Can you change your car insurance plan mid-year?

Changing your insurance plan mid-year is possible as your insurance company cannot prevent you from switching companies. However, they may impose a fee for early cancellation.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 20, 2021

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Here's what you need to know...

  • Can you change your auto insurance plan? It is possible to switch insurance companies and policies mid-term
  • Your current car insurance company cannot prevent you from switching to a different company, but they may impose a fee for early cancellation
  • If you plan on switching, make sure your new policy is active before you cancel your old policy
  • Use a comparison tool to quickly and easily find and purchase a new policy

Is it time to tell your car insurance company good-bye?

Switching car insurance can save you money and provide you with better customer service, but you may be hesitant to switch in the middle of your current car insurance policy period.

In reality, you shouldn’t be worried.

Switching car insurance companies is as easy as finding a new policy via a comparison tool, purchasing that policy, and canceling your old policy after your new one is active.

Start comparison shopping today by using our FREE online quote tool! Enter your ZIP code above!

Reasons to Switch Car Insurance Companies Mid-Term

The biggest reason people switch car insurance companies is for lower rates, but there are other reasons you should consider.

  • Better rates – Car insurance companies each use different mathematical formulas to calculate risk. Different calculations mean that a different car insurance company could have your exact same policy for a cheaper rate.
  • Better coverage – Imagine getting better coverage for only a few more dollars each month. It could happen if you shop for a new policy by using a comparison tool, which allows you to quickly read through policies and look at their prices.
  • Better customer service – Researching other auto insurance companies could lead to you finding a company with better customer service.
  • Better discounts – There are a few new discounts available to drivers, including accident forgiveness and diminishing deductibles. Shopping for a new policy allows you to find an insurance company with better discounts and incentives for being a safe driver.

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How to Switch Car Insurance Companies


Do you have to cancel car insurance when you switch? Since car insurance is required in almost every state, you can’t simply call your agent and cancel or stop paying your bill.

If you cancel or stop paying, that could lead to a gap in your insurance coverage and significant penalties when you try to purchase another policy.

Instead, you should follow these steps to safely switch your car insurance.

  • Call your insurance agent – The first step to switching car insurance involves calling your agent to find out if there are any fees for canceling early and to determine the proper way to cancel your policy. Some insurance companies require written notice or an in-person visit in order to cancel.
  • Locate a new policy – You can find a new policy that is comparable or better than your old policy by using an online comparison tool. Online comparison tools allow you to search the car insurance policies from multiple different carriers, allowing you to evaluate their prices and the benefits and drawbacks of each new policy.
  • Read the fine print – Before you purchase a new policy, make sure you read the fine print. The fine print includes the coverage amounts and any exclusions. If you are getting a car insurance policy with a deductible, make sure you can always afford to pay the deductible.
  • Determine which policy would best benefit you – After reviewing all the policies and researching the individual insurance carriers, choose your new policy based on all the available information. Don′t simply choose the policy with the lowest premium.
  • Purchase your new policy – Before you cancel your old policy, you must purchase a new policy and determine when it becomes effective. After you are certain that your new policy is active, you can cancel your old policy.
  • Cancel your old policy – Call, write, or visit your old insurance agent to cancel your old policy and make sure it is canceled. They should send you a letter in the mail after you cancel. You should also tell your agent that you found a new policy.

Switching car insurance policies mid-term is easy when you are fully informed and know the proper steps to take.

In general, you want to avoid a lapse in your insurance policy even if it is for a single day. Avoiding a lapse in your coverage may mean carrying both policies for a day or two until you can confirm that you are covered.

However, that shouldn’t be a huge problem, especially if your new policy is saving you money.

If you are looking to ave money by finding affordable auto insurance rates, start comparison shopping by entering your ZIP code below!



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Enter your ZIP code below to view companies that have cheap car insurance rates.

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