There are many situations in which you’ll find yourself wanting to cancel your auto insurance and switch to a different carrier. You may be unhappy with the price you’re paying, or you may even be unsatisfied with the company itself. Whatever your reason, switching auto coverage is something that should be done right. Here’s everything you need to know about switching auto insurance to another company.

If you’re set on canceling your auto insurance to switch carriers one of the first things you must realize is you’re completely within your rights to cancel your auto insurance policy at any time. You may, however, end up paying fees to do this. That’s why it’s very important to cancel your policy the right way.

First, contact your insurance carrier to give them notice of your cancellation. You’ll be sent a cancellation request form. Simply sign this paper and mail it back to the agent. If you paid your annual premium up front you’re entitled to ask for a refund, although you may not get it back depending on the agent’s policy. In some other cases, when you don’t get your full refund, you could be entitled to a portion of it.

If you’re switching insurance companies you need to make sure you have a new auto insurance policy lined up. To do this, simply request that your new policy start on the date your old policy will be cancelled. If you cancel your policy at any time you may end up paying a penalty. The best time to change insurance carriers is at renewal. Every six months your carrier will send you a renewal notice, giving you 30 days to decide to continue coverage. This is the best time to cancel your policy and go with a new carrier.

Remember, while there are a number of great reasons to move to a new carrier, you may also be saving money by sticking with your current auto policy holder for the long run. Talk to an agent to find out what sort of customer loyalty or long-time policy holder discount you can qualify for. This may make it worth your while and could end up saving you time and money.