car insurance bill may mean it’s a good time to see if other carriers can offer you a . Reviewing your options: If you’re happy with your company and premium, there’s really no need to shop for new auto insurance. If you are curious though, there’s no harm in getting quotes. You may discover that another company offers much lower rates or offers policy features that your current carrier doesn’t. Simply getting quotes doesn’t have any adverse effects and doesn’t lock you into a purchase agreement. While switching carriers can have its advantages, there are also times when changing auto insurance providers may not be a good idea. If you have just filed a claim, for example, you likely will not be able to change carriers. If the claim has not been settled and paid, your new car insurance company may not have the opportunity to correctly rate your policy. This could cause a large increase in your new policy premium at renewal, a retroactive charge to account for the increased risk that the new company did not know about or even a cancellation for misrepresentation if you did not tell your new carrier about the outstanding claim. 8 easy steps for switching car insurance
If you are thinking of switching to a new car insurance company, you may be wondering how to actually make the change. Here’s how to navigate an insurance company change: 1 Consider your coverage options
Too little auto insurance can leave you financially exposed, but too much coverage may mean you are overpaying. For example, if you own an old car that isn’t worth much, it may not be cost effective to pay the higher rates that come with a full coverage policy, as long as you don’t have a loan or lease. If you think you are overspending, you may want to consider switching car insurance. Ultimately, the more coverage you add to your car insurance policy, the more it will cost. If you are wondering how to switch auto insurance, understanding the different types of car insurance coverage — and which ones you need — is an important first step. Learn more: 2 Check for potential penalties
If you decide that switching your car insurance is the right option, you may want to find out if there are any penalties, like a cancellation fee, for changing car insurance carriers before the end of the coverage period. Fortunately, auto insurance companies generally give you the right to cancel your policy at any time as long as you provide proper notice. While most auto insurers will likely refund your unused premium, some may charge a fee if you choose to cancel in the middle of your policy term. Before canceling your policy, you may want to talk to your company’s customer service department or ask your agent if the company has any specific cancellation stipulations. If you find out that you will be charged a penalty for canceling in the middle of your term, you may want to hold off on switching policies until your policy is up for renewal. But if you can find a new policy with a premium that makes up for any cancellation fees charged by your old carrier, it may still make financial sense to change companies. Auto Car Guides Looking to save money on auto insurance
Compare rates & save Compare rates & save ADVERTISEMENT Get my free quote Powered by Coverage.com (NPN: 19966249) This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. 3 Compare car insurance quotes from multiple carriers
If you have decided it’s a good time to change carriers, the first thing you might want to consider doing is getting quotes from several different auto insurers. This will allow you to compare auto policy premiums, coverage options and discounts you may be eligible for. Just make sure you are getting quotes for the same coverage, so you are comparing premiums for the same coverage types levels. Whether you are getting quotes online, by phone or at an agency, you’ll likely need to be prepared with some basic information: Address where the car will be stored Vehicle year, make and model Vehicle identification number (VIN) Driver’s license numbers for all drivers you need listed on the policy (auto insurers will use this information to review your motor vehicle record and any other personal factors that might affect your premium, such as your credit-based insurance score in some states) Social Security numbers for the policy owners (not all companies require this, but it is a common practice to ensure that the credit-based is matching up with the correct named insured) As you are researching companies, you can also review available discounts. Asking companies to include all the discounts you qualify for on a quote could help you to find cheaper coverage. Learn more: 4 Contact your current carrier
As you are getting quotes from other carriers, contacting your current provider could be beneficial. Although it is a that insurance rates are negotiable (meaning that your company won’t be able to lower your bill just to keep your business), you may be able to identify discounts and other savings opportunities that you are currently missing. Your agent may have suggestions about how to lower your costs, like maintaining a clean driving record or even buying a less expensive vehicle. This step is particularly important if your insurance is written through an independent agency. are able to represent numerous insurance providers, unlike captive agents who only sell insurance products from a single company. An independent may be able to shop your policy with multiple carriers to find you a lower rate while still keeping your policy in the same agency. Learn more: 5 Research the new company
You may want to research an insurer thoroughly before purchasing a policy. Price isn’t the only factor to consider when shopping for car insurance. Reviewing other metrics can help ensure that you choose a carrier that fits all your needs, not just your budget. Some helpful resources include: Bankrate insurance company reviews: Bankrate’s editorial team analyzes average premiums, customer service scores, third-party financial strength ratings, available coverage options and discounts . In addition to our best overall company picks, we also looked at the best car insurance carriers in each state to help give you a better sense of what is available in your area and how much it might cost. : This organization assigns a score to each company based on the average it receives. A score above 1.00 indicates an above-industry-average number of complaints, while below 1.00 indicates a below-industry-average number of complaints. : This company conducts studies from multiple angles, including and , and assigns a score to each car insurance company. Some of its rankings are also region-specific. : If you want to know more about a company’s financial strength, AM Best may be a good resource. AM Best rates companies with letter grades based on numerous financial measures, which can indicate a company’s historical ability to pay out claims. The higher a company’s AM Best rating, the more financially stable that company has historically been. Although price is an important consideration, it is not the only factor you should consider when choosing an auto insurance company. Working with a licensed insurance professional may help you choose a carrier that fits your needs. Learn more: 6 Avoid a lapse in coverage
