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Is it Easy to Switch Car Insurance Providers?

When comparison shopping car insurance rates, you'll quickly realize how easy it is to save money by switching companies - but is it really that easy to switch?

Thankfully, the answer is YES!

Switching car insurance providers is relatively easy and painless as long as you do it right.

The vast majority of car insurance providers allow you to cancel your policy at any time by sending written notice stating the date of cancellation.

When switching to another insurer, make sure there is no lapse in your coverage. You should make the starting date of your new policy overlap with the cancellation date of your old one.

A word of caution: When canceling your current insurance policy, it is very important that you send them a written notice as stipulated in the contract.

Failure to do so will cost you money and can hurt your credit.

Don't ever assume that your policy is automatically cancelled if you don't pay your next premium. If you don't give formal notice, they will bill you for the next payment and your credit will be affected if you don't pay.

Although it's very easy to cancel your car insurance policy, you should consider a couple of things before doing so.

If you've been with the same insurer for a long time, it's likely that you have a long-time customer discount in place.

But more importantly, your insurance company may cut you more slack if you have an accident or get a moving violation.

If you won't be saving a considerable amount by switching and you have been with the same insurer for more than 5 years, it's probably not worth it to switch.

3 Steps Every Car Buyer Needs to Take to Save Maximum Money

The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:

Step 1 Get Prices From My Trusted Network

Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Select Vehicle to Get Local Pricing

Step 2 Get Prices From TrueCar / CarsDirect

TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.

Step 3 Complete my Checklist

Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan

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About The Author

Gregg Fidan Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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