How and When to Change Auto Insurance Companies

  • April 11, 2018

Investigate different companies, and shortlist insurance firms with excellent track records when it comes to handling claims. Ask family, friends, and colleagues for recommendations. You can also check online forums and review sites as well as consumer publications to find the most reputable insurance providers. Additionally, check with your state insurance office to discover customer complaint ratios What you want is not just an insurance company that offers competitive rates but one that delivers outstanding claims service.

Make sure you understand the extent of protection your new policy provides, especially the amount of liability protection and bodily injury protection. Many auto insurance companies offer considerable discounts when you get multiple policies, such as car insurance and home insurance, all from the same provider. Once you’ve weighed your options carefully and made a final decision to move on to another company, it’s best to contact your existing provider instead of simply waiting for your premium period to expire or refusing to pay the renewal fee.

The ideal time to notify your provider is near the end of your premium period. Typically, auto insurance firms allow you to cancel your policy when you give proper notice. Some companies charge a minor fee when you cancel early. Ask your provider about any penalties involved for canceling policies, so you can decide whether to switch immediately or wait until one to two months before the renewal period.

Everything should be put down in writing when signing up for a new policy, and you should confirm that your old policy is properly canceled. Be sure that your new policy is in effect before contacting and leaving your existing provider for good. The last thing you’d want to happen is to run into a vehicle accident or other car-related troubles without having sufficient auto insurance to protect you financially.

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