Switching car insurance providers may sound like a hassle, but it could save you hundreds of dollars a year — and give you better coverage in the process. In fact, nearly half of drivers in 2024 considered switching insurers, according to J.D. Power, as rising premiums pushed policyholders to shop around.
The good news? You’re not locked into your current policy forever. You can switch car insurance at any time, as long as you do it strategically to avoid gaps in coverage or unnecessary fees. Below is a step-by-step guide to switching car insurance, along with the best and worst times to make the move.
Step 1: Review Your Coverage Needs
Before shopping around, take stock of what you currently have:
- Liability insurance (covers others in an accident you cause)
- Collision (covers your car if you hit another vehicle)
- Comprehensive (covers theft, fire, or natural disasters)
Ask yourself: Do your current coverage amounts still fit your lifestyle, or do you need adjustments? For example, if you bought a new car, you may want more protection. If you’ve paid off your vehicle, you might choose to scale back on certain coverages.