- How much can you save by switching car insurance companies?
- Full coverage: Savings by state for comparing auto insurance quotes
- When to start shopping for new car insurance?
- Switching car insurance? Keep these things in mind
- Is it bad to switch auto insurance companies?
- Does switching car insurance affect credit?
- Can I change car insurance before renewal date?
- Let your insurer know you are shopping
- Consider how discounts compare among insurers
- Get the details before bundling your home and car insurance
- Your driving record may affect your eligibility for car insurance
- How to cancel your current car insurance policy?
- How to find the best car insurance company for you?
- Common mistakes to avoid when switching car insurance companies
- State car insurance rate comparison by company
- How to increase your car insurance savings
Switching car insurance companies can save you hundreds -- if not more than a thousand dollars. However, swapping companies takes some work, so many people don’t bother getting quotes from other auto insurance companies.
We recently conducted a survey of 3,725 people about whether they would switch car insurance. We found that 59% of drivers would change insurance companies to save $250 or more a year. And over a third of drivers would switch to save $50 to $100 a year.
Here’s how much those surveyed would have to save on car insurance to switch:
- $50/year -- 10%
- $100/year -- 24%
- $250/year -- 30%
- $500/year -- 18%
- $1,000/year -- 6%
- Over $1,000/year -- 5%
Only 7% said they wouldn’t switch auto insurance companies regardless of the savings.
We found that younger and middle-aged people are especially interested in switching companies if they can find savings. Eighty-five percent of younger drivers and 86% of middle-aged drivers said they would change insurance companies for a savings of at least $100.
Only 2% of younger drivers and 5% of middle-aged drivers said they would never change car insurance companies regardless of savings. Older drivers appear more set in their ways, with 13% saying they would not switch carriers to save money.
There are ideal times to look for a new policy and pitfalls to avoid and ways to multiply the savings. Here is everything you need to know about how to switch car insurance.
How much can you save by switching car insurance companies?
Drivers can save an average of 178% or $1,647 for full coverage by shopping for car insurance to find potential savings.
Insurance companies have proprietary systems for assessing risk factors and determining premiums. The differences in their systems can result in dramatic premium swings.
Your job is to find the insurance company that likes your risk factors the best. Switching to a different insurer can result in major price differences.
Carinsurance.com looked at the rates for a 2019 Honda Accord with full coverage to identify the savings drivers can expect when you switch car insurance companies in all 50 states. Rates were fielded from up to six major insurers for nearly every ZIP code in each state.
The average savings is the dollar difference between the highest and lowest rates received from insurers, on average, for each state’s ZIP codes.
Drivers in some states may save even more by shopping around. We found that Michigan has the highest potential for savings by comparing the highest and lowest rates.
The places where drivers can save money the most by comparing auto insurance quotes are:
- Michigan – $4,837
- Kentucky – $2,805
- D.C. – $2,731
- Delaware – $2,718
- New Jersey – $2,579
States where drivers save the least still can save about $1,000 annually:
- Alaska – $972
- Nebraska – $974
- Missouri – $1,026
- Utah – $1,077
- Iowa – $1,114
Full coverage: Savings by state for comparing auto insurance quotes
State | Average Rate | Average Highest Rate | Average Lowest Rate | Average $ Savings | Average % Savings |
---|---|---|---|---|---|
