How To Switch Car Insurance Companies

You should switch your car insurance to a different company when you can find a cheaper rate for the same amount of coverage without sacrificing in terms of things like customer service. It's actually best to compare quotes and consider switching insurance companies every 6-12 months in order to minimize costs. It's also worth checking prices anytime you have a change in circumstance that will affect your rate, such as insuring a new car or adding a new driver.

When to Consider Switching Car Insurance Companies

When You Add a New Driver

Adding a teenager to your insurance policy costs 140% to 160% extra, on average. On the other hand, adding an experienced driver could increase or decrease your premium, depending on the exact scenario. As a result, it's well worth shopping around before simply accepting a new rate from your current insurer.

When You Reach a Threshold for Age or Experience

Car insurance rates vary dramatically by age, with particularly sharp drops when a driver turns 19 and 21 years old. Similarly, when a driver has been on the road for at least five years, they will usually be able to get a lower rate.

When You Add or Replace a Car

The cheapest insurer for an older car might not be the cheapest for a brand new car or a specialty vehicle, since each insurer calculates rates differently. If you're adding a vehicle, you should also factor in any multi-car discounts that are available from different companies.

When Your Driving Record Changes

If you were recently cited for a moving violation, each insurer will adjust your rates by a different amount, so switching could make sense. Similarly, some insurance companies will look back at only three years of your driving history, while others will evaluate a longer period. As a result, it's a good time to shop around for a better price when violations or claims reach the three-year milestone. Getting a copy of your driving record and your CLUE Report can help you time things right.

When Your Credit Score Improves

Your credit score can be a major factor in car-insurance pricing. If it has improved, let your current insurer know and then see if other companies can beat your insurance company's price.

When Your Insurance Needs Change

Financing a new car or paying off a loan may change the coverage types you need to carry. You may also want to reevaluate your policy limits and deductible.

When Your Marital Status Changes

Married drivers usually pay less for car insurance than single drivers, so make sure to notify your insurance provider about your nuptials. You should also take the opportunity to see if another insurer will offer a lower premium.

When You Become a Homeowner

Your status as a homeowner rather than a renter can affect your premiums. Insurers often charge lower premiums to homeowners, and you can also get a multi-policy discount if you insure your home and car with the same company.

When Your Education Level or Employment Changes

Earning a college degree will lower your rates with some insurers more than others. Some companies also offer a low-mileage discount, which could benefit you if you get a new job with a shorter commute.

To cancel a Geico insurance policy, the policyholder must call Geico to speak directly with a customer service agent. Customers cannot cancel their policies online or through the Geico mobile app. You may cancel your Geico insurance policy at any time. The cancellation can be made effective immediately or set for a future date. Geico does not charge a cancellation fee.

How To Cancel Your Geico Policy

There are a few easy steps to cancel your Geico insurance policy by phone. First, get your Geico policy number ready. Next, call Geico at 1-800-841-1587. When you are prompted by the interactive voice response system, say “cancel insurance policy” and then “auto,” if you're canceling your car insurance policy. Finally, you will be connected to a customer service agent, who will walk you through the cancellation process.

Before the cancellation is complete, you must pay off any remaining balance on your account. If you've already paid your entire premium for the policy period in full, Geico will refund the unused portion.

Things To Consider Before You Cancel Your Geico Policy

Keep in mind that you do not have to cancel your policy just because you're going through some life changes. For example, if you've moved or replaced your current vehicle, Geico can simply update the mailing address or vehicle information on your policy. Geico also allows military members to suspend their policy temporarily if their vehicle will be left unused and in storage for more than 30 days.

On the other hand, if you wish to cancel because you're switching to another auto insurance carrier, be sure to obtain a new policy before canceling your current one. This helps to prevent a lapse in coverage, which could potentially lead to higher premiums down the road.

To cancel a Progressive insurance policy, call 1-866-416-2003 to speak with a representative and arrange for the cancellation to take effect immediately or at a future date. You can't cancel Progressive insurance online, but you can cancel over the phone at any time.

