Contact: (217) 355 9075 - Address: 702 Bloomington Road. Suite 205. Champaign, IL 61822 - Email:

Do I have to wait until my renewal to switch insurance companies?

The short answer is No.

We get this question often. It seems there are many mistaken assumptions floating around. It's time to clear these up.

A quick refresher: Car Insurance policies are issued for either 6 or 12 months at a time. When the 6 or 12 months has passed and it's time to begin a new period, that's called the renewal. Most people will wait for a renewal to make a switch, however it’s NOT required nor is it a law.

You have the power to switch whenever you want.

The insurance policy is a contract between you and the insurance company, but the policy belongs to you. You hold the power to make changes during your policy period and that does include cancelling the policy. You are not obligated by law or the contract to wait until renewal to switch insurance companies. 

Yes it can be easier to wait until the renewal date, but it is not required.

So, what happens to the premium I paid when I switch insurance companies during my policy period?

It is very common to make a mid-term change. Any unused premium would be refunded to you. You will only need to pay for the exact number of days that you used the insurance. If you pay your insurance monthly it might be easiest to make the new policy effective the same date your next payment is due.

Warning! If you are signed up for automatic deductions from a checking or savings account the insurance company will usually send the request for payment 3 days (or as many as 5 days) prior to the due date. It is very important that you allow enough time to cancel your current policy in time to prevent the insurance company from requesting another payment.

My homeowners insurance is paid by my bank, via escrow. How would that work?

Here's where it gets a little messy. But not unmanageable by any means. And if you have a good agent in your corner, he or she can provide the following explanation so you feel more comfortable and know the expectations. Here's the typical procedure....

  1. Existing policy is cancelled.
  2. Refund check is issued to you, the insured.
  3. You endorse the refund check and get it to the mortgage company/bank.
  4. Mortgagee is billed for the new premium.
  5. Mortgagee pays new premium from funds in escrow.

A tremendous assumption here is that you are switching to take advantage of premium savings. So it would make sense you have enough money in your escrow account (after depositing the refund check) for the bank to cut a new check. If you don't you'll need to make up the difference.

Some banks are really nice in that any additional premium will just be included in the annual "settle-up" of the escrow. When this happens, they'll just add the amount to your new monthly payment.

Again, these are the most common situations we face, and most likely you will too. Just remember, that you are able to switch insurance companies when you want to and a good agent in your corner will help make the process easier.

Looking to switch insurance companies? Rueck Insurance Agency- we'll make it easy and guide you through the exact process we outlined here. You can also begin a quote request on our website. Insurance doesn't have to be painful OR complicated.


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About Us

Rueck Insurance is your independent, one-stop insurance center for all your personal and business insurance needs in Illinois. Insurance shopping is easy when the Protection Team provides you with multiple quotes to choose from. You will always know you are getting the best coverage at the lowest possible price.

Contact Info

Rueck Insurance is your independent, one-stop insurance center for all your personal and business insurance needs in Illinois.

702 Bloomington Rd#205
    Champaign, Illnois
(217) 355-9075

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