What happens if I change my car insurance company?
Asked by: Adolphus Satterfield | Last update: June 11, 2025Score: 4.4/5 (72 votes)
Do I need to cancel car insurance when switching?
Your new insurance company can provide proof of insurance to your old company if necessary, but they generally aren't authorized to cancel a policy with another insurer on your behalf. After you purchase a new policy, you should immediately contact your former insurer and cancel your old policy.
Is there a penalty for changing insurance companies?
By giving proper notice, you'll generally be able to switch carriers in the middle of a coverage period. The carrier refunds the unused part of the premium, although some companies may charge a small fee or penalty.
Can I switch my car insurance to another company?
It's important that your car insurance fits your needs and your budget. If you don't feel you're getting the best rate or the best service from your current insurer, you can switch anytime. Just be sure that your new policy begins on the same date (or before) your old policy ends to avoid a lapse in coverage.
Does switching insurance hurt your credit?
Generally speaking, switching car insurance companies won't affect your credit score.
Is switching car insurance bad?
Is Progressive or Geico better?
According to the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, both companies scored below average for customer satisfaction. That said, Geico did score higher than Progressive, with 692 out of 1,000 compared to 672. Keep in mind that these are scores based on customer feedback.
What credit score do you need for car insurance?
While there's no set minimum score to get car insurance, you'll pay more if you have a lower score. Drivers with a credit score of 580 or below pay about 115% more for full coverage than the average driver with a credit score of 800 or above, according to Bankrate.
Do you get a refund if you switch insurance companies?
Switching insurance companies
If you switch car insurance companies and find better rates with a different insurer, you may want to cancel your existing policy before it expires. In this case, if you switch insurance companies you can get a refund. Depending on your insurer, you may have to pay a cancellation fee.
Is it a good idea to switch auto insurance?
Switching car insurance providers may seem like an inconvenience, but depending on your situation, it could save you hundreds of dollars per year. It's generally a good idea to shop around for car insurance once a year to ensure you're still getting the best deal.
Does Geico have a cancellation fee?
If you want to cancel your policy, GEICO makes it easy with no cancellation fee*.
Is there a fee for switching car insurance?
Whether or not you'll pay a fee for switching car insurance companies will depend on your insurance provider. Some charge a cancellation fee for dropping a policy, while others don't. Contact your insurer's customer service department for more details.
What is the penalty for canceling car insurance?
At the same time, you might also be subject to a cancellation fee. Many companies don't charge such penalties, but with those that do, you can expect to pay a flat fee of under $100 or around 10% to 15% of the remaining policy premium.
Can I change insurance companies in the middle of a claim?
If you are unhappy with your auto insurance provider, switching car insurance after an accident may be an option for you. You can discontinue your policy even if you have a current open claim or were at fault in an accident. In fact, you can seek a new insurance company anytime you are unhappy with your current policy.
What happens when you change insurers?
On transfer, insurers can reduce any annual benefit limits by the amount of benefit already paid to you under your previous policy during that year. Make sure the premium payments for your old policy are up to date. Ask your new insurer to start your new policy from the day after your old policy is paid up to.
Is there a cancellation fee for Progressive?
Is there a fee for cancelling Progressive? This varies by state and when you purchased the policy. In some states, Progressive will charge a $50 cancelation fee if you cancel within your first term; meaning your policy has not yet renewed. Once the policy has renewed there will no longer be a cancellation fee.
Can I cancel my car insurance if I'm not using my car?
Depending on your state's rules and insurer, you may be able to pause your car insurance if you won't be driving for an extended period. If putting a pause on your car insurance isn't possible, you can reduce your coverages or cancel your policy for the time you don't need it.
Does State Farm charge a cancellation fee?
State Farm's cancellation policy
State Farm doesn't charge a cancellation fee; you can cancel your coverage anytime. You can also receive a prorated refund if you have prepaid your insurance premiums.
Can I switch my auto insurance anytime?
The short answer is yes: You can make changes to your coverage any time throughout the year. Simply call your insurance agent. Policy changes usual take effect immediately.
When should I cancel my old car insurance?
When the sale of your vehicle is complete, you can contact your insurance company and cancel your policy. If you're buying a new vehicle, you can add it to your current policy instead of canceling it.
Are you penalized for switching insurance companies?
Insurance companies don't penalize you for switching your car insurance with an open claim. Stay in contact with your previous insurer until the claim is settled. Keep in mind some claims can have an impact on your rates.
Does Allstate charge a cancellation fee?
Allstate doesn't charge fees for cancellation, but a cancellation could affect any ongoing claims or lead to the permanent loss of policy perks. Next, you should review your policy information (located on the My Account homepage), focusing on coverage limits, deductibles, and applicable discounts.
What happens when you switch car insurance?
Check for potential penalties
If you switch at the end of your policy term, there is unlikely to be a penalty, but some carriers may include one if you decide to switch in the middle of your coverage period.
Does State Farm run your credit?
Most major car insurance companies like GEICO, Progressive and State Farm factor in your credit score when giving you a quote. Some smaller, regional insurers skip credit checks, though their coverage options (and available online information) can be limited.
Is it better to buy car insurance online or with an agent?
Buying insurance online can often result in lower customer costs due to the elimination of commission fees for the insurance agent. However, buying insurance through an agent can offer a more personalized experience and in-depth policy analysis, leading to finding the most cost-effective coverage options.