Can One Change Car Insurance Companies Mid-Policy?

October 22 08:54 2022

Changing car insurance providers mid-policy can be a good idea if they’re unhappy with their current provider. But there are a few things to know. The company makes its own rules, but one can usually cancel their car insurance whenever they want.

An insured driver can either renew the policy at the end of the term or switch companies when the policy expires. When one purchases a car insurance policy for their vehicle, the insurer usually writes policies for a term, usually six months or a year. Many insurers allow them to terminate coverage at any time. However, one may be charged a cancellation fee if they do so early. The following article will tell anyone how to switch car insurance companies during a policy and how to do it.

How Often Can I Switch Car Insurance?

If one decides to change car insurance companies, one may have several reasons, including high rates, poor service, or selling their car. Can they switch insurance companies before their policy expires? Car insurance policies can be changed mid-policy. If they give enough notice, most auto insurance companies will allow them to cancel their current coverage at any time.

There’s a cost to switching mid-policy, and they could have trouble if they don’t know how to cancel. If one needs an update on a claim or wants to know how long it takes to resolve one, call their car insurance company or talk to one of their reps. They’ll also need to settle open claims before moving to another insurer to avoid penalties or fees.

Knowing how to switch car insurance companies, save money, and avoid hidden fees and costs is vital. Clearsurance recently researched that customers who switched their car insurance companies saved an average of $390 per year.

Does The Cancellation Fee Have To Be Paid?

State Farm, GEICO, Allstate, Progressive, and Farmers are some of the largest auto insurance companies in the nation that don’t charge a cancellation fee when they cancel their policy mid-policy. If one wishes to cancel their policy before expiration, one should speak with their insurance company about any potential penalties.

If they cancel their current policy and start a new one, they must ensure no coverage lapse. If one doesn’t, insurers may label them a high-risk drivers, which increases their insurance rate. Changing car insurance can be tricky, but it’s not wise if one has unresolved claims or try to cancel their policy outright. One can switch car insurance anytime, but should they? Then one might want to talk to their current auto insurer about changing their policy at any time without penalty.

Is There A Hidden Fee?

Insurance companies always promise the lowest rates to switch. Often, insurers will offer them a lower rate for the same coverage, but some will drastically reduce their coverage after they get a lower rate. If they have collision, comprehensive, and liability insurance, they’ll only want to compare rates with a company offering the same full coverage and deductibles as they do.

Instead of reducing coverage, ask about discounts that might be available to anyone. If they give up valuable coverage, like collision and comprehensive coverage, they may not end up saving money. Moreover, insurance companies may hide hidden fees and other charges, so they seem like they’re charging less. Consider talking with their current auto insurance company about their coverage options and needs. One may also ask them if they can modify their existing policies, so they don’t have to change providers.

Is There A Coverage Gap?

One can cancel their car insurance policy anytime, but they should be aware of coverage gaps. If, for example, they terminate their current car insurance policy before establishing a new one, they may face severe financial and legal repercussions due to a coverage gap. One may also get charged more if they go too long without coverage because new insurers see them as a risk-taker.

Ensure that their new insurance policy starts before they cancel their old one or before it expires. One wants continuous coverage, so they don’t lose discounts when they switch providers. Also, if one has gaps in coverage, they might lose loyalty discounts. Besides fines, the Insurance Information Institute says driving without coverage can lead to jail time, suspension of their license, and penalties. Saving money and looking good in the eyes of their new insurer are two things one can do if they don’t let their coverage lapse.

Process Of Switching Car Insurance Companies:

Sara Routhier, Director of Outreach at, suggests a few simple steps make switching insurance companies easy. When switching car insurance companies, take the following steps:

  • See when their current policy ends and if there are cancellation fees.
  • To find the best deal, compare rates and coverages from several companies.
  • Start the registration process for their new policy, and get it ready.
  • Find out if their current insurer owes a refund and notify them that they are leaving.
  • Make sure one has updated insurance cards in their car. If their insurer uses a mobile app, they can also download it to their phone. One should let their lender know their updated insurance information if they have a car loan or lease.

Before selecting a new auto insurance company, it is important to research the most suitable options. One can filter by their state or ZIP code to find the best car insurance companies based on Clearsurance’s ratings of customers. The Clearsurance website allows them to read reviews of various auto insurance companies once they have selected a few that interest them. This will enable them to discover what other customers say about those companies.

The Bottom Line

One can cancel their car insurance policy early with most companies, but one may be charged a cancellation fee. Check their cancellation fee before switching insurers. If they’re changing companies, ensure they have new coverage before their old policy expires. Otherwise, they’ll have a coverage gap, resulting in higher insurance rates. It may be cheaper to wait until their policy ends. Before deciding which company is best for them, compare multiple companies to find better rates or better customer service.

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