How to Cancel Progressive Insurance

1. Call 1-866-416-2003 to inform Progressive about your desire to cancel.
2. Provide the date you want the cancellation to go into effect.
3. Purchase a replacement insurance policy that takes effect prior to cancellation, to avoid a lapse in coverage.
4. Pay any necessary cancellation fees.
5. Confirm that you receive a refund for unused premiums.

Progressive says you will be refunded the money you paid in advance for coverage you won't use. Unfortunately, they don't give details about how they pro-rate refunds or whether they charge any cancellation fees. 

Progressive Insurance Cancellation Fees

Customers report a range of experiences with Progressive's cancellation fees. Some were charged 10% of their outstanding premium, while others paid a flat rate of $50 to $65. Many say they paid no fees at all.

The amount you have to pay to cancel Progressive insurance coverage depends on a few factors, like state laws where you live, how far into the policy term you are, and how often you pay your premium. Check your Progressive policy or speak with customer service to confirm what fees (if any) you'll have to pay before you cancel.

How to Decide When to Cancel a Progressive Insurance Policy

It's a good idea to shop around for car insurance and compare quotes from different companies. But make sure you don't lose more in fees by switching policies mid-term than you gain in lower premiums.

It's usually easiest to wait until the end of your policy period to switch insurers—just make sure you have a new policy in place before you cancel with Progressive. Driving without insurance can have serious consequences, and a lapse in coverage of any length can make future rates more expensive.

No, it's not bad to switch car insurance companies often. Switching insurers can be a great way to save on your car insurance premium, though it's important to remember that you may be charged cancellation fees each time you switch companies mid-policy.

Progressive, Travelers, and Liberty Mutual are the only companies among the 10 largest insurers that charge cancellation fees, though smaller companies like AAA and Auto-Owners also have fees. If your insurance company charges a cancellation fee, then it's probably best to wait until it's time to renew your policy to switch insurers. 

If you decide that you want to switch insurance companies mid-policy, you need to contact your current insurer and let them know instead of simply not paying your premium. Even if you paid for your policy in full up front, you should still officially cancel the policy so that you can get a prorated refund.

To learn more, check out WalletHub's guide to switching car insurance companies. 

To cancel State Farm insurance, the policyholder must call customer service at 1 (800) 782-8332, send a formal notice in writing, or cancel in person at a State Farm office. You cannot cancel a State Farm insurance policy online.

The cancellation can be arranged for a future date or set to take effect immediately. You will need your policy number, name, address, phone number, and plate forfeiture if you sold your car.

Ways to Cancel State Farm Insurance Policies

• Cancel by phone by calling 800-STATEFARM.

• Cancel in person by taking your policy number, name, address, phone number, and plate forfeiture if you sold your car to your local State Farm agent.

• Cancel by mail by writing a letter that includes your policy number, name, address, phone number, and plate forfeiture (if you sold your car), plus the date and time you want your policy to end. Sign, date, and mail your letter to: Corporate Headquarters of State Farm Insurance / One State Farm Plaza / Bloomington, IL 61710.

• If you would like to switch agents instead of canceling your State Farm policy, you can email [email protected] or call 800-782-8332.

Key Things to Know Before You Cancel Your State Farm Policy

If you've already paid your premium for the policy period in full, State Farm will refund the unused portion. State Farm does not impose a cancellation fee or penalty for early termination.

It's important to remember that you don't need to cancel your policy just because you're going through some life changes. For example, you should have State Farm update your mailing address or vehicle information if you're moving or buying a new car.

If you're canceling your current policy in order to switch to another company, be sure to activate your new policy before canceling the old one. This prevents a lapse in coverage, which would lead to higher premiums in the future.

The best way to get cheaper car insurance is to compare quotes from multiple companies and then switch to whichever insurer offers the coverage you want at the cheapest rate. Other ways to get cheaper car insurance include taking advantage of discounts, improving your driving record, and raising your credit score.

