How to Switch Car Insurance Providers in 4 Simple Steps

Written by The Clearcover Team | 7 minute read

Switching your car insurance company can save you money. It can also save you a bit of headache, if you’re unhappy with your current insurer.

In fact, it’s widely known in the insurance industry that changing your insurance company can be a good way for some drivers to slash their premiums. That’s why insurance companies often advertise that you could save money if you switch.

Here’s the deal: switching can save you money in general, no matter the company. The key is choosing a reliable, affordable insurer that will offer you a great price AND the amount of coverage that’s best for you.

In this guide, we’ll help you understand how to switch insurance companies and what to look for when you’re shopping around. We’ll cover:

The five reasons why you should switch car insurance companies
How to switch car insurance providers in four simple steps
What to consider when selecting a new insurance company
What drivers who switched companies had to say afterwards

Why Should You Switch Car Insurance Companies?

There are several reasons why it can be a good idea to switch your car insurance company, and most of them have to do with the fact that switching insurance companies can often save you money and hassle. The five main reasons to switch that we’ll cover in this article are:

Your premiums have increased and you want to save money.
You’re experiencing poor customer service.
You’ve had a recent life change.
You purchased a new car or vehicle.
You want to increase your car insurance coverage.

Your Premiums Have Increased and You Want to Save Money

There are several reasons your car insurance rates might increase over time. While certain rate increases are inevitable, rate increases can also be a signal that it’s time to consider switching car insurance companies. We recommend you keep an eye on your insurance bill. If you see that your car insurance prices have recently increased, it could be time to start shopping around to see if you can find a better price.

You’re Experiencing Poor Customer Service

Is working with your current car insurance company stressful? It might be time to start looking for quotes. Communicating with your insurer should be straightforward, streamlined, and hassle-free.

If you had a bad experience when you needed your car insurance company the most—whether it was slow claims payment times, confusing processes, or poor customer service—it could be in your best interest to seek out a different insurer. At Clearcover, we’re transforming the car insurance experience. With us, you get faster, smarter, and easier-to-use car insurance, all in our streamlined, easy to use app.

You’ve Had a Recent Life Change

When you’re making big moves in life, it’s naturally a good time to look for better car insurance rates. Examples include:

You’ve moved states (or even just neighborhoods)
You’ve been married or divorced
You’ve had a baby (congrats!)
You’re adding a teen driver to your policy

Additionally, coverage requirements and insurers vary by state, so if you’re planning an out-of-state move, be sure to determine if your current insurer covers you in your new location ahead of time. If they don’t, make sure to switch insurers and update your policy ASAP to get the coverage you need in your new state.

Recently married? We wish our best to the newlyweds! Read How to Find Affordable Car Insurance as Newlyweds for more helpful info.

You Purchased a New Car or Vehicle

Adding a new (or a new-to-you) car can change your insurance costs. Make sure that you’re getting the best price for covering your new vehicle by seeking out new auto insurance quotes.

You Want to Increase Your Coverage

If you’re looking to add additional coverage to your existing policy—say, you want to increase your liability coverage or add alternate transportation coverage—make sure to search for the best price with new car insurance companies.

How to Switch Car Insurance Providers

To switch your car insurance company, you’ll want to do a little shopping first.

What you might not know is that you don’t have to wait until your next renewal period to change insurers. You can switch your insurance company at any time—no waiting necessary.

Switching car insurance companies can be easily broken down into four simple steps:

Shop around for the best rates and coverages.
Select the best policy available for your insurance needs.
Cancel your old insurance coverage after your new purchase.
Print out your new insurance ID cards and update your lender.

1) Shop Around for the Best Rates and Coverages

Switching your car insurance company is easy, but it does involve a little bit of homework.

First, do a quick audit of your current car insurance coverage. To do so, simply refer to your current insurance policy. You can review your policy documents, connect with your insurance agent, or talk directly with your insurance company to get this information.

Here’s what you need to know:

How much coverage you currently have
How much you pay for each level of coverage
How much coverage (or what additional coverages) you would like to have

Having a benchmark of what you pay for your current coverage is essential when you’re shopping around for a new car insurance company. (You want to make sure you’re comparing apples to apples!)

After your quick coverage audit, it’s time to get a car insurance quote—or several!

Pro-tips for Shopping for Insurance

To find the best deal, use a reliable online insurance quote generator or price comparison site such as The Zebra or get in touch with an independent insurance agent.

2) Select the Best Policy Available

Once you’ve got an idea of the coverage you’d like to have, it’s time to compare auto insurance quotes.

Here are some things to consider when selecting your new insurer:

Which car insurance company offers the most coverage at the best price? Simply selecting the cheapest car insurance policy available doesn’t necessarily mean you’ll have the coverage you want or need. Use your current coverage as the benchmark to determine if you’ll be saving money, getting an increase in coverage, or both. (With Clearcover, many drivers can get more car insurance coverage at a lower price.)
What discounts are you eligible for? Some insurers offer discounts for good driving behavior, multiple drivers or vehicles, and more. Clearcover will apply most discounts that you’re eligible for automatically when you get a quote.
Does this insurance company have good reviews? One of the many benefits of shopping in the digital age is access to real reviews by real customers. If the reviews for an insurance company are positive and sincere, you can feel confident that you’re on the right track.
Is this company reliable? When you need to file a claim after an accident, your insurance company should be reliable, fast, and helpful. Your auto insurer should also pay covered claims quickly. This is where asking friends and family about their insurance experiences and reading online reviews can provide you some helpful insight.
Which car insurance company is easiest to work with? We’re in the 21st century, so working with your insurance company should be quick, easy, and digital. If it’s a hassle to get clear information or use an insurance company’s website or app, that may be a sign the insurer is a bit behind in other areas as well.