Michigan | $3,141 | $5,899 | $1,062 | $4,837 | 455% |
Kentucky | $2,368 | $3,749 | $944 | $2,805 | 297% |
DC | $2,188 | $3,773 | $1,042 | $2,731 | 262% |
Delaware | $1,921 | $3,738 | $1,020 | $2,718 | 266% |
New Jersey | $1,993 | $3,569 | $990 | $2,579 | 261% |
Nevada | $2,402 | $3,626 | $1,154 | $2,472 | 214% |
Connecticut | $2,036 | $3,029 | $689 | $2,340 | 340% |
Florida | $2,162 | $3,079 | $850 | $2,229 | 262% |
Rhode Island | $2,040 | $2,992 | $763 | $2,229 | 292% |
Texas | $1,823 | $3,065 | $997 | $2,068 | 207% |
Arizona | $1,783 | $2,742 | $702 | $2,040 | 291% |
New York | $2,062 | $2,799 | $824 | $1,975 | 240% |
Louisiana | $2,601 | $3,345 | $1,429 | $1,916 | 134% |
Illinois | $1,538 | $2,632 | $763 | $1,869 | 245% |
Georgia | $1,865 | $2,724 | $1,010 | $1,714 | 170% |
Pennsylvania | $1,700 | $2,496 | $785 | $1,711 | 218% |
Wyoming | $1,782 | $2,547 | $944 | $1,603 | 170% |
Colorado | $1,948 | $2,631 | $1,036 | $1,595 | 154% |
Massachusetts | $1,466 | $2,134 | $546 | $1,588 | 291% |
California | $2,125 | $2,593 | $1,052 | $1,541 | 146% |
Oregon | $1,496 | $2,362 | $837 | $1,525 | 182% |
Maryland | $1,816 | $2,558 | $1,044 | $1,514 | 145% |
West Virginia | $1,654 | $2,576 | $1,064 | $1,512 | 142% |
Montana | $1,963 | $2,605 | $1,111 | $1,494 | 134% |
Hawaii | $1,589 | $2,321 | $890 | $1,431 | 161% |
Arkansas | $1,763 | $2,447 | $1,036 | $1,411 | 136% |
Idaho | $1,285 | $2,078 | $673 | $1,405 | 209% |
Vermont | $1,410 | $2,212 | $812 | $1,400 | 172% |
New Mexico | $1,604 | $2,334 | $951 | $1,383 | 145% |
North Dakota | $1,577 | $2,324 | $949 | $1,375 | 145% |
New Hampshire | $1,086 | $1,999 | $664 | $1,335 | 201% |
Mississippi | $1,684 | $2,353 | $1,022 | $1,331 | 130% |
North Carolina | $1,425 | $2,064 | $767 | $1,297 | 169% |
Washington | $1,620 | $2,248 | $962 | $1,286 | 134% |
Wisconsin | $1,335 | $1,890 | $605 | $1,285 | 212% |
Alabama | $1,713 | $2,299 | $1,036 | $1,263 | 122% |
Kansas | $1,689 | $2,347 | $1,085 | $1,262 | 116% |
Minnesota | $1,619 | $2,262 | $1,013 | $1,249 | 123% |
Oklahoma | $1,815 | $2,376 | $1,127 | $1,249 | 111% |
Ohio | $1,191 | $1,781 | $537 | $1,244 | 232% |
Indiana | $1,266 | $1,894 | $672 | $1,222 | 182% |
Virginia | $1,196 | $1,927 | $712 | $1,215 | 171% |
Maine | $1,080 | $1,711 | $536 | $1,175 | 219% |
South Dakota | $1,643 | $2,213 | $1,062 | $1,151 | 108% |
Soutn Carolina | $1,653 | $2,118 | $986 | $1,132 | 115% |
Tennessee | $1,493 | $2,028 | $906 | $1,122 | 124% |
Iowa | $1,352 | $1,955 | $841 | $1,114 | 132% |
Utah | $1,492 | $1,877 | $800 | $1,077 | 135% |
Missouri | $1,798 | $2,152 | $1,126 | $1,026 | 91% |
Nebraska | $1,500 | $1,946 | $972 | $974 | 100% |
Alaska | $1,560 | $1,994 | $1,022 | $972 | 95% |
National average | $1,758 | $2,557 | $910 | $1,647 | 178% |
The average state rate is comprised by averaging premiums for 2019 Honda Accord, male driver age 30, with policy limits of 100/300/100 ($100,000 for injury liability for one person, $300,000 for all injuries and $100,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. The average savings is the dollar difference between the highest and lowest rates received from insurers surveyed, on average, for each state's ZIP codes. These hypothetical drivers have clean records and good credit. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle. Slight differences in some averages are due to rounding rates.
When to start shopping for new car insurance?
While a renewal notice may jog your memory to shop your car insurance, there are plenty of other life events that make it worthwhile to explore other insurance options.
Some life events that might spark a auto insurance company change include:
- Moving
- Adding or dropping a driver
- Seeing your credit rating change
- Getting a ticket
- Getting into an accident
- Buying a house
- Getting married
- Getting divorced
- Buying a new car
In these cases, you should consider making a car insurance comparison to assess quotes.
