When (and How) to Fire a Financial Services Provider

Browse any consumer review site for a few minutes, and you’ll find a myriad of reasons why customers leave their financial providers. The quitters span all types of accounts, including banking, investing and insurance.

You shouldn’t feel guilty for switching providers; with few exceptions, your relationship with a company is strictly business. Just as a company will discontinue your service if you fail to make timely payments, you needn’t feel obliged to patronize a financial institution that no longer meets your needs.

Yet you also shouldn’t be too casual about changing financial providers, not least because doing so will require work on your part. Here are the key questions to ask before deciding whether to switch or stay loyal to the companies that currently provide or manage your financial services.

How satisfied are you with your current provider?

Before researching potential new financial providers, evaluate your satisfaction with your current providers. Take note of any aspects of your customer experience that irk you, even if they’re as minor as the distance you have to drive to get to the nearest ATM.

Supplement your own experience with third-party sources like the Better Business Bureau and online customer review platforms. These resources can help you identify any areas where a company’s service is lacking, especially regarding customer service.

For insurance providers, customer reviews can give you valuable insight into how quickly and accurately a provider processes claims. Even if you’ve never filed a claim, these reviews are especially important. For example, the J.D. Power 2025 U.S. Auto Insurance Study found that 38% of customers are dissatisfied with their current provider.

It’s also worth looking at trends in customer satisfaction among different types of financial service companies. For example, the J.D. Power 2025 U.S. Credit Union Satisfaction Study found that credit unions generally have more satisfied customers than retail banks.

Research the type – and quality – of service you’ll get when you actually need to talk to someone. With the rise in AI-powered customer service tools like chatbots, you might want to make sure that a company you’re considering has an emphasis on person-to-person customer service.

Have personal changes affected your financial needs?

Even if you are happy with your current provider, it’s still worth asking every few years whether your living situation and financial goals have shifted in a way that affects your choice of providers.

For instance, the banking needs of a single, 25-year-old renting an apartment in a big city are likely to differ considerably from those of a 45-year-old suburbanite with a spouse and kids – who might be looking for a bank that’s ideal for both banking and taking out a mortgage.

Likewise, perhaps your car insurance policy was suitable when you were the only one in your family driving. But maybe you need something different now you have a teenager who is driving – and variations in the cost of adding the young driver to your policy become a paramount concern.

Do other providers offer better deals?

Identify specific benefits and do some research to determine if you might be eligible for additional incentives for switching providers.

The most obvious benefit that might motivate you to switch providers is cost savings. Maybe you can secure a lower car insurance premium with another provider or earn discounts for switching companies. Similarly, you may find banks and investment brokerages with lower fees than you’re currently paying.

You may find additional financial incentives for switching, like a better interest rate on a credit card or an introductory bonus for opening up a new bank account. In 2024, banks offered an average of $400 in intro bonuses to attract new customers.

That said, make sure that any providers you’re considering have long-term benefits beyond those initial perks. Look for any unique features a company has, such as exclusive investment options offered by a particular brokerage, a bank program that prevents you from overdrafting your checking account or an insurance company discount for a claims-free history.

What would you lose if you switched providers?

Don’t be dazzled by the potential gains of changing providers. Before you switch, you should also take inventory of the benefits you get from your current provider.

Pay attention to perks that you might take for granted or even forget about after patronizing the same provider for years. Some financial institutions offer benefits and rewards for years of membership to retain loyal customers. For example, many car insurance companies offer discounts for drivers who have had their policy for multiple years without a claim. Insurers may also offer long-term customers additional benefits like accident forgiveness that you could lose if you switch companies.

If you have multiple policies with your current insurance company, you could lose a discount for bundling your home and auto insurance if you switch one of them to a new provider.

If you’ve been working with the same bank or investment brokerage advisor for several years, consider their familiarity with your finances and goals – especially if you’ve developed a personal relationship with that advisor. It could be worth sticking with your current provider to preserve that history and rapport.

How hard is it to switch?

Before you get too engrossed with the benefits of switching to a new provider, investigate the process to switch providers. When changing banks, for example, resetting direct deposits and recurring charges can be tedious. Switching brokerages could potentially entail having to liquidate some investments, which could trigger unwelcome tax implications and rob you of future growth.

In some cases, changing insurance providers also can be challenging — especially for life insurance. There is no way to transfer a life insurance policy from one provider to another. You would have to cancel the policy and buy a new one.

If your policy is of the permanent type, which often has a cash value, you could potentially have to pay surrender fees or taxes on any returns you make on realizing that value. Additionally, buying a new life insurance policy means going through an entirely new underwriting process. Since you’ve obviously aged from when you purchased your last policy, your premiums will likely be higher, and it may even be difficult to find a new company who will insure you.

Even switching pet insurance companies can be complicated for the same reason: You’re not actually transferring policies but canceling one policy and buying an entirely new one. As a result, your pet is liable to lose coverage for any conditions that arose while they were covered by your previous provider. As with life insurance, you might have to pay higher premiums, since your pet will be older for the new underwriting process.

It’s much easier to switch car insurance providers, but it’s crucial to ensure that you remain covered throughout the process. A coverage gap can lead to higher insurance rates and even subject you to fines, depending on your state of residence.

Can you increase your satisfaction without switching?

Finally, it’s worth considering alternatives to switching providers.

For instance, if you’re unhappy with your current car insurance premium, it’s worth talking to an agent to see if you qualify for any discounts. An agent can help you explore cheaper plans or help you determine if you should raise your deductible in exchange for a lower premium.

For some types of financial services, such as banking and investment, it can actually be beneficial to have relationships with multiple institutions. Having multiple accounts can give you increased flexibility or access to more options for managing your money.

Financial decisions are rarely black and white. It’s important to start these decisions by assessing your own needs to avoid committing to a financial provider that isn’t right for you. And keep in mind, you might be able to get the service and pricing you want from your current provider.

A motivated provider might offer incentives to hold onto you as a customer. It never hurts to ask.