Switching Auto Insurance: Mid-Year Changes

Yes, you can change your auto insurance plan at any time, whether you've had your current policy for a few weeks or a few years. You can either adjust your current policy or switch to another provider. However, it's important to have a new policy lined up before cancelling your existing one and be aware of any related fees.

Changing your insurance policy

You can change your auto insurance policy at any time, whether you want to adjust your current policy or switch to a new provider. It is recommended to shop around for the best policy and price for your needs and to have a new policy in place before cancelling your old one. You should also be aware of any cancellation fees or penalties that may apply.

Making changes to your policy:

If you want to make changes to your current policy, such as adjusting coverage limits or adding a driver, you can call your insurer's customer service or speak to your local agent. Minor adjustments, like adding or removing vehicles or drivers, can often be made through your insurer's website or mobile app. Policy changes usually take effect immediately, and you may be required to pay for any increase in your premium upfront.

Switching insurance companies:

You can also switch insurance companies at any time. Many insurers will allow you to cancel for free, but some charge a fee, so it is important to check with your current insurance company. When switching, it is recommended to compare at least three insurance companies and consider providers with discounts relevant to you. You can also use a quote comparison tool to find the best price. Once you have found a new policy, schedule it to begin at least one day before your current coverage expires to avoid a lapse in coverage, which could result in penalties.

Reasons to change your insurance:

There are several reasons why you may want to change your insurance policy. This includes significant life events, such as marriage, relocation, a change in employment status, or adding a teenage driver. You may also want to change your policy if you are unhappy with your current insurer's customer service or claims handling, or if you want to take advantage of lower rates offered by another insurer.

Steps to switching insurance:

• Shop around and compare quotes from multiple providers.
• Find the best policy for your needs and budget.
• Purchase your new policy before your old one expires to avoid a lapse in coverage.
• Cancel your previous insurance and request a refund for any unused portion.
• Obtain proof of your new insurance, such as an insurance ID card.
• Inform your lender of your new insurance coverage, if applicable.

Switching insurance providers

Yes, you can change your auto insurance plan whenever you want – you don't have to wait until the end of the year or the policy renewal period. The most common ways to change your car insurance coverage are by adjusting your current policy or switching to another provider.

If you're thinking of switching to a new provider, here are some steps to follow:

• Consider your coverage options: Research the different types of insurance and the amount of insurance you need. For example, minimum coverage might not be enough if you're found to be at fault in an expensive accident. If you have a newer car, you may need to buy optional collision and comprehensive insurance to cover repairs. On the other hand, if you drive an older car, you may not want to pay for full coverage.
• Check for potential penalties: Check with your current insurer to see if there are any penalties for switching mid-way through your policy. If there is a penalty, you may save money by waiting until your policy is up for renewal.
• Compare car insurance quotes from multiple carriers: Get quotes from at least three auto insurers to compare premiums, coverage options, and discounts. Make sure you're getting quotes for the same coverage types and limits so you can accurately compare premiums.
• Contact your current carrier: Before switching, consider talking to an agent at your current company. They may be able to identify new discounts or savings opportunities to lower your premium.
• Research the new company: Price isn't the only factor to consider when choosing a new insurer. Review other metrics such as customer service scores, financial strength ratings, and available coverage options and discounts.
• Avoid a lapse in coverage: Ensure there is no gap between the end of your old policy and the start of your new one, as this could mean you're driving without insurance for a short period. Ask your old company for a statement in writing confirming the end date of your policy, and choose a start date for your new policy that matches.
• Cancel your old policy: Contact your agent or insurance company to notify them that you're terminating your policy. If you signed up for automatic payments, you may need to log in to an online account and cancel the auto-withdrawals. Ask for confirmation of the termination in writing.
• Access your new car insurance ID cards: Once you've cancelled your old policy and started your new one, switch out your old insurance ID card for an updated one. Your new insurer will likely send you a physical copy, and may also provide a digital version via email or mobile app.

