Can I change my car insurance coverage at any time?

As your needs in life change, you may need new levels of protection. But when you want to know how to lower your car insurance rate, you may also want to know whether you can change your car insurance coverage anytime.

We understand that you may be worried and want to do the right thing, and we’ll provide answers below.

Can I change my car insurance coverage at any time?

No rules prevent you from changing your car insurance whenever you want. So, if your circumstances change and you want a different type of coverage or a better deal, you can ask your insurance company or agent for more information. You won’t need to wait until your policy renews to make any alterations.

When should I make changes to my car insurance?

There are many reasons why you might want to make some alterations. For example:

• You may no longer want comprehensive car insurance coverage on an older vehicle with a much lower value.
• You may have married and want to cover both vehicles at once to save money by bundling insurance policies.
• You may have moved into your own home and want to see if you can save by bundling your home and car insurance.
• You may have moved to a new area and want to see if your new address may lead to lower premiums. Some companies use your ZIP code to help them work out your car insurance rates, and it may also make a difference if you park the vehicle in a garage.
• If you have retired and will no longer commute to work, so you may save by finding a car insurance company for infrequent drivers.

It’s a relatively simple process if you want to change your insurance, or even swap companies.

Contact your insurance company or agent and discuss your situation. Tell them why you would like to reassess your coverage levels and ask for a new quotation. Of course, if you want to swap insurance companies, you can also do this at any time, but you should consider some of the factors below before you decide.

What should you consider before you switch car insurance companies?

Sometimes, it may be better to stick with your current company. For example:

• You may no longer qualify for accident forgiveness that you built up due to a period without claims.
• You may lose a loyalty discount.
• You should see if you can get the same incentive with the new company, such as bundling discounts.

However, you may switch companies even after considering these other factors. And don’t forget that if you switch now, you may be immediately penalized for recent accidents or tickets. Otherwise, you may be able to wait until your current policy renews before that penalty kicks in.

Read more: What happens if I let my car insurance policy lapse?

How to Switch Car Insurance Companies

If you want to switch car insurance companies, you should follow this procedure:

• Compare the offers available from different companies by talking to your agent.
• Gather the documentation together (such as driver’s license and registration).
• If you’re financing a vehicle, let the lender know.
• Cancel your current insurance policy and talk with the company to see if you are entitled to a refund.

Be careful to ensure no lapse in coverage should you switch companies. Otherwise, this could impact the amount you pay in the future, as some companies use a “gap” as a rating factor.

Read more: What is the process for transferring car insurance to a new car?

Case Studies: Changing Car Insurance Coverage

Case Study 1: Sarah’s Change in Marital Status

Sarah recently got married and wanted to update her car insurance coverage to reflect her new marital status. She contacted her insurance company and requested a change in her policy to add her spouse as a covered driver. The insurance company adjusted her coverage accordingly, taking into account the new risk factors associated with having multiple drivers on the policy.

Case Study 2: Mark’s Relocation to a New Area

Mark moved to a new city and realized that the rates for car insurance in his new area were significantly higher than his previous location. He decided to explore his options and contacted different insurance companies to compare quotes.

After obtaining several quotes, Mark found a company that offered more affordable rates for his new area. He made the decision to switch his car insurance coverage to the new company and saved money on his premiums.

Case Study 3: Lisa’s Reduced Mileage

Lisa recently retired and no longer commuted to work daily. As a result, she was driving significantly fewer miles per year. She contacted her insurance company and informed them of her reduced mileage. The insurance company adjusted her policy to reflect the lower mileage, resulting in a reduction in her premiums.

What must I know if I want to change my car insurance coverage?

You can change your car insurance coverage anytime and do not need to wait until your policy renewals. You may want to do this if you move to a new area, get married, and want to combine policies or lower your annual mileage.

If you want to change insurance companies, be careful that you do not lose access to any discounts or may no longer qualify for accident forgiveness.