How to switch car insurance – People change their car insurance companies for reasons known to them, but there is nothing wrong with switching to another car insurance company if you are not getting the desired services. Switching your car insurance is easy and can be done with anything.
In addition, it allows you to find a cheaper policy, especially if your current policy is expensive. It also helps you pick coverage that better suits your needs. However, you need to conduct research and communicate with your old and new insurers before switching your policy.
How To Switch Car Insurance
If you want to switch to new car insurance, follow the simple steps below.
Review your Current Policy
You would want to start by reviewing your current insurance policy when it is time to renew it. Make sure to review your current coverage and rate before switching to new car insurance. When reviewing your current policy, do not forget to double-check your deductibles, the amount of collision or comprehensive coverage that you have, and what discounts you are getting.
Shop Around for the Best Rate
After reviewing your current policy, you can start shopping around for the best rate. There are lots of national and regional auto insurance companies to choose from. So you can surf through the information to find the perfect auto insurance company. Visit the insurer’s website to get an initial quote and look at the discounts they offer. The discounts vary, so you can use an insurance comparison site to collect quotes from multiple companies quickly.
Call your Current Insurer for a Better Deal
You should call your insurer directly once you have looked at your current coverage and shopped around for the best rate. Let your insurer know you have been a good customer and that you have found the same coverage at a lower rate with one of its competitors. Once your insurer knows you are thinking about a switch, he might decide to give you a lower rate. But if your insurer isn’t on the same page as you, then you can go ahead and switch.
Ask about Fees
If your insurance company did not agree and you still want to leave, then make sure there aren’t any fees that come with switching. Some insurers charge a certain amount for switching before the end of your coverage term. Some might ask you to pay 10% of your unused premium or a fixed fee of $30 to $50 if you cancel in the middle of your term. Confirm with your insurer if there is a cancellation penalty.
Read Company Reviews
Endeavor to read the company’s review before you go ahead and switch. A car insurance policy may look good, but the fine print can be outrageous. So before you sign on to a new policy with another insurance company, make sure you go over the company’s review thoroughly.
Avoid a Gap in Your Coverage
If there is a gap in your coverage and you get into an accident, you might have to pay all of the costs on your own. So before you change insurance company, make sure you have documentation and also double-check the date the new policy goes into effect.
Cancel your Existing Policy and Get Confirmation
The next step is to stop paying your premium, which means you have to cancel your old policy. Notify your insurance company that you are ending your relationship and that you are going with a different provider. Also, ask for written confirmation, including the final date that your policy is in effect.
When is it a Good Idea to Switch Car Insurance Companies?
You can choose to switch to new car insurance anytime you want. You don’t have to wait for your car insurance policy to end before you can switch. However, it is a good idea to switch car insurance companies when:
- Your credit score was charged.
- When you receive a traffic ticket or a DUI,
- You got rid of a car.
- Your car was stolen or damaged, and you had to make a claim.
- Also, when you moved to a new address.
- You bought a new car.
- Someone living in your home got a driver’s license.
- You got into an accident.
FAQs
How Long do I have to Switch Car Insurance in a New State?
Each state has its requirements, but most states require drivers to switch their policy within 30 to 90 days. Thus, it is best to start the process as soon as possible.
Can I Switch Auto insurance Companies too often?
Yes, you can switch as often as you want, and you will not be penalized for switching car insurance companies. But you will be subject to cancellation fees, depending on your insurance company.
Are there any Penalties for Canceling Car Insurance?
No, there are no penalties for canceling car insurance. But it is best not to cancel a car insurance policy until your new policy starts.