Is it okay to switch insurance companies?
It is certainly okay to switch insurance companies if it is in
your best financial interest. We are a capitalist culture, after
all. Everyone should shop around for what's best for them. But be
careful about not paying your premium because you believe you've
got a new carrier. For instance, you go into a State Farm office,
fill out an application, throw away your premium notice for
Farmer's - only to find out that State Farm turned down your
application. Farmer's could technically drop you for non-payment of
premium. Usually, it's best to pay up on your premium, obtain your
new insurance, and then contact your old carrier for any
reimbursement.