"It's always a good idea to shop around when you have a major change in your life, such as getting married or when your teens begin to drive," says Brandt Minnich, vice president of marketing at Mercury Insurance, based in Los Angeles.
For example, "Many parents expect to pay a little more when their kids begin driving, but they are often shocked when they see the actual cost," he says.
Adding a teen to your policy can easily double your premium, so it’s a great time to shop around for a better deal.
Let’s look into life changes that make shopping your car insurance a good idea.
Switching car insurance? Keep these things in mind
If you have decided to shop your insurance, you probably have a few questions about the process and what pitfalls you should avoid. Here is what you need to know about switching insurers.
Is it bad to switch auto insurance companies?
No, switching car insurance companies isn’t a negative as long as you find a company that will save you money and offers you sufficient coverage.
You also want to make sure switching companies doesn’t cause a lapse in coverage. Going without auto insurance for an extended time could result in you paying higher premiums once you get coverage again.
Does switching car insurance affect credit?
No, switching car insurance companies won’t hurt your credit. Comparing quotes doesn’t trigger a credit check like applying for a credit card, says Penny Gusner, senior consumer analyst for CarInsurance.com.
Those with bad credit usually pay more for car insurance than those with good credit. Insurers view a person’s credit history as a risk indicator. If someone has a poor credit score, insurance companies believe they may file more claims.
However, the simple act of getting auto insurance quotes won’t affect your credit.
Can I change car insurance before renewal date?
Yes, it’s possible to change car insurance companies even if you’re mid-policy.
Typically, all you need to cancel your auto insurance policy is to submit a signed cancellation request form. In some cases, it’s as easy as emailing your insurance agent that you wish to cancel your policies and the date you want the cancellation to take effect.
You may need to show proof of insurance policy with another company for your cancellation to go through.
Let your insurer know you are shopping
If it’s just price and not a bad claim or customer service experience that is prompting your switch, let your insurer know you will be shopping your coverage. Many insurance providers will work to keep your business. They may pull out some new discounts to help lower your premium.
If you already have new quotes, some insurers may match your new premium.
Not all car insurance companies are willing to do this and some may simply wish you the best. If you decide to move your insurance, in most cases, it’s best to move other policy types like homeowners insurance, too. That way, you can take advantage of bundling discounts, which can be significant.
Consider how discounts compare among insurers
You may gain discounts with a new insurer, but you may also lose ones with your old company.
“Your current insurer might give you a loyalty discount for being a longtime customer,” says Justin Herndon, an Allstate Insurance Co. spokesman.
"Consumers should keep in mind that they may lose such perks as accident forgiveness or vanishing deductible when they switch insurers, but in return may obtain lower rates and other perks," Gusner says.
While your new company may offer accident forgiveness and vanishing deductible, you might have to be a customer for several years to be eligible.
But the savings you see from switching insurers "could possibly more than cover any surcharge you may receive if you are in an accident without having accident forgiveness," she says.
Get the details before bundling your home and car insurance
While many companies offer discounts if you switch several types of policies, such as your auto insurance and homeowners insurance, you need to double-check with your new insurer.
"In some cases, a customer might have claims on one type of policy that could hurt the overall price when moved together with another product," Herndon says. On the other hand, "That difference could also be helped with a move to another company," he says.
The best advice is to run the numbers with bundling and without building to see which way results in a lower premium.
Your driving record may affect your eligibility for car insurance
Your driving record might not be squeaky clean, but in most cases, that shouldn't prevent you from changing auto insurers.
"Your ability to switch insurance companies most likely won't be impeded by infractions you may have on your record," Minnich says.
However, if you have a serious violation, such as a DUI, not all companies may be willing to offer you insurance.
How to cancel your current car insurance policy?
If you decide you want to cancel your insurance in the middle of your policy period, Minnich suggests obtaining your new coverage. Once it kicks in, immediately contact your current auto insurer to cancel that policy.
You'll typically need to request the cancellation in writing.
In many states, your insurer is required to report the cancellation to your state department of motor vehicles. That means you should have the proper insurance in place beforehand.
Once you cancel, you should automatically receive a refund from your previous insurer if you've prepaid and are owed money, Minnich says, but you might be charged an early cancellation fee.
How to find the best car insurance company for you?
