Car driving on road with pine trees all around


If you’re wondering if it’s bad to switch insurance companies, you’re probably dissatisfied with your current provider. But is your fear warranted? You’ve probably heard all of the horror stories about people getting hit with fees when they tried to switch their car insurance. Can that happen to you?

Luckily, you don’t have much to worry about when switching insurance companies. Here’s everything you need to know to successfully change your auto insurance plan to another agency.


Why Do People Switch Insurance?

There are plenty of motives behind changing your insurance provider, but most of them boil down to a single reason—personal preference. That said, here are a few different reasons why an insurance customer may want to switch their insurance:



In their new state, they would have to pay double what they used to pay on car insurance. And since they likely won’t use their car as much, they may decide to change to a policy that allows them to only pay for the months they need a car.




When this happens, many will jump ship to an insurance provider that a friend or the general public has had a good experience with.



The Pros and Cons of Switching Car Insurance

Having car insurance is always beneficial (for starters, it’s illegal to drive without it). But just like any big decision, there are pros and cons to switching your auto insurance coverage to another company. Here are the big things you should consider when weighing this decision.







The Best Times to Switch

When considering an insurance provider switch, there are several instances that offer more advantages. The best times to switch insurance packages include:







What Questions Should I Ask When Looking for New Car Insurance?

Woman sitting in front of laptop talking on phone
There are a handful of essential questions everyone must ask when shopping for a new insurance plan. You should be able to get a direct answer about most of these questions from insurance agents, so make sure you ask them:


What’s a Good Rate on Car Insurance?

Different states have different average rates for car insurance. For example, California drivers pay an average of around $1,800 a year for full coverage, while Texas drivers pay an average of up to $1,692 a year. On the other end of the spectrum, Maine drivers only pay an average of $889 each year.

To get a better idea of what auto insurance in your state is like, check out our state directory.


Does Switching Car Insurance Affect Credit?

No, switching your car insurance will not affect your credit. Many people fear their credit scores are affected when switching because many states allow insurance companies to view credit scores. However, this kind of check is a “soft pull”—an inquiry that doesn’t damage your credit score. As such, it’s not bad to switch car insurance companies as it will not affect your credit score.


Do I Get a Refund If I Cancel My Auto Insurance?

It depends. While it is possible to get a refund after canceling an auto insurance plan, it is reliant on a handful of factors.




Switch Your Insurance Today

As you can see, it’s not bad to switch insurance companies. In fact, it might even be a good idea. Looking for a more affordable and reliable insurance provider? Consider what Cheap Insurance has to offer. We try to offer some of the highest quality insurance at the best price point possible. Contact Cheap Insurance today!