Steps to Switching Auto Insurance Companies

Are You Overpaying for Auto Insurance?

In case you haven’t listened to the radio or watched television in the last 10 ten years, there’s a lot of talk about switching car insurance companies. Many companies claim you can save over 10% or get a higher level of insurance for the price you’re currently paying by changing providers. Believe it or not, they’re right and there really is money to be saved by switching insurance companies, especially if your policy doesn’t include overlooked items like windshield coverage.

Auto insurance rates adjust all the time, which is why it pays to shop around at least once a year for the best possible provider. Remember that a lot can happen over the course of a year - maybe you’re involved in a car accident or purchase a new car, both of which can have major ramifications on your auto insurance and make the perfect opportunity to find a new provider. If you’re thinking about swapping car insurance providers, check out these easy tips for making the switch!

Making the Switch

• First off, don’t even think about canceling your current auto insurance policy until you’ve got a new one in place. Driving without auto insurance for just one day is a bad idea, not to mention illegal. Once you’ve decided on the policy you’d like to switch to, contact the provider and let them know when your current policy will end or be canceled. The new insurance company can then make sure your policy goes into effect as soon as the old one ends.
• Next, you’ll need to decide exactly when to end your current policy. Generally, the easiest way to cancel a policy is to simply not renew it. About a month before your policy ends, you provider should send you a notice in the mail with renewal information. Contact your insurance company to let them know you will not be renewing, then you can let your new provider know exactly which date to begin your new policy.
• Of course, you don’t have to wait until renewal time comes around to switch car insurance companies. In most cases, you should have no problem canceling your insurance policy with the proper notice, although it may come at a cost. Many of the discounts that auto insurance providers offer are dependent on you remaining with the company for a specific amount of time. Meaning, ending your policy early may require you to pay back some of those discounts as a penalty.
• If you’re ready to cancel your car insurance policy, all you need to do is contact your provider and let them know when you’d it to end. Do not simply stop paying for your auto insurance policy without canceling, as your provider will mark you with a failure to pay notice, which can damage your credit score and prevent you from getting a new policy.