Finding the best cheap car insurance includes doing research on other things than price.
Before switching insurers, make sure you thoroughly check out any new insurance company you’re considering. The majority of state insurance offices keep track of customer complaints, so check with your state office before switching.
Read online reviews, such as our 2021 Best Car Insurance Companies customer satisfaction rankings, and check their financial strength with A.M. Best. You may want to keep shopping if you see the same issue come up over and over in reviews (poor claim or customer service).
It’s never a good idea to choose an insurance company solely on price. Always check reviews. An insurance policy is not a bargain if you struggle to get a claim paid or get someone on the phone after an accident.
Common mistakes to avoid when switching car insurance companies
Avoid these mistakes that can make switching insurance companies a financial nightmare.
State car insurance rate comparison by company
Let’s take a look at the average policy costs for multiple car insurance companies in each state.
State | Company | Average Annual Rate |
---|---|---|
Alaska | State Farm | $979 |
Alaska | Geico | $1,075 |
Alaska | Progressive | $1,080 |
Alaska | Allstate | $1,304 |
Alabama | Geico | $759 |
Alabama | Mid Century | $1,172 |
Alabama | Nationwide | $1,197 |
Alabama | Allstate | $1,257 |
Alabama | State Farm | $1,572 |
Alabama | Progressive | $1,840 |
Arkansas | Geico | $980 |
Arkansas | State Farm | $1,165 |
Arkansas | Farmers | $1,176 |
Arkansas | Nationwide | $1,483 |
Arkansas | Progressive | $1,594 |
Arkansas | Allstate | $1,821 |
Arizona | Geico | $977 |
Arizona | Progressive | $1,047 |
Arizona | Farmers | $1,195 |
Arizona | State Farm | $1,392 |
Arizona | Nationwide | $1,719 |
Arizona | Allstate | $1,807 |
California | Geico | $944 |
California | United Financial | $1,128 |
California | Nationwide | $1,379 |
California | Nationwide | $1,756 |
California | Farmers | $1,932 |
California | State Farm | $1,967 |
Colorado | Geico | $813 |
Colorado | State Farm | $1,241 |
Colorado | Farmers | $1,516 |
Colorado | Progressive | $1,559 |
Colorado | Allstate | $1,889 |
Connecticut | Geico | $946 |
Connecticut | Nationwide | $1,254 |
Connecticut | State Farm | $1,463 |
Connecticut | Progressive | $2,026 |
Connecticut | Allstate | $2,462 |
Connecticut | Foremost | $2,478 |
DC | Geico | $713 |
DC | Progressive | $1,496 |
DC | State Farm | $1,518 |
DC | Nationwide | $1,977 |
DC | Allstate | $2,913 |
Delaware | Geico | $1,134 |
Delaware | Progressive | $1,333 |
Delaware | Nationwide | $1,492 |
Delaware | State Farm | $1,872 |
Delaware | Allstate | $2,398 |
Florida | Geico | $1,192 |
Florida | State Farm | $1,611 |
Florida | Progressive | $1,754 |
Florida | 21st Century Centennial | $1,972 |
Florida | Allstate | $2,584 |
Georgia | Geico | $762 |
Georgia | Nationwide | $1,303 |
Georgia | State Farm | $1,372 |
Georgia | Progressive | $1,563 |
Georgia | Allstate | $1,701 |
Hawaii | Geico | $857 |
Hawaii | State Farm | $1,023 |
Hawaii | Allstate | $1,389 |
Hawaii | Progressive | $1,646 |
Hawaii | Farmers | $2,376 |
Iowa | Amco Ins Co | $645 |
Iowa | Geico | $693 |
Iowa | Farmers | $933 |
Iowa | State Farm | $945 |
Iowa | Progressive | $1,286 |
Iowa | Allstate | $1,589 |
Idaho | Geico | $713 |
Idaho | Farmers | $800 |
