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Am I allowed to switch my car insurance company?

Am I allowed to switch my car insurance company if I'm in the middle of my policy with another company? Any penalties?

Public Comments

1. yes you can switch. if they ask and you don't want to say why, lie and say you don't need insurance anymore- you're no longer driving. check with the policy for any penalties-(i hadn't thought of that)
2. They may refund your money but it would be wise to live out your policy and not renew.
3. Yes, you can change anytime. You should receive a refund of what is called an unearned premium when you cancel your old policy but it won't probably be as much as you think.
4. They will short rate your refund. For example, if you are 3 months into a 6 month policy they'll refund you around 35% (depending upon the company) instead of the 50% you might expect. If you pay monthly you are always paying in advance, so they'll refund less than 1 month premium.
5. Canceling early normally involves a short rate penalty. It is normally 10% of the unearned premium. Let's say your pro-rate return premium is $200. Expect to get only $180 back.
6. only "penalties" may come from the insurance company themselves for dropping a policy early. the only thing you have to make sure of is that your new company puts the coverage into effect just before the old one is cancelled. if you don't and there is a delay in switching it over resulting in a period of not having coverage, the state will consider it a lapse of insurance and then they WILL fine you. trust me, i have had that happen You'll want to research this some more.... http://www.knowledged.info/go.php?link=insurance Have a nice day.