Do companies charge fees or increase your rate if you change insurance companies often?

I've had three different carriers in the last year and a half. I'm considering switching again midway through a term. Does this impact my rate? Would I have a lower rate if I didn't switch as often?

Answer
“The only time you may be charged a fee for switching car insurance companies is if your current company charges a cancellation fee.
When you cancel or change policies midterm, some insurance companies charge a fee. The amount varies so should check your policy terms and conditions before canceling.
Beyond this, your rate shouldn’t be influenced as long as you maintain insurance continuously. Even if you have a lapse of a day, your insurance rate can be impacted. To avoid any rate increases, be sure to always start your new policy before cancelling your old one. While some companies offer discounts for loyalty, you can save more money shopping around every six to 12 months.
If you want to save money on car insurance, the Jerry app is a good place to start. 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 cancel your old policy for you.”
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Emily Maracle
Answered on Sep 10, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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