When should I switch car insurance companies?

You may want to change car insurance companies if you become a high-risk driver or have an at-fault claim. You can switch car insurance companies at any time, but you may be subject to fees for canceling a car insurance policy early. If you're wondering if you should switch, start comparing car insurance quotes online now to find an affordable rate.

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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 19, 2021

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Here's what you need to know...

  • Car insurance companies are losing their clients because they are finding better deals from other companies
  • Insurance companies are offering new clients deals to increase the numbers of people who switch coverage to them
  • Older clients are often used to offset the losses the companies are sustaining when they give new people lower rates

The ability to switch car insurance companies ensures that drivers cannot be taken advantage of by their companies.

Representatives of these companies know that there is a real possibility that they will lose their clients in significant numbers if they give their clients reason to switch.

Even so, people do have reason on occasion to switch car insurance companies.

Be sure to enter your ZIP code into the FREE tool above to compare car insurance rates instantly!

Certain Events Qualify Drivers for Higher Rates


When car insurance companies are losing their clients to a large degree, they may find any reason they can to raise the rates of their loyal customers.

Several things that would cause clients’ rates to increase:

  • Causing an accident
  • Receiving multiple traffic tickets
  • Receiving a DUI
  • Filing claims

Older clients may have given their car insurance companies reason to raise their rates, but they do not have to remain with the company if their rates are being raised to such a degree that the cost is prohibitive.

Even though these people may have had difficulties over the year, other car insurance companies will be able to offer better rates because these other companies need new clients.

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Faulty Claims Process

Insurance claims binder

After drivers have been with their car insurance companies for a time, they may have had occasion to file a claim and discovered that they did not like how the process went.

These clients may have paid their premiums on time and expected their car insurance companies to follow through, but they were forced to wait while their companies performed delay tactic after delay tactic.

They may even have had their claims denied when they believed they should not have been.

When people are not being treated well, they consider switching to another car insurance company.

The important thing to know is how current clients feel about the coverage they are receiving.

In the process, find a car insurance company that offers its clients better service, and you could have a reason to switch to another company.

National Car Insurance Companies Fail to Suit Their Needs


Sometimes drivers are not satisfied with how their car insurance companies handle their customer service.

National car insurance companies may not have a local presence in everyone’s cities, so these clients do not have the possibility of contacting the same person every time they call the company.

In this case, these clients have the choice of switching to a smaller, local car insurance company.

When seeking quotes from a comparison website, people will receive rates from national companies as well as local agencies.

If they choose an agency that is local with an agent that they can contact anytime, they may find that it is time to switch from their current car insurance companies to the new agency.

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It May Be Enough Just to Lower Their Premiums

Drivers do not have to have any specific reason to switch their car insurance companies other than to lower their car insurance premiums. Their current car insurance companies may not have raised their rates.

As a matter of fact, their premiums may remain the same when it is time to renew, but they would like to see if they can be quoted a lower rate by another company.

The people described above can also take advantage of the comparison website to learn what other car insurance companies may charge them.

If they receive quotes that are significantly lower than their current premiums, they can negotiate with their current companies for a better price or they can just switch their coverage.

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Compare Several Quotes before Switching Companies


People are required to purchase car insurance but they are not forced to purchase it from any one car insurance company.

They are free to switch their coverage from one company to another if they receive a better deal.

The most efficient way of finding a car insurance company with better rates is to use a comparison website.

Anyone can take advantage of this option and receive several free quotes any time they like.

Enter your ZIP code now and we will help you find value car insurance by providing you multiple car insurance quotes.


  1. https://www.cbsnews.com/8301-505144_162-51420355/car-insurance-save-money-by-switching/
  2. https://www.kiplinger.com/slideshow/insurance/T004-S001-factors-that-raise-insurance-premiums/index.html
  3. https://www.consumerreports.org/cro/2012/04/insurance-claims/index.htm
  4. https://www.alllaw.com/articles/nolo/auto-accident/when-why-insurance-claim-denied.html
  5. https://www.consumeraffairs.com/insurance/car.html
  6. https://blog.aisinsurance.com/2013/07/03/how-often-should-you-compare-auto-insurance-quotes/#.WDEz_fkrKUk

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