1. Shop around before your renewal date
Before your policy comes up for renewal each year, your insurance company should send you a renewal package outlining your coverage, deductibles and total premium, which may change year over year. Take this opportunity to start comparing the total cost of your policy with other providers—just be sure you're comparing apples to apples when it comes to coverage types, insurance amounts and deductibles.
2. Online quotes aren't binding
If you get an online quote that seems like a better deal from a different insurance company, don't terminate your existing policy right away. While an online quote is a quick and convenient way to get a rough idea of costs, it's important to compare the premium, deductibles and coverage against your existing policy before switching.
For example, upon closer examination, you might find that two similar looking policies differ significantly when it comes to exclusions. One might exclude certain types of water damage or restrict coverage for personal valuables. Understanding what isn't covered helps you avoid unpleasant surprises if you need to make a claim.
Also worth considering: lower premiums often mean higher deductibles. If you're looking to reduce your annual premium, ask yourself whether you'd be comfortable paying the deductible out of pocket if you had to make a claim.
Before changing insurers, request a detailed quote to ensure you have all the information you need to choose a policy that meets your needs.
3. Your existing discounts could be impacted
Many insurance providers offer discounts for bundling your home and auto insurance or insuring multiple vehicles. If you’re only planning to switch over one policy, you may lose access to these savings.
4. Make sure your coverage is up to date before shopping around
If it's been a while since you reviewed your policy, your coverage probably doesn't reflect your actual needs. Maybe you still have an additional driver listed on your policy that no longer uses your car, for example, or maybe you've had an addition built or completed renovations on your home. Modifying your existing policy to ensure it matches your current needs is the best place to start before shopping around.
5. Rates don't tell the whole story
While it's tempting to save as much as possible when it comes to your insurance, you'll want to think about value rather than simple cost savings. Does the new provider you're considering have a good reputation for claims service and customer support? Do they offer the coverage types that best suit your needs? Do they offer maximum limits on certain coverages? Remember that compromising on your coverage can be costly. That's why it's important to choose a company that offers the right level of protection and support for your needs.
6. You may have to pay cancellation fees
If you want to switch insurance providers before your policy is up for renewal, you may have to pay a cancellation fee. So factor that in to make sure the savings you're earning by switching are greater than the cost of cancelling. If they're not, you may want to wait until your renewal date to make your move.
7. Watch out for a gap in coverage
When transitioning between policies, it's crucial to ensure that your new policy takes effect immediately after your old one ends. If it doesn't, you may not be covered if you're involved in an accident or need to file a claim during this period.
8. Other financial institutions need to know if you switch
If you have a mortgage or a car loan, maintaining insurance coverage is usually mandatory, so you'll need to share your new proof of insurance with your lienholder (the lender financing your car or home).
9. Check whether group auto and home insurance is available
If you're part of an eligible employee group, association or alumni network, you could benefit from exclusive rates on home and car insurance through providers like us.
How to change insurers in 6 steps
- Review your current coverage to understand what's included and what's not, check your renewal date and cancellation terms.
- Compare insurance quotes beyond the price, paying close attention to inclusions, exclusions and deductibles.
- Choose a policy with coverage that fits your needs.
- Confirm the start date for your new insurance, making sure there aren't any coverage gaps.
- Cancel your old policy, making sure your new policy is active (get written confirmation beforehand).
- Notify your lender or other lienholder if insurance is required for your mortgage or financing.
The bottom line
At the end of the day, switching insurance companies can be the right decision for you, as long as you shop around for something that suits your needs. If you're insured with us and are considering cancelling your policy, please review our cancellation guide or reach out to us directly for one-on-one support at 1-888-476-8737.
Thinking of switching to us?
Discover our different products and coverage options. And check if your employer or organization has partnered with us. You could unlock exclusive group insurance rates.