Idaho | State Farm | $845 |
Idaho | Progressive | $848 |
Idaho | Depositors Ins Co | $863 |
Idaho | Allstate | $1,577 |
Illinois | Geico | $590 |
Illinois | Amco Ins Co | $678 |
Illinois | State Farm | $1,011 |
Illinois | Illinois Farmers | $1,170 |
Illinois | Progressive | $1,193 |
Illinois | Allstate | $1,375 |
Indiana | Geico | $651 |
Indiana | Illinois Farmers | $748 |
Indiana | Progressive | $854 |
Indiana | Nationwide | $866 |
Indiana | State Farm | $1,095 |
Indiana | Allstate | $1,569 |
Kansas | Nationwide | $814 |
Kansas | Geico | $823 |
Kansas | State Farm | $1,166 |
Kansas | Farmers | $1,249 |
Kansas | Progressive | $1,682 |
Kansas | Allstate | $1,718 |
Kentucky | Geico | $881 |
Kentucky | Nationwide | $1,631 |
Kentucky | Progressive | $1,693 |
Kentucky | State Farm | $1,734 |
Kentucky | Allstate | $2,822 |
Louisiana | Geico | $1,540 |
Louisiana | State Farm | $2,023 |
Louisiana | Allstate | $2,316 |
Louisiana | Progressive | $2,881 |
Massachusetts | Geico | $865 |
Massachusetts | State Farm | $884 |
Massachusetts | Progressive | $1,272 |
Massachusetts | Allstate | $1,742 |
Maryland | Progressive | $1,102 |
Maryland | Nationwide | $1,114 |
Maryland | Geico | $1,199 |
Maryland | State Farm | $1,357 |
Maryland | Allstate | $2,177 |
Maine | Geico | $517 |
Maine | State Farm | $948 |
Maine | Progressive | $1,025 |
Maine | Allstate | $1,212 |
Michigan | Geico | $1,027 |
Michigan | Progressive | $1,714 |
Michigan | Titan | $2,177 |
Michigan | Allstate | $2,849 |
Michigan | State Farm | $3,135 |
Michigan | Farmers | $3,999 |
Minnesota | Geico | $935 |
Minnesota | Illinois Farmers | $1,030 |
Minnesota | Allied | $1,188 |
Minnesota | State Farm | $1,190 |
Minnesota | Progressive | $1,295 |
Minnesota | Allstate | $1,483 |
Missouri | Allied | $724 |
Missouri | Geico | $800 |
Missouri | Farmers | $1,051 |
Missouri | State Farm | $1,279 |
Missouri | Progressive | $1,303 |
Missouri | Allstate | $1,769 |
Mississippi | Geico | $894 |
Mississippi | Nationwide | $1,184 |
Mississippi | Progressive Gulf Ins Co | $1,268 |
Mississippi | State Farm | $1,353 |
Mississippi | Allstate | $1,917 |
Montana | Geico | $848 |
Montana | Progressive | $1,112 |
Montana | State Farm | $1,149 |
Montana | Depositors | $1,238 |
Montana | Mid Century | $1,244 |
Montana | Allstate | $1,753 |
North Carolina | Progressive | $622 |
North Carolina | Geico | $704 |
North Carolina | State Farm | $845 |
North Carolina | Farmers | $1,046 |
North Carolina | Nationwide | $1,071 |
North Carolina | Nationwide | $1,205 |
North Carolina | Allstate | $1,230 |
North Dakota | Allied | $753 |
North Dakota | Geico | $897 |
North Dakota | Progressive | $1,047 |
North Dakota | State Farm | $1,132 |
North Dakota | Allstate | $1,502 |
North Dakota | Mid Century | $2,560 |
Nebraska | Allied | $711 |
Nebraska | Geico | $978 |
Nebraska | State Farm | $1,003 |
Nebraska | Mid Century | $1,192 |
Nebraska | Allstate | $1,393 |
Nebraska | Progressive | $1,403 |
New Hampshire | Geico | $550 |
New Hampshire | Nationwide | $867 |
New Hampshire | State Farm | $1,036 |
New Hampshire | Progressive | $1,465 |
New Hampshire | Allstate | $1,588 |
New Jersey | 21st Century Centennial | $762 |
New Jersey | Geico | $1,104 |
New Jersey | Progressive | $1,255 |
New Jersey | Allstate NJ | $1,761 |
New Jersey | State Farm | $1,847 |
New Mexico | Geico | $894 |
New Mexico | Progressive | $998 |
