There are a lot of reasons why you might want to switch your car insurance to a different company. You might have found a different company that gives you the same amount of coverage for a lot less money. You might have switched jobs and be eligible for a group discount from a different insurer, or you might not be happy with the service from your current company. With the growth of the Internet and sites that compare quotes, it's never been easier to look into your options.
Why should you switch to a new auto insurance company?
You should look over your auto insurance coverage every so often to make sure you are getting the most for your money. You will find that shopping around pays off. In some states, auto insurance companies with the same policies can charge very different premiums. The reasons for this can be very complicated, but they all come down to a company's experience with claims from customers in a coverage group (e.g. people of similar age, number of accidents, type of vehicle). For instance, if a lot of people in a coverage group make claims in a given year, their rates are likely to go up. When this happens, you may be able to get better discounts and overall lower premiums from other insurance companies. If you want to switch your car insurance to a different company, you'll find it's not too hard to do.
How to get rid of your old car insurance
Most of the time, all you have to do to cancel your auto insurance policy is let your insurance company know in writing and tell them when you want the policy to end. In some states, the new agent has to tell the old agent about the change in policy. Some auto insurance companies ask the policyholder to send back the actual printed policy. The insurance company will send you a form that needs to be filled out, signed, and sent back. Carefully check the form to make sure that all of the information about the policy is correct. If you don't get the form within two weeks of sending the letter, you should call the agent or company right away to find out what's going on. Don't just stop paying for the old policy without cancelling it officially. Each state has rules about how to cancel an auto insurance policy. If you don't give notice, the insurance company might think you want to keep the coverage. If you don't pay your premiums, the policy could be cancelled and the lack of coverage reported to the state Department of Motor Vehicles. This can lower your credit score and make it harder for you to get a new policy.
Make sure to get new car insurance first.
Before cancelling the old policy, you should always have a new one in place. If you don't, you might not be protected for a day or more! Most states require all drivers to have a minimum level of car insurance, and most insurance companies won't cancel an active policy until the policyholder shows proof of new coverage. The new company will be able to make sure that the new policy starts at the same time that the old one ends.
When to change your car insurance
At Renewal
Renewal is a good time to switch auto insurance policies because you don't have to wait for your current carrier to give you a refund. Depending on the rules in your state, a renewal notice will be sent to you about 30 days before a new policy starts. If you decide to switch companies, you'll need a new policy before your old one expires. Even if a company tells you that you have 10–30 days to pay before your policy ends, you won't have coverage until the carrier gets your payment. If you have an accident during this time, you probably won't be covered because you didn't pay the premium.
Anytime:
All auto insurance policies have a clause that says you can cancel your policy at any time as long as you give the right notice. In a few states, auto insurance companies "short rate" policies. This means that if you cancel your policy before it renews, you have to pay a fee. Most insurance companies prorate their policies so that there is no penalty. If you switch before your plan is up for renewal, you can save a lot of money. For example, if your policy runs from January 15 to August 15, and on March 15, you get a ticket or are in an accident that happened more than 36 months ago. If you switch auto insurance companies on March 16, you can save money if you are a safe driver. Your current insurance company won't give you this discount until August 15, when your policy is up for renewal. This can save you a lot of money right away.
How long does it take to get a new car insurance policy?
When you switch auto insurance companies, the new agent or insurer can usually switch carriers while you wait. Most of the time, all they need to get the policy started is a copy of your current declaration page, your driver's licence, and a down payment.
So why not start today and Get Free Auto Insurance Quotes from Top Companies?