Cancelling your old insurance policy

• Arrange a new insurance policy first: Before cancelling your old policy, make sure you have a new one lined up to avoid a lapse in coverage. This is crucial, as driving without insurance is illegal in most states and can result in fines, license suspension, or even repossession of your vehicle.
• Contact your current insurance provider: Get in touch with your insurance company to inform them of your intention to cancel. Most companies will require you to speak with an agent, either over the phone, through their website or mobile app, or in person at a physical location.
• Be aware of cancellation fees: Depending on your insurer and your state, you may be charged a cancellation fee for ending your policy early. This fee is usually subtracted from any refund you may be owed.
• Request a cancellation notice: Ask your insurer for a written confirmation that your policy has been cancelled. This will ensure you have documentation of the cancellation, which can be useful if any issues arise.
• Understand the refund process: If you've paid for your policy in advance, you may be entitled to a prorated refund for the remaining months of coverage. However, this may be subject to cancellation fees and other terms and conditions set by your insurer and your state.
• Inform relevant parties: If you've financed or leased your vehicle, you'll need to notify the lender or lessor of the change in insurance. Additionally, if you're moving to a new state, you may need to provide proof of your new insurance policy when registering your vehicle at your new address.
• Reasons for cancellation: There are several valid reasons for cancelling your auto insurance policy, including switching to a new insurance company, moving out of the country, or being covered under someone else's policy.

Remember, it's important to carefully review your current policy and understand any fees or requirements before initiating the cancellation process. By following these steps, you can successfully cancel your old insurance policy and transition to a new one without any gaps in coverage.

Getting a refund for unused insurance

Yes, you can change your auto insurance plan mid-year and may be entitled to a refund for the remaining time on your policy. However, this depends on the reason for cancellation and whether you paid your premium in advance. If you paid for the full year upfront, you will likely get a refund for the remaining months. If you pay monthly, you may or may not get a refund, depending on when you cancel.

If you cancel your policy voluntarily, you should be entitled to a full refund of the remaining premium, minus any deductions for the time you have been insured. For example, if you paid $300 for a six-month policy and cancel after one month, you will get approximately $250 as a refund. However, some companies charge a fee for early cancellation, so always read the policy closely.

If your insurance company cancels your policy due to non-payment or serious violations, such as a DUI or too many accidents, you will not be eligible for a refund and may still owe the company money.

To cancel your policy, contact your insurance agent or customer service, who will make the changes effective immediately. You may be required to pay any increase in your premium upfront. Some insurers will require written notice of cancellation.

If you switch to another insurance company, you may be charged a cancellation fee by your original insurer, which could offset your refund amount.

Adjusting your current policy

If you want to make changes to your auto insurance policy, you can do so at any time throughout the year. You can make adjustments to your auto policy whenever you wish and don't have to wait until the renewal time. You can make rolling changes throughout the year and just pay for the portion you use. For instance, if you have two months left on your annual policy and add coverage, you'll only pay for two months' worth of that coverage.

You can adjust your current coverage or switch to another insurer to take advantage of lower rates. You can make changes to your existing policy, such as adjusting coverage limits or adding another driver. To do this, call your insurer's customer service number or speak with your local agent. For minor adjustments, like adding or removing vehicles or drivers, you can often make these directly through your insurer's website or mobile app. In most instances, policy changes will take effect immediately, although you may be required to pay for any resulting increase in your premium upfront.

You can also raise your deductible or lower your coverage limits to save money. If you want to change your deductible or liability limit, this can often be done with a quick phone call. If your insurer's office is closed, you can call their customer service line to speak to a live representative who can help. Any changes you specify will be in force by the time you hang up.

If you're buying a new car, you don't need to call your insurer right away. You're covered when you drive off the lot and usually have up to 30 days to notify them so they can add the vehicle to your policy.

Frequently asked questions