10 Ways to Get Cheaper Car Insurance

1. Compare quotes every 6-12 months.

Every car insurance company calculates premiums slightly differently, so the quote you get from one company can easily be hundreds of dollars more expensive than another company's quote. Getting quotes from multiple insurers every time you need to renew your policy can help you realize if you're overpaying for the same amount of coverage. 

2. Take advantage of discounts.

All major car insurance companies offer a variety of discounts, which can save drivers as much as 35% in some cases. For instance, many insurers offer multi-policy and multi-car discounts, as well as good student and good driver discounts, and more.

3. Increase your deductible.

Raising your deductible will lower your premium, though it's important to choose a deductible amount that you can afford in an emergency. A car insurance deductible is an amount that you have to pay out of pocket before your insurer will cover the rest. Deductibles apply to several types of coverage, including collision and comprehensive insurance.

4. Improve your credit score.

Insurance companies use credit-based insurance scores, where allowed by state law since studies have shown that these scores effectively indicate a driver's likelihood of filing a claim. Given that insurance scores are based on credit report information, raising your credit score can help reduce your rate over time.

5. Consider usage-based insurance.

Usage-based insurance is a type of car insurance that calculates your premium based on your driving habits. Each company's usage-based program varies, but most consider your total mileage, braking, acceleration, and speed. These programs are ideal for safe drivers, especially those who do not use their cars for long commutes or frequent trips. 

6. Choose a car that is inexpensive to insure.

Cars that are particularly fast, powerful, and/or costly to repair are among the most expensive to insure. Insurers also charge higher premiums for cars that are more likely to be stolen. The next time you go car shopping, compare insurance quotes for different models in advance with this in mind. And if your premiums are prohibitively expensive now, consider trading in your vehicle for a car that is cheap to insure.

7. Take a defensive driving course.

In some states, insurance companies are required to give you a discount for completing a defensive driving course. Even where it isn't mandatory, insurers will sometimes provide a discount to encourage customers to improve their driving techniques.

If your insurer does not lower your premium just for taking a course, working on your driving skills will still pay off in the long run and help you keep your record clean. On that note, certain states also allow you to take a course in order to prevent driver's license points from affecting your car insurance rates.

8. Consider your coverage types and amounts.

All the different types of car insurance can make it difficult to determine what exactly is worth paying for. At a minimum, you need to fulfill your state's requirements and also purchase any coverage your lender or lessor requires. But beyond that, you can weigh whether each add-on coverage option is worth the price.

For instance, maybe you should drop uninsured motorist property damage insurance from your policy if you already have collision insurance. Or maybe you don't need rental reimbursement coverage anymore because you could borrow a family member's car if needed.

9. Practice good driving habits.

Moving violations like speeding tickets signal to your insurer that you are a risky driver, as do serious convictions like reckless driving. By driving safely, you can keep yourself safe and your premium low. If you have tickets or at-fault accidents on your driving record already, work on driving carefully from now on, since they will only affect your rate for a few years.

10. Check out local and regional companies.

Large car insurance companies spend billions on advertising every year, but smaller insurers may be able to provide the cheapest premiums in some cases. So, when you're shopping around, make sure to compare quotes from companies of all sizes. You can use WalletHub's cheap car insurance guide as a starting point. Just click on your state to compare the cheapest insurers.

Car insurance premiums are based on drivers' individual risk factors as well as the coverage types and limits they choose. Check out WalletHub's full guide on the factors that affect car insurance rates for more information.

To cancel Allstate, the policyholder must contact their agent directly or call customer service at 1 (877) 810-2920. Your agent may ask you to submit a written request for cancellation. The cancellation can be arranged for a future date or set to take effect immediately. You will need your name, address, phone number, policy information, and the date you would like your policy to end.

