About 25 percent of drivers stay with the same car insurance company for 16 years or more.
But what about those drivers who decide that switching car insurance is a necessary step? What reasons do they have for leaving their car insurance company?
It goes without saying that customers usually switch insurance companies to get cheaper car insurance
. Read on to find the five most commonly cited reasons why drivers change insurance companies, with help from car insurance comparison and broker app Jerry
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Rising prices and increasing car insurance premiums
The large number of car insurance companies keeps competition between them high, resulting in lower prices for the savvy consumer.
If you notice your insurance costs creeping up over time as a result of inflation, accidents, or a new car purchase–among other causes–then it might be time to consider switching car insurance.
Car insurance companies know that prices rise over time, so competitors can take advantage of your rising premiums by offering a lower rate. You get a lower rate, and they get a new customer. If your rates are rising, it may be time to search for new car insurance.
MORE: Checklist for switching car insurance companies
Switch car insurance for better customer service
Poor customer service can cause even the most loyal customer to throw up their hands in frustration, especially when they've had an accident and need immediate help. Dealing with slow, unhelpful, or unresponsive reps may mean it’s time to think about switching car insurance.
Car insurance companies usually aren't excited to file claims, so if they have an opportunity to deny you coverage, they'll take it. This can lead to tense customer-carrier relationships.
When searching for a new insurance company, remember to read reviews online about each company’s response time for claims and the overall friendliness and helpfulness of the customer service reps.
A change in driving status
A new event in your life may require you to consider switching car insurance. Whether you add a new driver to your vehicle policy, buy a new car, get married, or move, your rates may go up, so it’s important to periodically assess the premiums you pay.
For example, adding a teen to your policy or moving to a more populated area, like New York City or Los Angeles, can result in a big rate increase.
Before switching to another insurance company, call your car insurance provider first to see if they can offer any rate discounts to accommodate your new circumstances. You can save yourself the hassle of looking for new coverage if they do.
Auto insurance benefits vs cost
Loyalty programs and other driver perks make a difference when comparing auto insurance companies. Many insurers, including State Farm
, Nationwide
, and Allstate
offer drivers a discount for staying with the company for several years or for being accident-free for an extended period of time. When the costs of the insurance outweigh the benefits of staying with a particular company, policyholders tend to switch to an insurer that can give them more for their money. So check every six to 12 months with your insurer and others to make sure you’re getting the best deal.
In addition, check with your auto insurance company to see if they offer any programs to reduce your current rates. A few such programs include discounts for driving a vehicle with certain safety features, such as airbags, anti-lock brakes, electronic stability control, and tire pressure monitoring systems.
You can also find discounts by taking a defensive driving course
either online or in person at the DMV
, as well as by parking your vehicle in a garage. Change car insurance from referrals
If a trusted friend or family member tells you about a superior car insurance company, take a few minutes to check them out online. And if you do switch, some companies give both you and the person who referred you a one-time discount or gift card incentive. Other incentives for switching car insurance include entrance into a draw or discounts on future insurance renewal fees.
Many insurance companies do not place restrictions on the number of referrals you make, and some companies, such as Allstate and Progressive
, give you credit even if the person does not ultimately purchase a policy. Switching car insurance companies can reduce your costs and get you some special perks, so if you aren't completely satisfied with your current provider, it might be time for a change.
If you’re looking for a new car insurance
company, Jerry
can provide you with competitive quotes in under a minute. A licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy. And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
FAQs
Can you switch car insurance at any time?
Yes, you can switch car insurance companies at any time. You will need to check your policy to see if there are any cancellation fees, however. You also may not get a refund for any unused premium, so it might be better to wait until after your six-month policy period runs out.
Some carriers have a cancellation fee, while others won't offer unused premium refunds. Check with your policy to see if switching car insurance is right for you.
If I switch car insurance, do I have to pay?
There's no fee for switching car insurance itself, but you might have to pay a cancellation fee from your old provider.
Is it bad to switch insurance companies?
You shouldn't be switching car insurance companies every few months, but there's nothing wrong with switching every now and then. Just keep in mind that you might miss out on certain discounts when you switch, such as loyalty discounts.
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