Take charge: How to easily switch car insurance

Take charge: How to easily switch car insurance

If you’ve ever hesitated to switch car insurance because it seemed complicated or risky, you’re not alone. Many drivers assume the process is time-consuming and paperwork-heavy, but that’s no longer the case. With a little preparation and the right timing, switching car insurance is typically far easier than it sounds.

How to approach switching auto insurance

When you start thinking about switching auto insurance, you want to follow an organized process to make sure you and your vehicle are always covered.

1. Determine why you want to switch

Is your current policy getting more and more expensive? Do you feel like you don’t have enough insurance and are potentially open to coverage gaps? Figuring out why you want to switch is important because it helps you know what to look for in a new policy. Take the time you need prior to your decision to define your goal and understand why it is you want to make the switch.

2. Start gathering quotes

Once you know what you are looking for in a new auto insurance policy, you can start researching insurance providers and getting free quotes. This process is easier than you might think, though you will need to make sure you have information about you and your vehicle ready. You might be asked to share:

• Basic vehicle details, like your VIN and mileage
• Personal information (like a driver’s license) for anyone who will be listed on the policy
• The preferred start date for the new policy

In most cases, getting quotes from auto insurance providers is risk-free and will not impact your credit score or your current insurance policy. Get a couple of quotes from different providers and compare their terms and coverage amounts. You will want to select the policy that makes the most sense for your unique situation.

3. Set up your new policy

Once you’ve picked the best auto insurance policy for you, activate your new coverage by paying your initial premium and saving your confirmation email. With your new car insurance in place, you can confidently cancel your old policy and enjoy improved protection.

4. Cancel your old policy

You can cancel your previous policy at any time, but to avoid any gaps in coverage, it’s best to cancel your policy after you have new coverage confirmed. While there are some companies that will cancel your old policy for you, many times you will need to call or go online to cancel your coverage.

Depending on when you cancel your existing policy, you may get a prorated refund based on your payment schedule and how much of your insurance coverage you had paid ahead. For example, if you paid $600 for a six‑month policy and cancel after three months, you may be eligible for a refund of roughly $300 for the unused coverage.

Common concerns when switching auto insurance

Many of the most common concerns about switching auto insurance fall into just a few categories, and most are easier to address than people expect.

1. Coverage gaps: If you begin a new policy before canceling your old policy, your vehicle will always be protected.
2. Losing money when switching: Even if you have already paid for a full policy that doesn’t end for months, you may still be able to cancel and get a prorated refund for the length of the policy that was prepaid.
3. Difficult processes: Switching insurance used to be a headache, but today’s technology makes it easier than ever. You can likely do the entire process completely online without ever having to pick up the phone or make an in-person appointment.

Next steps made easy

Ultimately, switching car insurance has become one of the easier parts of owning or leasing a vehicle! If you aren’t happy with your current coverage, take a look at the options available to you. It’s likely you will find something that fits every single one of your needs.

Want to get started on switching? General Motors Insurance is committed to making the auto insurance process simple. Visit gminsurance.com to get a free quote and learn more about how you can stay safe on the road, wherever you’re headed.

By Lincoln Edgemon, GM Financial

Lincoln learned how to drive in a GMC Sierra and has been a fan of large vehicles ever since. She's committed to clarity in communication that helps others on their journey toward financial literacy.