• Cancel by phone by calling your agent or 800-255-7828.
• Cancel by mail by writing a letter that includes your name, address, phone number, policy information, and the date you would like your policy to end. Sign, date, and mail your letter to: Allstate Insurance Company / PO Box 660598 / Dallas, TX 75266.
• Cancel in person by taking visiting your local Allstate agent.

If you've already paid your premium for the policy period in full, Allstate will refund the unused portion. Allstate does not impose a cancellation fee or penalty for early termination.

It's important to remember that you don't need to cancel your policy just because you're going through some life changes. For example, you should have Allstate update your mailing address or vehicle information if you're moving or buying a new car.

If you're canceling your current policy in order to switch to another company, be sure to activate your new policy before canceling the old one. This prevents a lapse in coverage, which would lead to higher premiums in the future.

To cancel a Nationwide insurance policy, contact your agent or call 877-669-6877 if you do not have an agent. The earliest a Nationwide insurance cancellation would go into effect is midnight the day the request is made. Customers also have the option to cancel at a future date. Nationwide Insurance does not charge a cancellation fee.

Nationwide Insurance Cancellation Process:

1. Call 877-669-6877 or contact your agent.
2. Provide your account number, policy number or agent number, along with your name, date of birth, address, and desired date of cancellation.
3. Wait for an email confirming your policy's cancellation. You should receive it shortly after your conversation with the agent.
4. Receive a refund for the prorated portion of your policy that will not be used.

As Nationwide prorates its insurance premiums, it refunds any prepaid days of coverage that would go unused after cancellation. If you paid by credit card, you will receive your refund within 3-5 business days. If you paid by checking/ACH, the refund can take 7-10 business days.

Remember, you don't have to cancel your policy if you are replacing a vehicle or moving to a different state. Nationwide can update your vehicle information or change the coverage types and limits on your policy. You may also be able to adjust your Nationwide Insurance policy if the vehicle is used less for a specified period. Where applicable, you can update your information by calling an agent or visiting your account page.

To cancel Farmers insurance, the policyholder must contact their agent directly or call customer service at 1-888-327-6335. The cancellation can be arranged for a future date or set to take effect immediately. You will need your name, policy number, and the date you want your policy to end.

• Cancel by phone by calling your agent or 1-888-327-6335.
• Cancel by mail by writing a letter that includes your name, policy number, and the date you want your policy to end. Sign, date, and mail your letter to: Farmers Customer Service / 6301 Owensmouth Avenue / Woodland Hills, CA 91367.
• Cancel in person by visiting your local Farmers agent.

If you've already paid your premium for the policy period in full, Farmers will refund the unused portion. Farmers does not impose a cancellation fee or penalty for early termination.

It's important to remember that you don't need to cancel your policy just because you're going through some life changes. For example, you should have Farmers update your mailing address or vehicle information if you're moving or buying a new car.

If you're canceling your current policy in order to switch to another company, be sure to activate your new policy before canceling the old one. This prevents a lapse in coverage, which would lead to higher premiums in the future.

To cancel AAA insurance, the policyholder must contact their agent directly or call customer service at 1-877-387-8378. The cancellation can be arranged for a future date or set to take effect immediately. You will need your name, policy number, and the date you want your policy to end.

• Cancel by phone by calling 1-877-387-8378.
• Cancel in person by taking your name, policy number, and the date you want your policy to end to your local AAA agent.
• You cannot cancel a AAA policy online.

If you've already paid your premium for the policy period in full, AAA will refund the unused portion. AAA may charge some customers a cancellation fee, though the company does not disclose specific details. Read the fine print of your policy or contact your local agent to find out if you'll be charged the fee.

It's important to remember that you don't need to cancel your policy just because you're going through some life changes. For example, you should have AAA update your mailing address or vehicle information if you're moving or buying a new car.

If you're canceling your current policy in order to switch to another company, be sure to activate your new policy before canceling the old one. This prevents a lapse in coverage, which would lead to higher premiums in the future.