1. Time is of the essence. The best time to switch policies is within one month of receiving your policy renewal from your current insurer. You can typically cancel your policy without any fees or penalties if you act within this time period. One cautionary note: make sure you have a new policy in place before you cancel your old one to avoid a lapse in coverage. This will also prevent having to figure out the amount of any unused premium that is due to you from your old insurance company, or having to spar with your agent about exactly when your policy was cancelled and how much they owe you. If you decide to cancel your policy (after acquiring new coverage) outside of the 30-day period, you may have to pay a fee or penalty. However, you may still save money after paying the fee if your new policy affords you significant savings. So while it is best to wait until your receive your renewal notice, you CAN cancel your policy at any time.

You also should check with your state’s Department of Motor Vehicles (DMV) to check what’s on your driving record. If you have an accident or violation that is about to clear your record, it might be a good idea to wait and renew your policy during the next renewal window.

2. Prepare your information. Check through a recent bill or renewal notice for information about your current policy. See what coverage you are getting for what amount. Take note of any discounts your insurer is giving you. Besides having your current policy information on hand, also have your driver’s license number and car registration available when you begin shopping for insurance.

3. Shop for insurance. The quickest and easiest way to shop for new insurance is by comparing rates at InsWeb’s online marketplace. If you do it the old-fashioned way (by calling or visiting multiple agents or insurance companies) it could take up a huge chunk of your time, which no one wants or needs. By completing InsWeb’s online application, you will have rates to compare to your old ones within minutes!

Once you find the policy you like and submit your information on InsWeb’s form, the quickest way to get your policy started (so you can cancel your old one within the 30 day period) is to call the number provided for you at the end of the InsWeb process. Your new policy will be started very quickly, and you can start saving money to spend on other things!

4. Cancel your old policy. Once you have purchased your new policy, you must cancel your old one. As noted before, be sure to secure new coverage before canceling your old policy. It is very important that you contact your old insurance company or agent and cancel the policy, otherwise they could assume you wished to continue your coverage and may eventually cancel the policy due to unpaid premiums and report your lack of coverage to your state’s DMV. This in turn could affect your credit and your ability to get a new policy.

Most insurance companies just need a written statement informing them of your desire to cancel your old policy (some may require that you provide proof of your new policy). Your company will then send you a form to sign and return, which will effectively cancel your policy. If you haven’t received this form (or any confirmation of your cancellation request) within a couple weeks, be sure to contact your agent or the insurance company and inquire as to the status of your cancellation request.

See how easy it is to switch auto insurance companies? Don’t get stuck in an auto insurance rut, shop for new insurance at InsWeb today!