How to switch insurance companies in 4 simple steps

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How to switch insurance companies in 4 simple steps

Yes, it’s true: Switching insurance providers does involve a number of steps that can often make it feel like more trouble than it’s worth. To go about it, you need to research a new policy, compare current and new options, and communicate with both the old and the new insurer (and we know how many of you hate the phone). It’s no wonder, then, that 21% of Americans believe switching insurance providers to be a difficult process. 

So why go through the trouble? Well, there are real benefits to switching up your policy. While sticking with your current insurance company may have its merits, you might consider switching your current policy if another company offers more coverage or saves you money on your insurance premiums.

And the good news is that you can actually shop for and switch your insurance policy any time, whether you purchased your current policy a week, a month, or a year ago. Asking for quotes from other insurers annually is actually a great habit to get into. 

So yes, while switching insurance providers sounds time-consuming and overwhelming at first glance, it doesn’t have to be! In this article, we’ll discuss the reasons that motivate policyholders to switch insurance companies, and how to make a successful move from old to new — without the headache. 

Why Switch Insurance Companies

“Why shake things up?” you might be wondering. Well, there are a number of factors that might play into your decision to shop around, such as:

  • Increased rates
  • Decreased coverage
  • Major life changes (moving, marriage, etc.)
  • New family member
  • New home or car purchase
  • Negative customer experience

Regardless of your reason, it’s important to know the right steps to take to find a new insurance company.

How to Switch Insurance Companies

So let’s say you’ve decided to change policies: what comes next? Here are a few things to keep in mind to help you find the right insurance company that offers you optimal coverage at low rates.

Compare Quotes

First, you definitely want to compare quotes from several different insurance companies. As a rule of thumb, we recommend you get insurance quotes from at least three insurance providers when switching your insurance company. 

Besides checking out the rates themselves, you’ll want to look into policy features like the deductible, coverage type, and duration. While this may sound like a lot of work, there are a number of automated insurance comparison tools (including Marble’s!) that can help you easily compare the details of homeowners, renters, or car insurance policies. 

Research Companies

Insurance rates aren't the only thing you’ll need to consider when comparing policies and buying auto insurance, home insurance, renters insurance, or any other type of insurance. Evaluating coverage benefits is also key to choosing the right insurance provider. 

Take a look at how the new coverage compares with your current coverage. If the coverage is lousy, it doesn’t matter how low your insurance premiums are — you’ll probably end up just switching again. 

Then check out the new insurance company itself. Is this an established company? What are their reviews like? Are there customer complaints? What is their claim settlement rate? Affordability doesn’t count for much if the insurer isn’t available around the clock or fails to offer satisfactory services when you file a claim. 

A new company might also offer perks, discounts, and freebies when you switch. For example, State Farm offers car insurance discounts on a clean driving record, Geico comes with nation-wide full coverage at lower rates, and Allstate gives you plenty of coverage options alongside loyalty discounts. Find out what makes the most sense for you and your situation. And of course, you’ll want to consider those perks and discounts in the broader context of the company’s rates, coverage, and customer service.

Feeling overwhelmed? We’ve got you covered! Marble’s comparison tool has everything you need to review insurance policies from different companies. Not only can you shop for a new policy within the Marble platform, you can also review insurance coverage benefits. You can, for example, compare car insurance quotes with ease to avoid spending more money down the line. 

We know your time is precious, so using an insurance comparison tool will help you avoid wasting hours jumping between multiple insurance portals. You’ll get quotes and policy details from multiple insurance companies all on one screen. Taking the time to compare options upfront will give you the info you need to find a policy that offers the best bang for your buck (which is to say: the best coverage options at the lowest price).  

Avoid Coverage Gaps

The number one thing to remember is that you should do your absolute best to avoid a coverage gap. So we highly recommend (nay, implore!) that you switch your policy before your old one expires to ensure you’re always covered. Before you cancel your current insurance policy, make sure that the new policy is in effect in order to keep your assets protected. 

Having continuous coverage could have the added benefit of saving you money on insurance with the new provider. Progressive, for instance, awards policyholders a continuous insurance discount if they purchase a new car insurance policy from Progressive without any coverage gap. 

Before you make the big switch, don’t forget to contact your current insurance provider to see whether they’ll match the rates or coverage you’re seeing with another provider. If your current company isn’t able to match, ask them about the cancellation process (more on that to come!). 

And if you do end up switching to a new insurance provider, you’ll want to update your insurance ID cards too. With the exception of New Mexico, every state gives you access to a digital ID card, which you can download on your phone.

Cancel Your Old Policy

Once you have a new policy in place, you absolutely, 100% want to make sure you cancel your previous policy. If you’re considering just not paying the premiums on your old policy instead of canceling: think again! Canceling a policy is much better than not paying your remaining insurance premiums, since that can negatively affect your credit score in the long run. 

We can’t stress this enough: Failure to cancel your old insurance is bad bad bad. Not only will your old policy provider continue to bill you, but you’ll also be reported for failing to pay your premiums. To protect your credit score, review the cancellation policy for your current policy provider and triple check that you meet all requirements. 

Then, mentally prepare yourself for cancellation fees, should any arise. That being said, you are in fact more likely to get a refund for the remaining duration of the policy (twist!) if you choose to cancel your old insurance before the expiration date. Follow up with your previous insurance agent in case of any delays to your reimbursement.  

And one final note for folks who are switching car insurance providers: If you have a loan or lease on a new car, remember to inform your lender about the cancellation and switch. Your financing company has some percentage of the stake in your car, so they will want to ensure that the vehicle is covered by auto insurance. To cover yourself, ask your new auto insurance provider to share proof of insurance with you *and* with your lender and leasing company.

Switch Insurance Companies with Marble

While it may seem daunting, switching insurance companies doesn’t have to be that hard. Now that you understand what to look for and compare (like the policy terms, claim settlement and open claim rates, coverage limit, and mid-policy cancellation fee), you’re in a great position to choose the best insurance policy for you. 

And Marble is here to help! Use your Marble account to compare insurance quotes and select the one that provides the most coverage at the best rates. Sign up today to join Marble’s reward-based membership program, which was designed to save you money on each and every insurance policy.