How to switch car insurance: 5 easy steps to save in 2026

Q: Can I switch car insurance companies in the middle of a policy?

Yes . You can switch your car insurance to a new company at any time.

Q: Can I switch car insurance while I have an open claim?

Yes . As long as your insurance was in force at the time of the claim, your previous insurer has to pay the claim, even if you cancel the policy and move to a new insurer.

How to switch car insurance companies in five easy steps

You can switch car insurance companies by comparing quotes, purchasing the new policy, canceling the old one, and confirming there is no gap between policies. The key is timing. Your new coverage should start before your old policy ends, so you stay insured throughout. Once you've chosen the new policy, you can follow the steps below to switch.

Step1: Shop for a new policy: Compare rates and coverage from multiple companies

Do some research to find the right replacement policy before you do anything else. Request and compare quotes from three to five different companies and then:

Check the coverage to ensure it includes what you need
Check the deductible to ensure the rate isn't just lower because of a high deductible and that you can afford it
Take a look at the company's reputation to make sure your low rate isn't coming at the expense of good service

Once you've carefully compared your options, choose the one that works for you. Pay for your new policy and select an effective date, which will be the date your car insurance coverage begins.

Step 2: Find out about any fees, penalties or reduced refunds for early cancellation

Most insurance companies allow you to cancel auto insurance without penalties. Some companies, however, may charge an early cancellation fee or issue a reduced refund (more on this below).

You can call your insurance company or review your policy's terms and conditions to determine if you'll be charged a cancellation penalty. Knowing in advance will help you decide whether to switch right away -- or wait to cancel until it's time for your policy to renew.

If there is a cancellation penalty, look into new-customer or insurance transfer discounts from your new insurance company. It may offset your existing insurance company's cancellation fee.

Step 3: Cancel your old insurance policy

Before you cancel your existing policy, make sure the new policy is in force, or your car insurance could lapse. A gap in coverage could negatively impact your future car insurance rates.

You can then cancel the old one; usually, you can do this over the phone or by mail. It's not usually possible to cancel online.

Check that your new insurer emails you proof of insurance and a declarations page, which is a document showing you're insured as of a specific date. You may need it later if you decide to cancel.

Step 4: Request a refund of unused and prepaid premiums

If you prepaid your old policy and canceled before the coverage was up, you should receive a refund for the unused premiums. Most insurers will do this automatically, but it's a good idea to verify the process.

Note that, as mentioned above, some companies may issue a reduced refund. This is called "short-rating," and it means the carrierAn insurance carrier is the company that provides your car insurance policy and pays claims. is keeping some of the premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. as a penalty for early cancellation, to cover administrative costs. In most cases, however, your refund should be pro-rated.

Step 5: Get your new insurance cards and update your lender

If your new car insurance company doesn't mail insurance cards and documentation, you'll need to print out a copy for your records. Be sure to print insurance cards for all your insured vehicles and keep one in each car's glove compartment.

If you have a loan, contact your lender to update the insurance information. Your new insurance company will likely send out proof of insurance to the lender, but it's a good idea to ensure it's been received.

What are the pros and cons of switching insurance companies?

Switching insurance companies can lower your premium, improve your coverage, or give you access to better service. It can also cost you certain loyalty perks, bundle discounts, or accident forgiveness benefits. The best choice depends on how much you save and what benefits you give up.

Pros:

Switching to a new car insurance company is an easy way to save money
Insurers often offer discounts to new policyholders
You may earn a discount on your home insurance if you are switching to bundle your home and auto

Cons:

If your move breaks up your bundle, you will lose discounts
There may be cancellation fees if you cancel your old policy early
New policyholder discounts don't last past your first renewal, so you may find yourself shopping again

When can you switch car insurance?

You can switch car insurance at any time, not just at renewal. Many drivers shop when rates increase and when they move, buy a car, add a driver, or lose a discount. If you cancel mid-term, ask about cancellation fees and make sure your new policy starts first.

Switching at renewal is common since it's when people see rate increases, but you have the right to cancel whenever you want to.

Is it worth switching auto insurance companies?

Switching car insurance is worth it if you can get the same or better coverage for less, get better service, or bundle policies more effectively. Compare the full policy, not just the premium. A cheaper quote may have higher deductibles, lower limits, or fewer benefits than your current policy.

After getting a few comparable quotes, you've found a significantly cheaper policy.
You are relocating to an area where your current car insurance provider doesn't operate.
You no longer qualify for auto insurance discounts.
You're unhappy with the level of service.
You'd like to bundle all your insurance with one company.

FAQ: Switching auto insurance

Can I switch car insurance companies in the middle of a policy?

Yes. You can switch your car insurance to a new company at any time.

Can I switch car insurance while I have an open claim?

Yes. As long as your insurance was in force at the time of the claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing., your previous insurer has to pay the claim, even if you cancel the policy and move to a new insurer.

When does it make sense to stay with the same insurer?

Sometimes loyalty to your current car insurance provider should be strongly considered. For example, customers who bundle home or renter's insurance, among other types of coverage, with one provider can be rewarded with significant discounts. Also, they may provide additional valuable perks such as accident forgiveness in exchange for your brand loyalty.

Do I need to let my lender know about switching auto insurers?

Yes. If your car is financed or leased, your lender needs proof of the new policy. Your new insurer may send it, but you should confirm the lender received it to avoid force-placed insurance, which is a policy that the lender buys and charges you for that protects only its interests.

How do I switch companies without a lapse in coverage?

To avoid a lapse in coverage, set your new policy to start on or before the day your old policy ends. Get written proof of the new effective date, pay the new premium, and cancel the old policy only after the new coverage is active.