Is Now a Good Time to Switch Insurance Companies?

The coronavirus pandemic has changed life for many of us. We know that now more than ever, it’s important to spend money wisely and cut costs whenever possible. While you may not be able to look for other options with large bills like your rent or utility bills, your car insurance is one area where you can save a lot of money with little work.

Here’s how you can get started to stop overpaying for coverage you might not need. 

1. Know that you can switch insurers at any time. 

Unlike some other bills, the great thing about switching car insurance is that you don’t need to wait for a specific time to do it. You can cancel your car insurance policy, and generally, your car insurance company will refund the unused portion of any premiums you paid.

2. Understand that you might be overpaying if your driving or lifestyle has changed recently.

Insurance companies will often use your age, driving and insurance history, location, the value of your vehicle, and other factors to determine how much you need to pay for car insurance.

Many people don’t realize that how much you drive is also considered. If you don’t have a regular commute or drive only when necessary, you may be paying a similar price to someone who drives hundreds of miles each month.

Many car insurance companies are offering credits, discounts, or rebates toward your bill because everyone is driving less. However, these savings may be temporary, and you may end up overpaying for car insurance if your driving and lifestyle have changed.

Unlike other insurers, you don’t need to let us know when your driving changes. Metromile’s monthly bills are based on how much you drive, so you could benefit from lower insurance costs year-round.

3. Accept that switching insurers is a lot easier than you might think.

Moving to a new insurance company will generally save you money, as you could benefit from more up-to-date rates that reflect how you drive now. Similarly, switching insurers may be a low-risk decision. Many insurers don’t charge cancellation fees if you decide to leave, although it’s always a good rule to contact your insurer or read your policy to check for any fees or penalties before you cut ties.

4. Time your switch wisely to avoid a lapse in coverage.

You don’t want to drive when you’re uninsured. To avoid a lapse in your coverage, time your new policy in effect date with your new insurer. Metromile can help you pick the day you want your coverage to start, so you can cancel your old coverage when your new coverage kicks in. This can help prevent you from paying for two policies at once unnecessarily.

5. Confirm your cancellation.

After you cancel your policy, most insurance companies will send you cancellation paperwork. If your company doesn’t provide this to you automatically, it doesn’t hurt to call and ask for a confirmation letter for your records.

If you don’t own your car, it can also be helpful to confirm that your financing or leasing company is updated about your new coverage when you switch. Some insurance companies might do the legwork of informing your financing company or lienholder, but it never hurts to double-check.

Bottom Line

Because you only pay for what you use with Metromile, pay per mile car insurance can help you avoid overpaying for coverage you might not need and help save you money.


Dillon Gonzales is a Phoenix-based licensed insurance specialist with a passion for providing customers with helpful insurance information and an outstanding experience.