No, changing car insurance isn't bad and won't result in penalties or affect your credit rating. Drivers don't usually incur cancellation fees, even in the middle of the policy. While it may be difficult to switch car insurance companies in the middle of your contract, you won't have any negative consequences for doing so. Under normal circumstances, changing insurance companies won't affect your credit rating.
If you decide that changing car insurance is the right choice, we recommend that you find out if there are any penalties, such as a cancellation fee, for changing car insurance companies before the coverage period ends. Insurance is a competitive market, one of the reasons why people and companies change insurance companies all the time, in search of better coverage, better prices or better service. If you think your level of coverage is OK, but you feel like you're still overspending, you can consider switching to car insurance. If you switch your car insurance to a new insurance company, don't assume that your current policy is automatically canceled if you stop paying premiums.
When requesting an insurance quote, insurance companies can check your credit history with your consent and use your credit rating as one of the ways to determine their insurance rates. Bankrate's insurance editorial team, which includes three authorized agents who have helped thousands of drivers change policies, explains the process of changing insurance companies. Yes, car insurance companies must reimburse premiums you have already paid after changing companies. We help you navigate the world of insurance by providing you with expert advice and all the up-to-date information you need to make the best insurance decisions for you, your family and your business.
Driving without insurance could cause insurance companies to charge you higher premiums in the future because, as a result, they may perceive you as a high-risk driver. Switching car insurance while you have a pending claim can result in a change in your premium shortly after you get your new policy or when you renew it. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. If you change car insurance after your current policy expires, you could experience a lapse in coverage.
You may be able to switch car insurance while you have a pending claim, but a good practice is to wait until the claim is closed. Independent insurance agents can represent numerous insurance providers, unlike captive agents who only sell insurance products from a single company. Buying car insurance doesn't have any negative impact; it doesn't impose any purchase requirements on you, it doesn't affect your credit rating or negatively affect your premiums.