Why And How To Switch Car Insurance

By Justin Yoshizawa and the Mercury Team

A lot of drivers stick with the same auto insurance company for years simply out of habit. It feels easier to renew than to shop around, even if your rates have crept up. But taking the time to compare options can really pay off. Switching providers could mean lower premiums and even perks you didn’t have before.

Let’s explore why switching auto insurance can be a smart move, the moments when it makes the most sense, and how Mercury Insurance makes the process simple and stress-free

Why Should You Consider Switching Auto Insurance Providers?

There are a few reasons why switching insurers could be the right call for you:

Premiums increase over time: Even if you haven’t filed a claim in a while, your premiums can creep up year after year. Inflation and rising repair costs are some of the key factors that increase your monthly bill, so shopping around can help you find a better deal.
Your coverage needs may change: Certain life events, such as buying a new car, moving, marriage, or a job change, can require a car insurance update. Exploring your options could lead to better, more tailored coverage.
New discounts and products may be available: Insurance companies regularly roll out new discounts and products, from safe-driver perks to multi-car savings. Switching could unlock benefits your current policy doesn’t offer.

Can Switching Save You Money?

In many cases, yes. According to a Consumer Reports survey, 41% of respondents saved $500 or more, and 13% saved $1,000 or more. Here’s how switching can save you money:

Compare Rates to Find Lower Premiums

Insurance companies all weigh risk factors a little differently, which means two providers could quote you different prices for the same coverage. Shopping around helps you spot opportunities to cut costs without cutting protection.

Bundling Policies Can Create Bigger Savings

Need renters or homeowners insurance as well? Bundling home and auto policies with the same provider is a smart way to save. Most insurers, including Mercury, give you a discount when you combine policies. Plus, you’ll have everything in one place, which means no more juggling multiple bills and dealing with different companies.

Mercury Offers Competitive Discounts

Aside from bundling savings, we also offer other auto insurance discounts, from safe-driver rewards and multi-car savings to perks for paying in full or having anti-theft devices. Depending on your situation, these discounts can really add up.

What Coverage Improvements Could You Gain?

Saving money is great, no doubt. But switching providers can lead to upgraded protection plans for you, your family, and your vehicle. This can include:

Higher liability limits: If you’re ever in an accident and found at fault, liability coverage helps cover injuries and property damage. But if your limits are too low, you could be left paying out of pocket. Upgrading your policy can give you higher limits and extra peace of mind.
Better collision and comprehensive coverage options: These coverages protect your own car, whether it’s damaged in an accident, stolen, or hit by severe weather. If your current plan feels minimal, a new policy may offer stronger or more affordable options.
Added perks: Many providers offer helpful extras like roadside assistance, rental car coverage, and towing services to give you convenience, whether you’re dealing with a flat tire or need a loaner vehicle while your main ride is in the shop.

How Do Customer Service and Claims Support Differ?

The true test of your insurance company comes when you need to file a claim or get quick answers after an accident. In fact, according to J.D. Power’s 2024 U.S. Auto Claims Satisfaction Study, 80% of customers who’ve had poor claims experiences have already left or plan to leave that provider.

That shows just how important it is to have an insurer you can count on when it matters most. A great insurance partner will make the claims process quick and fair, while also giving you easy access to real people who can answer your questions without long waits.

Mercury is known for strong customer support. You can file a claim online 24/7 or call our claims hotline anytime, day or night, to speak with a representative.

Janete, a Mercury customer from Los Angeles, values her partnership with us. “I hope more people choose Mercury as their insurance carrier. After an accident, you want a great team to help you every step of the way, and you get that with Mercury.”

When Is the Best Time to Switch Auto Insurance?

You might wonder: Can you change car insurance at any time? Yes, but there are some moments that call for reevaluating your policy and possibly switching to another provider. These situations include:

At policy renewal: Since your current policy is about to end, you can move to a new provider without worrying about cancellation fees or leftover premium refunds. Renewal time is also when insurers recheck your risk, so it’s the perfect opportunity to compare new quotes.
After major life changes: Big milestones like getting married, moving to a new neighborhood, or adding a teen driver can all affect your rates. For example, many married drivers qualify for lower premiums, and a new ZIP code might come with better discounts.
When you buy a new car: A new ride is a great reason to reevaluate your insurance. You might want higher liability limits, stronger comprehensive coverage, or extras like roadside assistance. Shopping around before you hit the road can help you get the right protection at the best price.