If you switch your car insurance after your existing policy expires, you could experience a lapse in coverage. A lapse in insurance coverage could lead to serious legal and financial challenges, especially if you are involved in an accident while uninsured. If you cause an accident and you do not have insurance coverage, you will be responsible for the damages, including any applicable medical bills, out of pocket. Even if you are not at fault, most states require insurance providers to file proof of insurance with the Department of Motor Vehicles after an accident if police are called. If you , your driver’s license could be suspended. Driving without insurance could cause insurance companies to charge you higher premiums in the future because they may consequently perceive you as a . Your new insurer should be able to time the activation of your new policy so that it begins exactly as your old coverage ends. Learn more: 7 Make sure your old policy is canceled
If you are switching car insurance to a new insurer, do not assume that your existing policy is automatically canceled if you stop paying premiums. Most insurance experts recommend that you contact your current carrier to cancel your policy when you are switching to a new car insurance company. Follow these few steps to terminate your prior policy: Contact your current insurance company and notify them that you are terminating your policy. This will prevent them from billing you for future coverage. If you signed up for automatic payments, you may need to log into an online account and cancel the auto-withdrawals. If you use your bank’s bill pay service to pay your premiums, be sure to stop the payments with your bank. Ask your carrier to confirm the termination in writing. Each insurance company has its own process for canceling policies. You may need to sign a form authorizing a cancellation, or you may need to call and speak directly with a company customer service representative. Your insurance agent can help you through the process. Learn more: Auto Car Guides Looking to save money on auto insurance
Compare rates & save Compare rates & save ADVERTISEMENT Get my free quote Powered by Coverage.com (NPN: 19966249) This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. 8 Print out your new car insurance ID cards
Once you have officially canceled your old policy and started your new one, you’ll likely want to switch out your old insurance ID card for an updated one to keep in your vehicle or wallet. If you get stopped by law enforcement or become involved in an accident, you will need proof of coverage under your new auto insurance provider. Frequently asked questions
Can I switch companies if I have a loan on my vehicle
Yes, you can switch companies if you have a loan on your vehicle. If you find a new insurance company with policies that match your auto insurance needs and your budget, it is possible to make the switch. During the process, you should make sure your new policy reflects that your lender or lessor is an additional interest. If not, the lender may get a cancellation notice from your previous insurer but may not receive the new policy details. If this happens, the lender may think there’s a lapse in coverage. If you receive a letter about proof of insurance from your lender or lessor, contact your financial institution with your new policy details, or send the letter to your new insurer so they can update your policy and offer proof of insurance to your lender.
How often should I shop for a new car insurance policy
The answer to how often you should shop for a new car insurance policy is different for everyone. You may want to compare auto insurance coverage to see if you are getting the best deal with your current carrier when your policy is up for renewal. It may also benefit you to shop for a new policy when making coverage changes, buying a new car, adding a new driver or moving. Remember, though, that just because you shop around does not mean you have to switch. Staying with one company may result in loyalty discounts or other related benefits.
Can I switch car insurance while I have an open claim
It depends. You may be able to switch car insurance while you have an open claim, but a good practice is to wait until your claim closes. Switching car insurance while you have an open claim may result in a premium change soon after you get your new policy or at your renewal. Insurance companies base premiums on each driver’s risk profile. Without the full claim history, your assigned risk level could change once the claim is closed, which may result in a significant premium increase. Also, consider that every auto insurer has its own underwriting guidelines and may not accept new customers who have open claims.
Do car insurance companies refund premiums I already paid
Yes, car insurance companies should refund premiums that you have already paid for after you switch carriers. This can happen when you switch from your previous insurer during the policy period or paid your premium in full. Each company has its own cancellation guidelines, which may include a cancellation fee, so you should check with the company to make sure you understand its insurance cancellation policy. Some companies also charge what is called “earned premium,” which is a set amount that is nonrefundable regardless of when you cancel the policy. Additionally, if you cancel your insurance policy on its renewal date and have not yet paid the renewal premium, you likely will not be eligible for a refund. SHARE: Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs. Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.