Content Overview 
Automobile Insurance
How To Switch Automobile Insurance Companies
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If you decide to switch automobile insurance companies, it is important to do it correctly so you do not have even one day without insurance. Do not cancel your current coverage until the new coverage is in effect.
To switch automobile insurance companies:
- Get your new coverage in place. You do not want to be without automobile insurance for even a day.
- Tell your current company that you want to cancel your policy.
- Name the date you want the policy cancelled.
- The insurance company will send you a form to sign and return. The company may require that you return the policy with the cancellation form. (If you cannot find your copy of the policy, ask the company to send you a "Lost Policy Release".)
- Do not be surprised if the company requires proof of new coverage before canceling your current policy.
If you do not complete the formal process, the company may not cancel your policy. The insurer may later cancel the policy for non-payment. You don't want this to happen because this would be a negative mark in your credit report - and credit is very important after a diagnosis.
A change from one carrier to another can happen in as little as one day.
The best time to switch
The best time to switch is just before your current policy renews -- for example, just after receiving notice from your current insurer about the renewal. If you terminate before the end of the term, the insurance company will refund your premium for the unused period. However, when the insured cancels a policy, most insurers refund on a "short rate" rather than a "pro rata" basis - which means you get less than a proportionate return of the premium.