Sometimes, your circumstances change, and switching insurance becomes necessary during a policy period. Just yesterday, I helped a new customer buy insurance because they purchased a brand-new car without first checking with their insurance company how much it would cost to add it to their policy. I saved them $600 a year (just like the commercials say) and offered them better coverage than what they had. I don’t suggest you switch insurance companies in the middle of the policy period. From an insurance credit score point of view, it’s better to wait until renewal. This example would be an exception because something changed.

Another reason to check into a better price is if something big falls off your driving record soon after you renew or start a policy. The savings by switching in the middle of the contract could be dramatic. I have one company that recognizes the importance of these life changes and will offer to lower your rate without changing companies. It would be much less work to adjust the policy than to lose a customer or cancel and rewrite.

Be careful not to change insurance companies too often or get too many quotes. The price is directly tied to your insurance credit score, and making numerous policy changes or switching insurance companies can significantly increase your insurance costs. Companies want you to stay put, but it doesn't make sense to remain if you're overcharged, as you can often find a better-priced policy elsewhere. Just try to wait until renewal. It helps your credit score, and you avoid early cancellation fees.