Switching Car Insurance Companies – The Right Way

There are many reasons why you may want to switch car insurance providers. Buying a new car. Moving to a different state. Found a better deal. Or even getting married.

Still, for many people changing insurance companies seems like a difficult process. Some even describe it as a time consuming nightmare. Is it really that bad?

Follow these simple rules and it will be a piece of cake.

1. Check your existing policy for cancellation terms

Many assume that by simply not paying the monthly premium, their car insurance will be automatically cancelled. Don’t make that mistake. Most companies will require you to send them a written notice. Your policy will be cancelled only after your insurance company receives such a formal request. What happens if you don’t send them a letter?

It will be reflected on your credit history. As you probably know already, credit score has become a major factor in recent years. Insurance companies use it to calculate risk. If you have failed to pay your bills in the past, you are likely to end up in the high-risk category. That will mean one thing. Higher insurance premiums!

So make sure you are familiar with the termination requirements and send a letter as a formal request if needed.

2. Know the exact date when you policy ends

It is astonishing how many people live a gap between the day their old policy expires and the new one start. Knowing that you are insured until sometime in May isn’t good enough. Is it the first or the 29th?

It may sound unlikely to have an accident exactly when you are ‘between policies’, but that’s just one of the ‘fun’ things life likes to throw at us. It is not difficult to avoid, so don’t allow yourself to be in such a ridiculous situation. Inform your new insurance company when your current policy ends and they will take care of things.

3. Do your homework before choosing your new insurance provider

Don’t just compare your current insurer to a new company. Compare it to many new companies. Get 5 quotes. And then some more. It will be a time well spend. How would you feel if you could save hundreds on auto insurance? What would you buy instead?

Just remember to compare quotes based on the same types of coverage, limits and deductible. Otherwise it will be apples and oranges.

Once you have found the company offering you the best deal, do a bit of background research. What is their company rating according to JD Power and AM Best? What do others say about them? How do they handle claims? Are customers happy with the customer service?

Follow these simple rules and you will be guaranteed to find the insurance you deserve. Your auto insurance policy is not just a paper required by law. You purchase it to protect yourself, your loved ones and your property. Choose wisely.

Click here to compare quotes and find the right insurance company for you

Leave a Reply