How To Switch Auto Insurance in Texas


Nothing is forever and sometimes this includes your auto insurance provider. Things change in our lives and in the world of insurance, this can range from the type of coverage you require, the vehicle you are driving, and more. You may even love your auto insurance provider, but due to a change in your personal life, a change may best suit you moving forward.

Change may be the only constant, but it is also scary. You may be faced with the reality of paying more than you expected for your coverage or enrolling with a brand you are unfamiliar with. For drivers, it is only natural to have some reservations about the process, which is something we often see in our industry. But you are not alone.

There are many, many drivers in the Lone Star State asking the same questions as you. Wondering how the process of switching an auto insurance provider works, the consequences of doing so, the timing, etc. Don’t worry, we here at Freedom Insurance Group are proud to be a resource for motorists. We’ve been helping protect Texans as they hit the road since 2005, and we don’t plan on stopping any time soon. Without further ado, get ready to explore the process of switching your auto insurance policy in the state of Texas and how you can do so all while saving money.

How Does Switching Auto Insurance Work?

The first thing you’ll want to do is to determine the type of coverage you need. Next, you’ll want to compare your coverage among a variety of auto insurance providers. Afterward, you must purchase your new policy before canceling your old one. This will prevent a lapse in coverage. From there, you’ll need to gain proof of insurance with your new provider. If you own your vehicle, you are good to go, but if you’ve leased it or purchased your car through financing, be sure to notify your lender of the appropriate changes.

Can You Switch Auto Insurance at Any Time?

Yes, drivers in Texas can switch auto insurance policies whenever they feel. You only need to remember to maintain your coverage and avoid any lapses while switching. At least once or twice a year, it is a good idea to shop your coverage to determine if you are getting the lowest rate for your protection. You’ll also want to avoid switching auto insurance without a good reason as many providers will provide perks and discounts based on your loyalty. The longer you are a customer with the same insurance brand, the better these benefits are likely to be.

Note: some insurers may have a cancellation fee. Before you commit, make sure you read the fine print. In most cases, you’ll be able to switch without having to pay such fees, but each company operates differently. Be sure you understand your individual policy and any stipulations that may come when you switch auto insurance policies.

Does Switching Car Insurance Affect Credit?

No, switching car insurance won’t affect your credit. Issues can arise when your policy is canceled for nonpayment, however. So long as you are making your payments on time and don’t hold debt to an insurance provider, you won’t have to worry about switching providers negatively affecting your credit score.

Reasons To Switch Auto Insurance Companies

Switching your auto insurance company can be done, but that doesn’t mean it’s something you do every day. When you are thinking about making the switch, you’ll want to be sure that you have a valid reason and plan to do so. There are a ton of reasons to switch and not to switch, so let’s focus on the positive. If you are looking to switch auto insurance providers you are going to want to be experiencing a change in your life. Some examples include:

  • You’ve just become married.
  • You’re moving from another state into Texas or purchasing a new home.
  • You’re now part of an organization that provides discounts to its members.
  • Another member of your household just received their license.
  • You’ve been involved in several accidents under a particular insurance brand.
  • You are purchasing a new vehicle.

Major life changes can affect how auto insurance companies view you as a client and this doesn’t have to be negative. If you’ve had a change in your lifestyle, speaking with an auto insurance agent can help you find savings for your coverage.

When You Should Avoid Switching Auto Insurance Companies

You may feel compelled to switch auto insurance, but knowing when not to do so is just as powerful as knowing when and how to make the change. Switching your provider at the wrong time can hurt you in the short, medium, and/or long run. The entire goal of making the change should be to set you as a driver up in a better place than before. Dive in and take a closer look at some of the times it’s wiser to wait rather than make a switch to your auto insurance provider:

  • It’s good to stick with the same auto insurance company if you’ve been a customer for a long time and are receiving a considerable discount.
  • Stick with your auto insurance provider if you’ve just switched. It’s good to shop around and check once or twice a year, but you are unlikely to find a significant amount of savings if you’ve only been with your provider after a few weeks or months.
  • If you’re being covered by a company that is going to charge a notable cancellation fee, it may be best to wait out your policy before switching.

Of course, one of the biggest disadvantages to working with a singular brand is that like any other business, you may be a client, but they have their best interest at heart. By working with an insurance agency that represents several auto insurance brands, you receive expert advice and care from a professional that works for you and not your car insurance provider. This equates to better guidance and an honest opinion on when it’s time to switch. It also means that you’ll receive the best advice on finding the right auto insurance company for your needs and how to save money in the process.

Switching Your Auto Insurance Policy Can Save You Money

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Auto insurance may be specific to protecting your vehicle and riders involved in automobile-related accidents, but the circumstances surrounding your protection are similar to other types of policies. What this means is that your auto insurance provider is looking at one thing and one thing only when creating your car insurance premium—the amount of risk you carry as a client.

Car insurance companies are looking at the amount of risk you pose because drivers with less risk are less likely to cost them money. This results in a lower number of claims and a lower overall premium rate for drivers. On the other hand, if you are a driver who is riskier to insure, you can expect higher premium rates. Here are just a few of the main factors auto insurance companies assess when they are enrolling a client:

  • Your age and location.
  • Your marital status and gender.
  • The amount of coverage you require.
  • Your driving record and claims record.
  • Deductibles.

There are more factors, but these are a highlight of some of the most important ones insurance companies will assess. Overall, these factors are not unique, however, the way they represent you as a client is. To further complicate the situation, each insurance brand is going to use its own calculations, algorithms, and methods to determine how much these factors matter. Different insurance brands will care about different factors more than others and vice versa. You’ll also notice that different brands provide different coverages and discounts to their clients as well.

These differences are why drivers throughout Texas find themselves paying different amounts than their fellow drivers and even among different brands for the same coverage. Here at Freedom Insurance Group, it is for this reason we recommend shopping among multiple brands and comparing your coverage and rates to find the best deal available. We also understand that this can be a time-consuming task, which is why we’ve decided to do this for you.

We’ve partnered with 25+ top-rated auto insurance companies to help deliver you the best possible coverage for the lowest price available. Our agents work for you and compare your coverage among these brands to identify the best deal available without cutting important protection you might need. On average, our clients save 40% when switching their auto insurance. Get a free auto insurance quote today or contact our agents to see how we can help you stay protected for less!

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769


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