Here’s an example of how to compare car insurance quotes:*

Let’s say you’re currently paying $84 a month for your car insurance. You’ve previously decided what sort of coverage you’d like to have and already have gotten quotes and researched each company.

Now you’re trying to decide between two car insurance companies with great reviews. You have the following quotes to compare:

Quote from Auto Insurance Company A

Comprehensive at $6 per month
Collision at $8 per month
Uninsured motorists property damage at $3 per month
Bodily injury liability that pays up to $500K per person, per accident at $22 per month
Property damage liability that pays up to $500K per accident at $24 per month
Uninsured motorists bodily injury up to $500K per accident at $3 per month

In total, Auto Insurance Company A meets all your insurance needs at $66 per month, saving you $216 per year. Those are some pretty great savings!

Quote from Auto Insurance Company B

Comprehensive at $4 per month
Collision at $7 per month
Uninsured motorists property damage at $4 per month
Flexible alternate transportation coverage at $3 per month
Bodily injury liability that pays up to $500K per person, per accident at $19 per month
Property damage liability that pays up to $500K per accident at $24 per month
Uninsured motorists bodily injury up to $500K per accident at $4 per month

For this quote, Auto Insurance Company B is meeting all your insurance needs, plus offering alternate transportation coverage at the lowest price—all for a total of $65 per month.

They also have a great app with an instant digital insurance card and can issue payment on eligible claims in minutes.

Overall, with Auto Insurance Company B, you’d get the following:

The lowest price available.
More coverage than your current insurer and Auto Insurance Company A.
A better experience overall (because you can manage your policy and claims on your phone).

While individual budgets and car insurance preferences are different for every household, in this example scenario, Company B is the clear choice. And while we don’t like to brag (okay maybe a little), we’re that company for a lot of people. That’s why so many of our customers are glad they switched to us.)

Pro-tip for Selecting the Best Policy

Once you’ve narrowed down your quotes to a couple of options, ask the final few insurance companies on your short list about additional discounts or money-saving options (even unbundling!) to possibly cut your costs even more.

Check out How to Get Car Insurance Discounts to learn more.

3) Cancel Your Old Insurance Coverage

Ready to make your new car insurance policy purchase? After you’ve made your new policy purchase and set a start date, it’s finally time to break up with your old insurance company.

First, you should talk with your current insurer to understand any fees or rules that may apply when canceling coverage. Most companies don’t charge a fee to cancel your policy, but you’ll always want to make sure. If they do charge a fee, usually the amount of money you’ll save by switching can justify the fee.

It’s also important to make sure you have zero lapse in your car insurance coverage. When you're initiating a switch between car insurance companies, a good rule of thumb is to make sure you’re starting your new policy on the same day your old policy ends.

When you cancel your old insurance coverage before your next renewal period, refunds of any prepaid premiums will typically be distributed directly to you. Again, any of these factors can vary from one provider and policy to the next, so you’ll want to talk to your insurance company about the specifics of your plan.

Here’s how to cancel your current car insurance policy:

Call your current car insurer or send them a message online.
Inform them you want to cancel.
Set the final date for your insurance coverage. Remember, it should be the same day as (or the day after) the official start of your new policy.
Get a refund! If you prepaid your premiums and canceled before your policy’s next renewal period, you might have a refund available.

It’s really that simple.

Pro-tip for Canceling Previous Insurance

This tip is crucial—cancel your old insurance coverage only when you’re already signed up with your new insurer and have your new policy in hand. Avoiding a gap or lapse in coverage is essential to staying safe and protected on the road and maintaining a solid, continuous insurance history (which can help keep your rates low throughout your time as a driver).

4) Print Out New Insurance ID Cards and Let Your Lender Know

Unless you’re a Clearcover customer and always have your updated insurance card available on the Clearcover mobile app (whether you have service or not), you’ll need to switch out your old car insurance card with the one from your new insurance company.

As a reminder: you should always carry your proof of insurance with you any time you’re driving, whether you’re driving your vehicle, a rental car, or borrowing a friend’s car.

You’ll also need to notify all the parties who need your car insurance policy information, like your lender if you have a car loan or lease.

To do this, just call your lender and make them aware of the change in policy. Make sure to have your policy number handy. If you drive for your job, your employer may also need this information, so make sure to update them as well.

Pro-tip: Get Insurance With a Mobile App That Holds Your Insurance Cards

Some insurance providers, like Clearcover, have mobile apps where you can easily access your proof of insurance. That way, no matter what car you’re driving, you have your insurance card on hand at all times.

And if you’re a Clearcover customer, our easy-to-use mobile app also allows you to manage your car insurance policy, call for roadside help if you have roadside assistance coverage, file claims, and more.

Here’s What Real People Who Switched to Clearcover Are Saying

We think your experience with Clearcover will be pretty awesome, but we’ll admit, we might be a little biased.

Don’t worry, you don’t just have to take our word for it—our customers will tell you themselves.

Check out these honest reviews from real Clearcover customers.

Switch to Clearcover Today

Now that you know how to switch car insurance companies, you’re ready to get out there and shop around to find the best fit (and savings!) for you.

There are plenty of car insurance companies to choose from—but there’s no one quite like us. At Clearcover, we make next-gen car insurance that’s lightning-fast, easy, and affordable. Plus, we make it really simple to switch over from your current insurance company.

When you’re insured with Clearcover, you’ll also get one of the fastest claims experiences in the industry. With our smart, efficient technology, you can get certain eligible claims paid in minutes.

Basically, you’ll get car insurance that’s smarter, easy-to-use, and puts you in the driver’s seat of your own policy. Take control of your coverage and see what you can save with Clearcover today.

*Examples provided in this article are fictional and are for illustrative purposes only.

How to Switch Car Insurance Providers in 4 Easy Steps