Switching car insurance companies is a no-brainer; however, it requires research and communication with both your existing and new insurers. Changing your car insurance company is an ideal option if you discover lower rates than your previous car insurance premiums.
By switching your car insurance company, you will be able to find the best deal. However, this isn’t always the best option. If you want to switch car insurance companies but don’t know how to, then don’t fret because the process isn’t too hard and you can switch anytime during your current policy term.
When Should I Switch Car Insurance Companies?
Comparing car insurance rates every year is one of the ways to get the best deal. However, you don’t have to wait until your insurance policy ends to switch to a new one. You can change insurance companies any time you want.
If you also have an open insurance claim, then you can also change car insurance companies. However, your existing insurer will be responsible for handling it. There are other common situations where you might want to change your car insurance companies, and they include:
- Buying or adding a new car to your insurance policy.
- Planning to relocate.
- Increasing or reducing coverage.
- Noticing a spike in your car insurance premium.
- a change in your credit score.
- Experiencing poor customer service.
Although changing your car insurance company has its perks, there are times when switching car insurance companies might not be the ideal option for you.
How to Switch Car Insurance
Want to switch your car insurance provider to a new one but don’t know how to? Well, don’t fret. In this section of this blog post, I will provide steps on how to switch your car insurance provider. Here is how it is done:
• Examine Your Coverage Options
Having little car insurance can lead to some out-of-pocket expenses. However, having too much storage also means that you are overpaying. You can shop around if you think that you are paying too much for your car insurance policy.
The more coverage that you add to your car insurance policy, the more it will cost. If you are thinking of how to change your car insurance, knowing the several types of coverage and the ones that you need is very important.
• Check For Penalties
If you think changing your auto insurance is the best decision, you should know if there are any penalties. Some providers charge cancellation fees for changing your car insurance carriers before the coverage period ends. Thankfully, car insurance companies give you the option to terminate your policy at any time, as long as you notify the provider.
Although most car insurance companies will refund your unused premium, some might charge a fee if you want to cancel your policy midway. Before terminating your insurance policy, you might want to contact the insurance company’s customer care if the company has any cancellation stipulations.
If you will be charged a fee for canceling in the middle of your policy, then you can re-consider switching your car insurance policy until the policy term is over. However, if you can find a new car insurance policy with a premium that makes up for any penalties charged by the old insurance provider, then you can switch your car insurance company.
• Compare Car Insurance Quotes From Different Carriers
If you want to change your car insurance company, then you can consider getting quotes from different car insurers. This will enable you to compare car policy premiums, coverage options, and some discounts that you are qualified for. Ensure that you are getting quotes from the same coverage limits and types so that you are comparing the premiums evenly.
If you are getting quotes from either the phone, online, or an agency, you will need to prepare some documents. This include the vehicle identification number, vehicle year, model and make, driver’s license number, Social Security number, and address where the car will be stored. Make sure that you ask about discounts that are available to you.
• Contact Your Current Insurer
As you shop around for quotes from other insurers, you can contact your current insurer. By contacting your current insurer, you will be able to find out about discounts and other savings that you might be missing out on. Your agents may provide ways for you to reduce your costs, such as maintaining a clean driving record or buying a cheaper vehicle.
This step is very important if your car insurance is written through an independent agency. These types of agents can represent several insurance providers. They are also capable of shopping for your car insurance policy with different carriers to help you find a lower rate while keeping your policy with the same agency.
• Research the New Car Insurance Company
Before buying a new car insurance policy, you should do your research on the insurer. Price is not the only factor to think about when you are shopping for a car insurance company. There are other factors that you can consider to make sure that you select an insurance policy that suits your needs and your budget.
• Avoid Interruptions In Coverage
If you want to change your car insurance after your current policy expires, then you can experience a lapse in your coverage. A lapse in your insurance coverage can lead to financial and legal challenges, especially if you are in an accident while uninsured.
If you are the cause of an accident and you don’t have insurance coverage, then you will be responsible for paying for the damages, which include any medical bills and out-of-pocket expenses. Even if you aren’t at fault, several states require that all insurance companies file proof of insurance with the Department of Motor Vehicles after an accident occurs.
Driving your car without an insurance policy can cause the insurance companies to charge higher premiums. Because you will be regarded as a high-risk driver. Your new car insurance company should be able to know the activation of your new car insurance policy so that it starts as soon as the old one ends.
• Ensure Your Old Car Insurance Policy is Cancelled
If you are changing car insurance to a new one, this doesn’t mean that your current insurance policy will be canceled if you stop paying premiums. Several car insurance professionals suggest that you contact your current carrier to terminate your car insurance policy when you are changing to a new car insurance company.
Every insurance company has its own process for canceling insurance policies. You might need to sign a form that authorizes your cancellation, or you might need to contact and speak with a customer service representative. The insurance agent will guide you through this process.
• Print Out Your New Car Insurance ID Cards
As soon as you have terminated your existing policy and started the new insurance policy, you will want to switch your old insurance ID card for a new one to keep in your wallet or car. You will need proof of coverage under your new car insurance provider if you get pulled over by state law enforcement.
The steps provided above explain how you can switch your car insurance policy from your old insurer to a new car insurance company.
FAQs
Can You Switch Car Insurance Companies Too Often?
Although you won’t be charged for switching car insurance companies, you can be charged cancellation fees, depending on your insurer. You can also miss out on certain discounts if you switch to a new car insurance company.
Why Should I Consider Switching Car Insurance?
Switching car insurance could help you save money or get better coverage. It’s worth considering if you’re unhappy with your current provider or if you’ve found a better deal elsewhere.
When is the Best Time to Switch Car Insurance?
The best time to switch is typically before your policy renewal date. This way, you can avoid any cancellation fees and ensure continuous coverage.
What information do I need to switch car insurance?
You’ll need basic personal information, details about your current policy, and information about your vehicle(s), including make, model, and VIN (Vehicle Identification Number).
How do I Find a New Car Insurance Provider?
You can research different insurance companies online, ask for recommendations from friends or family, or work with an insurance broker who can help you compare quotes.
Do I Need to Cancel my Current Policy Before Switching?
Yes, you’ll need to cancel your current policy once you’ve secured new coverage. Make sure there’s no gap in coverage between the cancellation of your old policy and the start date of your new one.
Will I Have to Pay a Cancellation Fee?
Some insurance companies charge a cancellation fee if you switch before your policy term is up. Check your current policy documents or contact your insurer to find out if this applies to you.
How Do I Cancel My Current Car Insurance Policy?
Contact your current insurer, either by phone or through their website, and request to cancel your policy. They’ll likely ask for some information to verify your identity and process the cancellation.
Will Switching Car Insurance Affect My Credit Score?
Generally, shopping around for insurance quotes won’t affect your credit score. However, if you apply for multiple policies and insurers run a hard inquiry on your credit report, it could have a minor impact.
