Are you tired of overpaying for car insurance? Or maybe you’re not pleased with the level of customer service you’re receiving and prefer to look elsewhere. Either way, you could land a better deal by switching providers. Here’s how to get started.
Why People Switch Auto Insurance Companies
Switching auto insurance companies can often lead to better savings and improved services. Many people decide to make a change for various reasons, including:
- Lower Rates: One of the main reasons to switch is to find lower rates. With insurance rates rising, many are shopping around for better deals.
- Better Coverage: Finding insurance coverage that matches your needs is important. You might find a company that offers more comprehensive coverage for a similar price.
- Customer Service: Sometimes, people switch because they want better customer service. You should feel confident that your insurance company will support you in times of need.
- Available Discounts: Different companies offer various discounts. You might discover that another insurer provides discounts that apply to your driving history or vehicle, saving you money.
- Better Deal: Always look for a better deal by comparing offers. Even if your current rates are competitive, another provider might offer extras that make them a better choice.
- Reputation: Some choose to switch after checking reviews with the Better Business Bureau. A strong reputation can be a deciding factor.
When to Consider Switching
You may want to consider jumping ship if any of the following apply:
- Your rates have significantly increased.
- Your current coverage no longer meets your needs.
- You’ve moved to a new city or state.
- Your experience as a customer has been poor.
*Important note: If you find that your current insurer has a high cancellation penalty, you might wait until your policy term ends. Some may charge a percentage of your remaining premium if you cancel early, which can be costly.
How to Switch Auto Insurance Company: Step-by-Step
When you’re ready to make the switch, follow these steps to make the process as seamless as possible.
Step 1: Assessing Your Current Insurance
Start by reviewing your current policy. Analyze your policy documents to confirm your premium amount and coverage. Be sure to note any gaps or unnecessary coverage you might be paying for that could be eliminated to help reduce your premiums.
Step 2: Researching New Insurance Options
Explore different car insurance companies to find policies that meet your needs. Each company offers different coverage options, discounts, and rates. It’s vital to compare several insurers to find the right match.
You should also check reviews from past and current policyholders so you’ll know what to expect if you decide to move forward. Ideally, you only want to do business with providers with solid reputations and track records that are also financially stable.
Step 3: Getting Quotes and Comparing Policies
Request quotes from at least three auto insurance providers. You can typically do so online or by phone.
When getting quotes, be sure to request similar coverage options to compare your options easily. Pay attention to the deductibles, coverage levels and any other benefits accompanying each policy you’re considering.
Tools and Resources for Comparison
Consider using an online comparison tool to help simplify the process. Experian Auto Insurance features a free tool to help you easily find better coverage deals and switch providers. Plus, you’ll get access to other Experian products when you sign up. It’s free and only takes a few minutes of your time.
Step 4: Timing Your Switch
Your new policy should begin a day or so before your current policy ends to avoid a lapse in coverage. It’ll cost you a bit more, but filling the gap prevents you from being unprotected, even if it’s for a small period of time.
Don’t forget to reference your renewal date. If your current policy has cancellation fees, you want to switch providers at the right time to avoid this pesky cost.
Step 5: Finalizing Your New Policy
Before signing on the dotted line, double-check all details, including coverage limits and any discounts you secured. If everything looks correct, finalize your auto insurance policy by signing the policy documents.
Keep a digital and physical copy of your new policy documents, along with your insurance card, handy. That way, you’ll have all the information you need in case you have to file a claim.
If you prefer to set up electronic payments, now’s the time to do so, and you could land a discount. Prepaying for coverage quarterly, semi-annually, or annually also means you can save a bundle on your premiums.
Step 6: Canceling Your Current Policy
Once your new policy is active, reach out to your current provider to notify them that you want to cancel. You should follow their specific cancellation procedures, which could entail providing a written notice.
The provider should send over a confirmation of cancellation. Be sure to keep a copy of it for your records in case issues arise in the future. Also, request a refund for any prepaid premiums you’re owed, if applicable.
Step 7: Notifying Relevant Parties
You also want to notify your auto lender and leasing company about the switch to a new auto insurance provider. And share your new policy details with relatives or anyone else on your policy.
Step 8: Reassessing Coverage Regularly
Periodically review your insurance coverage to make sure it still meets your needs. Life changes, like buying a new car or moving, might affect your coverage requirements.
Also, review car insurance policy details and compare quotes at least once a year to ensure you’re still getting the best rates. If needed, set a calendar reminder so you’ll remember to review your policy annually to ensure you’re still getting the best deal.
Conclusion: The Benefits of Switching Auto Insurance
You could keep more of your hard-earned money in your pocket by switching auto insurance providers. Just be sure that the new provider you select is reputable, and be careful not to skimp on coverages to save money. The latter could leave you unprotected and be costly if you need to file a claim.
It’s also worth asking your current provider for ways to curb costs, especially if you’re satisfied with your current policy. They may be willing to extend discounts to you that you weren’t aware of or in an effort to retain your business.
