Is it Time to Switch Car Insurance?

26th November 2021

Getting car insurance is a basic aspect of car ownership. So is switching from one insurance provider to another. Some people switch insurance companies because they are not satisfied with their previous insurance provider. In contrast, other car owners do it regularly to get the cheapest car insurance.


There are many advantages in choosing to switch car insurance. In this article, we discuss the best times for switching car insurance and how to change insurance providers.


Why Switch Car Insurance


When people feel like their car insurance is more of a problem than a solution, they tend to shift to another insurance provider. For instance, you may find that the claims process with your current insurance company is too slow. There’s no point in spending your hard-earned money on something that’s only going to give you a headache.


Another reason people switch car insurance is to save money. Insurance companies offer different insurance rates. Companies do this to attract customers. This is why it’s a good idea to shop around for quotes before choosing an insurance provider.


People also change insurance because there is a change in their needs. The best insurance coverage for you now may not be the best option four years from now. When changing your insurance coverage, you should check with other insurance companies to see if they have a better deal.


Should You Change Insurance Now?

In changing insurance, timing is everything. Changing it too soon or too late can cost you a significant amount of money. The right timing for switching car insurance depends on various factors. Usually, it’s a good time to switch car insurance after major life changes or events that can impact your rates.


  1. Marital Status 

It may be the last thing you expect in this list, but your marital status can affect your insurance rate. For example, if you plan to get married two months from now, you might want to change your insurance after the wedding. Married car owners usually pay lower insurance rates than single drivers because the former are perceived to be more financially stable.


  1. Relocation

Are you moving out soon? Found a safer neighborhood? It’s the best time to change insurance. Insurance companies base their rates on factors such as the likelihood of your car getting damaged. So if you live in a not-so-friendly or unsafe neighborhood, insurers will see that as a risk for your car. As a result, they may give you higher rates since your car is at a higher risk of needing repair.


  1. No Accidents For Three Years

When you request an insurance quote or apply for car insurance, one of the first things companies ask is if you have been in road accidents. If you have not been involved in any car accidents for the past three years, that’s great. It’s the right time to switch car insurance.


If your recent driving record has been less than stellar, you might want to rethink changing insurance. Again, companies base their rate on your car’s risk of getting damaged. That means the company will interpret an accident in your record as a high risk of being involved in an accident. Hence, you will get a high rate.


How to Change Insurance Providers

Changing insurance providers can be challenging. Conducting research is crucial in finding the best insurance provider for your car and your budget. But don’t worry. There are simple strategies you can follow for a hassle-free switch.

  • Talk to Insurance Agents Online – Because companies are now shifting to online-only transactions, you can directly transact with companies online or via phone call without visiting their office.
  • Compare Insurance Rates – Collect as many insurance quotes as you can from multiple insurance providers. After getting quotes from all the possible insurance providers, you need to compare their rates for their coverage and pick which suits your budget.
  • Have Your Old Policy Cancelled – You can cancel insurance coverage anytime, but keep in mind that some insurance providers charge a cancellation fee. Companies like Allstate, Geico, and State Farm don’t penalize their policyholders for early insurance cancellations.
  • Secure Your Refund – Insurance providers usually issue a refund for the remaining months covered in your policy.



In a Nutshell

The right time to switch insurance is ultimately your decision to make. Only you can determine if your car’s current insurance still fits your needs and budget.


There are numerous insurance providers you can choose from, but switching from one insurance provider will not be an easy task. Hopefully, the simple tips above can help you switch insurance without problems.