How to Switch Car Insurance in 6 Steps

Switching car insurance may sound daunting, but with a bit of preparation, you can easily transition to a new car insurance policy that fits your budget and needs. 

Drivers tend to switch insurance for different reasons. For instance, a Texas driver might be looking to reduce their premium or find a company with better coverage and customer service. 

Read on to see how you can change insurance carriers in six easy steps and what you should keep in mind when doing so. 

Can you switch car insurance at any time? 

A good time to reassess whether you should switch insurance providers is when your policy is up for renewal or at least once a year, depending on your budget. 

You can switch at any point, however, due to a variety of reasons. Common reasons you may be looking to switch car insurance providers: 

• Your premium has increased. 
• You bought a new car. 
• You want to find a better claim process or customer service experience.   
• You’ve had a new life change. For example, you may have moved, gotten married, or may want to add a teen driver to your policy. 

Make sure your new policy begins before the old one ends to avoid any coverage gaps. Most states, including Texas, require liability coverage. Your insurance fees may increase even with a gap as short as a day. 

What you need before switching 

When you are ready to start switching car insurance carriers, having the following items handy will make the process more efficient: 

• Your current policy details, such as coverage levels and expiration date. You can check on your insurance verification card, on your provider’s member portal, or on their app.  
• Your driving record information, which lists accidents or violations, if any. 
• Your vehicle information, including its VIN (Vehicle Identification Number) and mileage. 

If you’d like more information about how to switch insurances or which options are available to you, your local Agencia de Seguros de Accesso, LLC and Access Insurance Agency of Nevada, LLC (both known as A Abana) agent can help. 

Changing car insurance in 6 steps 

1. Get Quotes from other insurance providers 

When searching for a new car insurance carrier, you’ll want to see which provider offers affordable rates. Their customer ratings will also let you know how satisfied current clients are with their customer service and how they resolve claims.  

If you’ve been a long-time customer with your current insurance, the new company may offer you a loyalty discount when you switch. Conversely, your current company may search for available discounts if you speak to your agent about wishing to cancel. 

You’ll also want to check if your current insurance company charges cancellation fees. 

2. Choose the right coverage for you 

After shopping around for policy options, choose a an auto insurance plan that will protect you in the long run. Lower premiums may mean that your out-of-pocket costs may increase in the case of an accident or event such as theft. 

While “full coverage” tends to cost more, it can lower future costs with fewer out-of-pocket expenses. (“Full coverage” typically includes liability, comprehensive, and collision coverages.) 

In Texas, liability insurance is required. The liability coverage needed in this state is known as the 30/60/25 coverage. This means that under Texas law, you’re required to carry $30,000 coverage for bodily injuries per person with a limit of $60,000 coverage per accident, and $25,000 coverage for property damage per accident. 

3. Apply for your new policy 

After choosing a car insurance company and policy, confirm its start date. Your new policy should start at least a day before your old one expires. This is because most states have fees or penalties for having an uninsured vehicle.  

In Texas, lacking liability insurance or not having established financial responsibility can result in fines from $175 to $350, according to the Texas Transportation Code. Fines for repeat offenders are higher. Such gaps in coverage can also result in higher premiums later. 

4. Cancel your old policy after the new one is active 

Talk to an agent at your new company, and they can help you schedule coverage before your old policy ends. As stated above, a gap in coverage of even one day can have consequences. Get confirmation in writing from your new company that states the start date of your new coverage. 

If your old policy is not up for renewal yet, speak to your previous car insurance company about any refunds you may be entitled to or cancellation fees you may have to pay. 

5. Notify your lender or leasing company (if applicable) 

If your car is financed, contact the leasing company and let them know of the change in insurance. Your old insurance company usually notifies the lender, but it’s good to confirm.  

Ensure they are listed on your new policy as well. Most leasing companies require “full coverage,” so check with your lender to make sure you meet their insurance requirements. 

6. Print or save your new insurance ID cards 

To register a vehicle, change your license plates, or if you get stopped by an officer or are involved in an accident, you’ll need to show proof of insurance.  

Your new company will give you a copy, which you can keep in your wallet or have a copy inside your vehicle. Many insurance companies now have apps, so you can also download a copy onto your phone, for easy access in case you don’t have cellphone service. 

However, some states require a printed copy of your proof of insurance, so make sure you check your state laws before choosing which version you need. 

What to Watch Out For 

Before finishing this process, there are a few things to keep in mind: 

• As stated above, check to see if your old insurance company charges any cancellation fees. 
• Confirm the dates of your new and old insurance. Overlapping policies will mean you are paying double. 
• If you have an SR-22 form or a “certificate of financial responsibility,” speak with an agent to better understand your options. 

Why work with a local insurance agency? 

Working with a local agent gives you access to personalized help. Especially if you’ve had no prior coverage, have a limited driving history, or recently moved, an experienced agent can help you smoothly change your car insurance. 

A Abana agents understand Texas driving laws and coverage needs. We have 20+ carriers and our agents at our Texas or Nevada locations can help you compare quotes and save time.  

Call A Abana at 214-764-8868, visit one of our stores throughout Texas or Nevada, or get a free auto insurance quote online. 

Disclaimer:  

This material is for general informational purposes only. The products, services, and discounts referenced herein are not available in all states or from all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all cases, the actual language of the policy contract prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions, and exclusions may apply.