How to Switch Car Insurance Companies?

Today, we’re going to be talking about how to switch car insurance companies. This is an important topic because switching insurers could save you a lot of money, without much hassle, if you do it right. In particular, you just need to follow these seven steps.

First, you should decide how much coverage you can afford. At the very least, you need to be in compliance with your state’s minimum insurance requirements. You should also make sure you’re meeting your lender’s or lessor’s specific coverage requirements if there are any. On the other hand, if your current policy includes coverage that you no longer need, then you can drop it when you switch insurers. 

Next, you need to comparison-shop for quotes. As a general rule, it’s a good idea to get quotes from at least three different insurance companies before you purchase a policy in order to find the best deal. Make sure that you also compare discount options between your current insurer and any company that you might switch to in order to get a more accurate idea of what you’ll pay. When you have a good idea of how much your coverage will cost, it’s time to evaluate the insurer’s customer service. 

This is especially important if you’re unhappy with your current insurer’s services. After that, you should tell your current insurer that you’re considering switching companies. In some cases, your insurer may be able to match a competitor’s offer. If you’re switching companies mid-policy, your insurer will likely provide you with a refund for any unused premiums that you’ve already paid. Some insurance companies also charge cancellation fees if you cancel mid-policy, so be sure to ask your insurer about that. 

What you don’t want to do when switching insurance companies is, have any sort of lapse in coverage. A lapse in coverage is an industry term for going without insurance, which is illegal in almost every state. The best way to avoid a lapse when switching insurance companies is to have your policies overlap by a day or so. When your new policy is in effect, then it’s time to call your old insurer to officially cancel your previous policy. Once the policy is canceled, you should also contact your lender or lessor to let them know. Since they technically own the car, they’ll need to have the details for your new policy as well. 

Finally, don’t forget to print or download your new proof of insurance. Almost every state accepts digital proof of insurance, but your insurer will usually send you an insurance card via mail or email. Now that you know all of the steps for switching car insurance companies, it’s time to start looking for coverage. I hope you enjoyed this session on everything you need to know about How to Switch Car Insurance Companies? So always be sure to contact a professional before making any financial decisions.