New Mexico | State Farm | $1,177 |
New Mexico | Farmers | $1,251 |
New Mexico | Allstate | $1,948 |
Nevada | Geico | $1,342 |
Nevada | Mid Century | $1,537 |
Nevada | Progressive | $1,663 |
Nevada | State Farm | $1,726 |
Nevada | Victoria | $1,955 |
Nevada | Allstate | $2,256 |
New York | Geico | $993 |
New York | Progressive | $1,160 |
New York | Allstate | $1,587 |
New York | State Farm | $1,855 |
New York | Nationwide | $2,098 |
New York | Foremost | $2,858 |
Ohio | Geico | $619 |
Ohio | State Farm | $881 |
Ohio | Farmers | $887 |
Ohio | Progressive | $999 |
Ohio | Nationwide | $1,015 |
Ohio | Allstate | $1,310 |
Oklahoma | Geico | $1,050 |
Oklahoma | Farmers | $1,327 |
Oklahoma | State Farm | $1,416 |
Oklahoma | Allstate | $1,918 |
Oklahoma | Progressive | $2,506 |
Oregon | Geico | $933 |
Oregon | State Farm | $1,043 |
Oregon | Nationwide | $1,121 |
Oregon | Progressive | $1,238 |
Oregon | Farmers | $1,594 |
Oregon | Allstate | $1,656 |
Pennsylvania | Geico | $703 |
Pennsylvania | Nationwide | $711 |
Pennsylvania | State Farm | $1,284 |
Pennsylvania | Allstate | $1,729 |
Pennsylvania | Progressive | $3,183 |
Rhode Island | State Farm | $1,132 |
Rhode Island | Geico | $1,292 |
Rhode Island | Nationwide | $1,678 |
Rhode Island | Progressive | $2,092 |
Rhode Island | Allstate | $2,246 |
South Carolina | Geico | $1,050 |
South Carolina | Allstate | $1,178 |
South Carolina | Nationwide | $1,200 |
South Carolina | Progressive | $1,359 |
South Carolina | State Farm | $1,511 |
South Dakota | Geico | $708 |
South Dakota | Nationwide | $938 |
South Dakota | Mid Century | $982 |
South Dakota | State Farm | $1,052 |
South Dakota | Progressive | $1,110 |
South Dakota | Allstate | $1,562 |
Tennessee | Geico | $764 |
Tennessee | Nationwide | $796 |
Tennessee | State Farm | $1,131 |
Tennessee | Progressive | $1,223 |
Tennessee | Mid Century | $1,576 |
Tennessee | Allstate | $1,794 |
Texas | Farmers | $905 |
Texas | Geico | $1,027 |
Texas | Colonial | $1,247 |
Texas | Progressive | $1,328 |
Texas | State Farm | $1,348 |
Texas | Allstate | $1,949 |
Utah | Geico | $684 |
Utah | Mid Century | $1,016 |
Utah | Allied | $1,119 |
Utah | Allstate | $1,353 |
Utah | Progressive | $1,503 |
Utah | State Farm | $1,518 |
Virginia | Nationwide | $744 |
Virginia | Geico | $894 |
Virginia | State Farm | $969 |
Virginia | Allstate | $1,102 |
Virginia | Progressive | $1,150 |
Vermont | Geico | $485 |
Vermont | Nationwide | $789 |
Vermont | Progressive | $1,103 |
Vermont | Allstate | $1,183 |
Vermont | State Farm | $1,255 |
Washington | Nationwide | $1,028 |
Washington | Geico | $1,075 |
Washington | Progressive | $1,092 |
Washington | State Farm | $1,160 |
Washington | Farmers | $1,335 |
Washington | Allstate | $1,455 |
Wisconsin | Geico | $663 |
Wisconsin | State Farm | $914 |
Wisconsin | Mid Century | $1,021 |
Wisconsin | Artisan | $1,176 |
Wisconsin | Allstate | $1,484 |
Wisconsin | Nationwide | $2,851 |
West Virginia | Geico | $1,149 |
West Virginia | Progressive | $1,238 |
West Virginia | State Farm | $1,309 |
West Virginia | Nationwide | $1,327 |
West Virginia | Allstate | $1,853 |
Wyoming | State Farm | $1,128 |
Wyoming | Geico | $1,287 |
Wyoming | Farmers | $1,688 |
Wyoming | Allstate | $1,874 |
How to increase your car insurance savings
Here are a few ways to increase the savings even more when switching insurers.