How to Switch Auto Insurance Providers Without Losing Coverage

Switching auto insurance providers can be a strategic move to save money or gain better coverage, but it requires careful planning to avoid any lapses in protection. Ensuring continuous coverage is essential to stay compliant with state laws and to protect yourself financially in case of an accident.

Steps to Switch Insurance Providers

Here are some steps to help ensure a seamless transition between auto insurance providers:

• Evaluate your current coverage. Before making any changes, review your existing policy. Understand what types of coverage you have (e.g., liability, collision or comprehensive), your deductibles and any additional benefits. This will help you identify what you need in a new policy and avoid paying for unnecessary extras.
• Compare quotes from multiple providers. Gather quotes from various insurance providers. Look at the premium costs, coverage limits, deductibles and customer service ratings. Ensure the quotes match or exceed your current coverage to avoid being underinsured. Use online comparison tools or consult with an insurance broker to find the best options.
• Check for cancellation fees. Prior to canceling your current policy, check if there are any cancellation fees or penalties. Some insurance providers may charge a fee if you cancel before the renewal period, while others might refund a prorated amount. Knowing these details will help you plan your switch more effectively.
• Schedule your new policy to start before canceling the old one. Timing is crucial when switching insurance providers. Ensure your new policy starts before your current one ends to avoid any gaps in coverage. Ideally, have the new policy begin the day before, or on the same day your current policy ends. This overlap can ensure continuous protection and compliance with state laws.
• Inform your current provider. Once your new policy is in place, notify your current insurance provider of your decision to cancel. Provide them with the effective cancellation date, which should align with the start date of your new policy. Some providers may require written notice, so check their specific requirements.

Learn More

Contact Select Insurance to discuss your auto insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.