Switching Car Insurance In 7 Steps

Deciding whether or not you should switch your car insurance takes a lot of consideration. There’s so many options for you to choose from, and so many other problems you may not have expected. There’s lots of good reasons why you should consider switching car insurance, but it never hurts to keep your options open even when you’re happy. 

This article shows you what you need to do before you switch car insurance companies. We’ll also go over some negative and positive repercussions that can happen when you do switch. If you ever get lost, or we don’t answer a question, you can easily call Quote Purple to talk to a real partner.  

1. Decide If It’s The Right Time

Even if you’re dying to get out of your current policy, it might not be the best time. Consider what your life will look like over the next 6 months to a year. You could move, get married, or buy a new car; all these things affect your car insurance. If you do have a major change coming up, it’s best to wait before you switch your car insurance. 

Similarly, most car insurance companies also offer loyalty discounts to their customers. It’s best not to switch car insurance companies every time you see a better price. Try to negotiate a better premium with your current provider if your quotes are less than 10% of what you’re currently paying. 

Most policies last between 6 months to a year. Check to see when your current policy ends, then check for possible penalties. 

2. Compare Coverage Options

When it’s time to switch your car insurance, start by comparing car insurance quotes. Make sure you test out all your coverage options when you compare. You can use a tool like Quote Purple to easily compare your car insurance quotes for free. 

Start by considering how often and how much you use your vehicle. There are several events that could affect your car insurance. For instance, if you started working from home this year, you likely won’t need as much coverage. However, your current company may not have a program like pay-per-mile. 

With Quote Purple’s technology, you can easily edit and alter your information whenever there is a major change that could affect your car insurance. We’ll send you some free quotes whenever you do have major change like this, or if you want to see what other competitive rates are out there.

For a list of possible life events that increase or even decrease your insurance premium, check out our article below.

Also Read: 7 Reasons To Switch Your Car Insurance

3. Read Reviews On Your Top Options

Weed out your favorite quotes, then take some time to research the insurance company. Read customer reviews, check their reputation on the Better Business Bureau’s website, and ask your friends! 

Just because a company has the cheapest quote doesn’t mean they’ll really be there for you. If you want to skip the hassle of researching your insurance company, you can always trust Quote Purple’s partners. We do extensive background checks and quality control with all our partners, so you know you’re in good care. 

Also Read: How My Insurance Protected Me In A Not-At-Fault Accident

4. Check For Penalties 

Even some of the top car insurance companies have penalties for leaving before your current policy is finished. Contact your current insurer to see how much you’ll pay in penalties. Insurance companies that charge penalties will go by either a flat fee, or a percentage of what your current premium is. 

Penalties are normally very affordable; so even if you are charged, you won’t take a huge hit. Most insurance companies won’t charge you any penalties as long as you give proper notice. 

5. Contact Your Current Insurance Company

If you have decided that it’s time to switch your car insurance, contact your current provider to start the process. Your current car insurance company will likely want to keep doing business with you. They might try to match your quotes, or offer you other discounts you don’t know about. 

There’s lots of hidden discounts your car insurance company may offer. Check to see if you qualify for them with your current company, and with the other car insurance companies you want to switch to.

Also Read: 5 Hidden Discounts Insurance Companies Wish You Didn’t Know 

6. Make Sure Your Old Policy Is Canceled 

Most drivers sign up for auto-renewal so they don’t have to bother with car insurance updates and headaches. This means that if you stop paying your premiums, but have auto-renewal set up, your credit could take a hit! Poor credit affects your car insurance premium, no matter where you go. So always check to make sure your policy is totally canceled.

To ensure your car insurance is completely canceled when you switch your car insurance, follow these 3 steps:

  1. Contact your current car insurance provider to end your current policy.
  2. Ask your insurance agent for confirmation in writing. 
  3. Go online to both your bank and your car insurance profile to make sure your auto-renew is off.

If you’re worried about forgetting your renewal date, Quote Purple can also remind you. We’ll make sure you receive your quotes and are reminded to check your car insurance when it’s time to renew. 

7. But Make Sure You’re Still Covered!

When you do switch your car insurance, make sure you won’t have a gap in coverage. Losing coverage for even a single day can affect your day-to-day life. Choosing to drive without insurance will have serious financial and legal consequences.

Communicate with both your old and new car insurance companies so both policies end and start the same day. 

Also Read: Is It Illegal To Drive Without Insurance?

Ready To Switch Your Car Insurance?

It’s never a bad time to think of switching your car insurance. Your car insurance should work for you, not the other way around! Keep your car insurance company on their toes by knowing all the best deals and premium rates you can get. 

Want to see how easy it is to compare quotes from top-rated insurance providers? All it takes is 5 minutes to fill out Quote Purple’s compare tool, and we’ll send your car insurance quotes right to you. 

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