Skip to main content

Auto Insurance Switching Simplified: Find the Optimal Time to Change 

Wooden blocks from A to D, concept of comparing 4 different insurance plans when switching.

If you’re not satisfied with your current insurance, you may wonder when the best time is to change plans or providers. Switching insurance companies can result in serious savings while giving you the coverage you need. Exploring the process of securing better car insurance requires a certain level of strategy, however, so below you’ll learn how to get maximum savings on your auto insurance while still being fully covered. 

Navigating the Insurance Switching Landscape 

Regularly exploring different options is one of the best ways to keep your premiums as low as possible. Here are a few of the basics to understand before you begin the switch. 

Understanding Insurance Portability 

Portability refers to your ability to switch from one insurer to another. Sometimes, you may be able to carry over benefits from your old provider to your new one, such as bonuses for not making a claim for a certain period of time. Moving your policy from one provider to another involves communicating with both your previous and upcoming insurers about the change. Many insurers offer similar policies so you can have consistent coverage throughout the transition from one provider to another. 

Evaluating Your Current Coverage 

Regularly assessing your policy ensures that you’re both getting a good deal and maintaining the protection you need. Here are a few questions to ask when reviewing your coverage: 

  • Do I need liability or full coverage? 
  • How much is my deductible? 
  • Do I want any additional coverage? 
  • Am I getting any discounts? 
  • When was the last time the cost of my policy increased? 

Timing Is Key: When to Make Your Move 

If you’re thinking about switching car insurance companies, it’s important to be thoughtful about timing. The most important factor to consider is when your current policy ends. You want to make sure you secure a new plan before your policy lapses to ensure that you’re fulfilling any legal obligations and keeping your vehicle fully covered. Check your policy documents to see when your plan ends and start looking for new policies a month or two before the final date of your coverage. 

However, you don’t have to wait for your policy to end before you secure a new policy. Most car insurance companies have six-month terms, but you can notify your insurer that you want to cancel your policy early. This lets you take control of your coverage if you find a better policy or want to swap your coverage at a certain time of year. Just check the terms of your policy to see if you must give your insurer a certain notice period for early cancellation. 

Identifying Opportune Life Events for Switching 

Certain types of coverage, such as health insurance, have strict requirements about when you can sign up. For example, you may only be able to enroll in medical coverage if you have a qualifying life event, such as getting a new job or losing your employment. Open enrollment in the health insurance marketplace also only takes place for a certain amount of time. However, you can cancel or register your car insurance at any time. 

The best time to switch car insurance ultimately depends on your preferences. One of the optimal times to consider switching is when refinancing your vehicle or buying a new car. You’ll need to get a new plan when switching cars regardless, so it’s a good time to explore what other companies have to offer. 

Senior woman compares two car insurance policies to see if she should switch.

Seasonal and Financial Factors Affecting Your Choice 

There isn’t a certain time of year when car insurance prices are at their lowest. However, some people think that the end of the year is the best time to look for a new policy, as some insurers may reassess their rates at the start of the new year. 

Another factor that affects car insurance rates is your age. Your rates can drop significantly after you turn 25, so you may want to explore other policies after your 25th birthday. If you’ve kept a clean driving history through your early years behind the wheel, your rates should drop significantly. If you’ve gotten a few bumps along the way, seeking out insurance companies that specialize in high-risk drivers may be a good choice. 

Switch Smart: How to Switch Insurance Companies 

The auto coverage plan you choose can have a serious impact on both your monthly expenses and the potential costs of an accident. Here’s a breakdown of the key steps you need to take when making a strategic switch to a new policy: 

  1. Compare car insurance quotes from multiple insurers. 
  1. Review plan options to ensure you’re getting comparable coverage. 
  1. Reach out to your chosen insurer about setting up your policy. 
  1. Ask about any discounts for good driving history or other factors. 
  1. Contact your current insurer to inform them that you’re ending your policy. 
  1. Make sure your new coverage starts at the same time your old coverage ends. 
  1. Keep a copy of your new plan information in your vehicle. 

The Benefits of Reviewing Your Insurance Regularly 

By exploring different policies on a regular basis, you can keep your premium costs as low as possible. Even if you find that your current provider offers the best deal, you can feel more confident in your choice by researching other options. Make a habit of exploring other policies once a year or every six months before your policy renews. 

Is It Bad to Switch Car Insurance Often? 

You may wonder if it is bad to switch car insurance often, but ultimately, changing policies regularly can be beneficial. Many car insurance companies offer discounts to incentivize new drivers to switch to their company. This can often mean that staying with your current insurer is more expensive than switching to a new provider.  

Regularly getting quotes from other options is a great way to make sure your insurer is offering the best possible deal. You may even consider reaching out to your current provider and letting them know you have cheaper quotes available to see if they can offer you any sort of discount or deal. 

Ready to Switch to Affordable Car Insurance? Get a Free Quote Today 

As you explore your options, be sure to get a quote from Freeway Insurance to find an affordable policy that meets all your requirements. Head to your local Freeway Insurance location to meet with one of our knowledgeable representatives, call a team member at 800-777-5620, or reach out for an online quote so we can help you find the right policy today. 

Ready to Get a Quick Quote?