How to switch car insurance without a gap in coverage
Switch car insurance the safe way: compare matching quotes, start the new policy, then cancel the old one so you're never without coverage.
Updated 4 min read
Stu can do this for you. Join the waitlist for early access.
To switch car insurance, buy your new policy first, set it to start on the day you want to leave your old insurer, and only then cancel the old policy. Doing it in that order means you're never driving uninsured, even for a day, which matters because a gap in coverage can lead to higher rates later.
How to switch car insurance, step by step
Pick your timing. Switching at renewal is often the cleanest option. You can usually switch mid-term too, but ask your current insurer about its cancellation policy and whether there's a fee for leaving early.
Gather your details. Grab your current declarations page (it lists your coverages, limits and deductibles), driver's license numbers for everyone in your household who drives, your vehicle identification numbers, and your lender's details if the car is financed or leased. Include every household driver when you ask for quotes. The NAIC warns that leaving someone off can lead to a cancellation or non-renewal if that driver has an accident.
Compare matching quotes. The Insurance Information Institute suggests getting at least three quotes. Make sure each one uses the same coverages, limits and deductibles as the others. If they don't match, the NAIC suggests asking the companies for revised quotes so you're comparing like with like.
Check the company, not only the price. Before you buy, confirm the insurer is licensed in your state and look at its complaint record through your state insurance department. Ask friends and family how their claims went, too. The cheapest quote isn't always the best value.
Give your current insurer a chance. Before you leave, call and ask whether there are discounts you aren't getting, such as bundling with home or renters insurance or paying by autopay. Staying might be cheaper once everything's applied.
Buy the new policy and confirm the start date. Make sure the new policy is approved and active, and write down the exact effective date and time. Get your new insurance ID cards (digital or paper) before your old coverage ends.
Add your lender or leasing company. If you have a car loan or lease, list the lender on the new policy and send them your new declarations page if they ask. Lenders usually require collision and comprehensive coverage. The Texas Department of Insurance notes that if that coverage lapses, your lender can buy coverage itself and add the cost to your loan payment.
Cancel your old policy. Contact your old insurer directly. New insurers typically can't cancel another company's policy for you. Set the cancellation date to match the new policy's start date, and ask for written confirmation. Don't rely on skipping a payment to end the policy, since that leaves the timing and the reason for cancellation out of your hands.
Collect your refund. If you paid ahead, ask how much unearned premium you'll get back and when. Some states set deadlines. In Texas, it's 15 days after cancellation.
Tidy up. Stop any autopay to the old insurer after the final bill, swap the ID card in your glove box or phone, and update anyone else who needs your insurance details.
Tips and gotchas
- An overlap beats a gap. A day of double coverage costs a little. A day with no coverage can mean higher rates later, and in some states more than that. In New York, for example, a lapse in liability coverage can lead to your registration and license being suspended.
- Watch your bundle. Moving only your auto policy could cost you a multi-policy discount on your home or renters insurance. Compare your total insurance cost, not one policy.
- Read the new declarations page. Check names, address, vehicles, drivers, coverages and discounts for mistakes before your first payment.
- Don't let a deductible surprise you. A higher deductible lowers your premium, but make sure you could cover it if you need to file a claim.
- Got a nonrenewal notice? Start shopping right away so the new policy is in place before the old one ends.
How Stu will help
Stu is in development, and you can join the waitlist now. When it launches, Stu will keep an eye on your renewal dates and premiums, help you line up quotes with matching coverage, and walk you through each step so nothing slips between policies. It will always ask before it contacts an insurer or makes a change for you.
Sources
- Washington Office of the Insurance Commissioner: Learn how auto insurance works
- NAIC: Comparing online auto insurance quotes
- NAIC: Best practices for buying auto insurance
- NAIC: A shopping tool for auto insurance (PDF)
- Insurance Information Institute: Nine ways to lower your auto insurance costs
- Insurance Information Institute: Renewing your homeowners or car insurance policy?
- Texas Department of Insurance: Auto insurance guide
- New York DMV: Insurance lapses
- Progressive: How to switch car insurance companies
Common questions
Can I switch car insurance at any time?
Generally, yes. You can usually switch in the middle of a policy term, but your old insurer may charge a cancellation fee depending on your policy and state. Ask about fees before you cancel, or switch at renewal.
Do I get a refund if I cancel my car insurance early?
If you paid ahead, you're usually owed the unused (unearned) part of your premium, minus any cancellation fee your policy and state allow. In Texas, for example, insurers must refund unearned premium within 15 days of cancellation.
Will my new insurance company cancel my old policy for me?
Usually not. Canceling the old policy is typically your job. Once your new policy is active, contact your old insurer, set the cancellation date, and ask for written confirmation.