How to Switch Car Insurance

Ready to make the switch? Follow the steps below to learn how to change car insurance providers:

Step 1: Review Current Policy

Take a few minutes to look over your current policy, especially the declarations page, which lays out your coverage limits, deductibles, and any extras you’re paying for. Knowing exactly what you have now makes it easier to compare new quotes fairly. It’s also a good time to check when your policy renews and whether you’d get a refund if you cancel mid-term.

Step 2: Compare Multiple Quotes

Gather quotes from at least three different insurers. The best way to shop for car insurance is to line up the same coverage limits and deductibles so you’re comparing apples to apples.

Also, don’t just look at the price. Take note of any extra fees, available discounts, and customer service reputation. You want to get a clear picture of who offers the best value, not just the lowest monthly bill.

Step 3: Ensure No Lapse in Coverage During Transition

Never cancel your old policy until the new one is active. Even if you have a coverage gap for just a day or two, that’s enough time to get into an uninsured car accident. That can lead to fines, steep rebills, and higher premiums down the road.

To avoid that problem, set your new policy to begin the same day or a little before your old one ends. Once you have proof of new coverage, you can cancel your old policy.

Why Choose Mercury Insurance When Switching?

If you’re looking for affordable rates, dependable service, and coverage that fits your life, Mercury Insurance makes the switch worth it. Here’s why:

Affordable Coverage with Trusted Service

Mercury prides itself on delivering affordable coverage without compromising quality coverage. We’ve also garnered multiple accolades throughout the years, including:

America’s Most Trustworthy Companies by Forbes
Best Insurer for Overall Satisfaction in the Shopping Segment of the J.D. Power 2021 U.S. Digital Experience Study
Best Insurance Companies in America for 2022 by Forbes

Wide Range of Discounts and Bundles

Mercury makes it easy to save big with our wide selection of auto insurance discounts, which include:

Anti-Theft Feature Discount
Auto Pay Discount
E-Signature Discount
Good Driver Discount
Good Student Discount
Multi-Car Discount
Multi-Policy Discount
Pay-in-Full Discount

These are just a few of the many discounts available to our policyholders. Reach out to a local insurance agent to see which discounts you qualify for and how much you could save.

Personalized Policies to Fit Your Needs

Our agents work with you to customize a plan that fits your lifestyle and budget. Want extras like roadside assistance, rental car coverage, or rideshare protection? Mercury makes it easy to add those on, so your policy grows with you.

You also get access to our authorized repair shop program, which connects you with trusted repair shops that meet high standards for quality and service.

Wrapping Up

Switching auto insurance providers may feel like a chore, but it’s one of the best ways to save money and upgrade your coverage.

“Drivers are often surprised by how much their needs change over time,” says Justin Yoshizawa, Director, Product Management State for Mercury Insurance. “Reviewing your policy and comparing providers can uncover opportunities to improve protection and lower costs without sacrificing quality coverage.”

The key is to regularly review your policy and shop around so you know you’re still getting the best deal. Even if you’ve been with the same insurer for years, it’s worth exploring your options because the grass can be greener on the other side.

If you’re ready to make a switch, Mercury makes the transition simple with affordable rates, trusted service, and customizable policies designed to fit your lifestyle.

Justin Yoshizawa

Director of Product Management at Mercury Insurance

Justin Yoshizawa is Director of Product Management for Mercury Insurance, overseeing California’s personal lines, including auto, homeowners, landlord, and umbrella. He has led major initiatives such as the rollout of the aligned umbrella product across all Mercury territories and serves as a company spokesperson on auto-related topics. Yoshizawa holds dual Bachelor of Science degrees in Applied Mathematics and Applied Statistics from UC Santa Barbara.