If you’ve decided to switch car insurance companies, you may be wondering how to do that, and if there will be fees involved. Switching your auto insurance isn’t hard if you know what to do.
It may be easier than you think!
Regularly review your auto insurance coverage to make sure that you’re receiving the best insurance value for your money. You will find that it pays to shop around. In most states, premiums for identical levels of coverage vary widely among different companies. The reason for this price variation involves many complicated factors.
One of the biggest factors is a company’s claims experience with policyholders in your coverage group (e.g. people of similar age, number of accidents, type of vehicle, etc.). For example, if a large number of people in your coverage group files claims during a given year, your rates will likely rise. When this happens, better discounts and lower overall premiums may be available at other insurance companies.
Why switch auto insurance companies?
There are many reasons to switch car insurance companies. You might be unhappy with the service that your present company provides, or perhaps you’ve simply found another insurer willing to offer you the same level of coverage for considerably less money. Nowadays, performing a regular car insurance rate check-up and investigating your options has never been easier. When you decide to switch your auto insurance to another company, you’ll find that it’s fairly easy to do so.
Be sure to get new car insurance first!
Always have a new policy in place before cancelling your old auto insurance coverage. You don’t want to have a lapse in car insurance for even one day. Your new insurer will be able to time the onset of your new policy to coincide with the cancellation of your old coverage.
When to switch policies
The best time to shop for insurance is about 3 to 4 weeks before your old policy is about to renew. Depending on the regulations in your state, a renewal notice will be sent to you approximately a month before your new policy period begins. The notice will describe your coverage, discounts, and your premium amount. Using that information, you can shop on the internet for the same coverages to see your options.
You don’t have to wait until renewal
All standard auto insurance policies contain a provision giving you the right to cancel your policy at any time, once proper notice is given to the insurance company. You don’t need to wait until renewal time. However, cancellation before a policy has renewed makes more sense. That way, you don’t have to worry about recovering the unused portion of your paid premium. But if you choose to cancel in the middle of a cycle, the company will prorate your latest premium payment up to the cancellation date and return the remainder to you.
Will they charge a fee?
Unfortunately, some car insurance companies may charge a special “short rate” cancellation penalty if you cancel in the middle of a policy term, so be sure to ask before you switch. If they do charge a penalty, you will need to decide if the better rate outweighs the fee you’ll pay. Remember that many companies offer earned accident forgiveness, future renewal discounts, and other benefits that grow with or depend on the amount of time you maintain a policy with that car insurance company.
How to cancel your old auto insurance
Generally, all you need to do to cancel your auto insurance policy is to inform your insurance carrier in some recoverable format, indicating the specific date you would like the insurance policy terminated and also the reason behind the termination. If you have sold a vehicle, you might be asked to supply a bill of sale, but only when you’re asking the insurer to “backdate” the termination. If you’re merely changing to a new insurance company, there is no need to prove this, unless of course you’re cancelling an insurance policy mid-term.
Is it legitimate for my current insurance company to inquire about my brand new policy?
Nearly all states’ insurance laws and regulations genuinely require the insurance company to ensure that you’ve a new insurance plan for your vehicle prior to cancelling your previous policy. This is because most insurance providers need to report policies which are terminated to the state insurance department, in order that the state can keep an eye on drivers without insurance. This can help lower the number of motorist without insurance. When they allow you to terminate your old policy with no proof that you had a new insurance plan, they would need to report you as uninsured.
You need to verify cancellation
Do not just walk away from your previous policy without having formally cancelling it, since most insurance policies are “continuous” – meaning your policy will still be renewed every 6 or twelve months, if you don’t cancel it. In the event you neglect to cancel, your car insurance carrier will still bill you for insurance and can eventually cancel the insurance policy for failure to pay. After that, you might have bills to contest and telephone calls to make! It’s often simpler to cancel in writing when you are ready to change.
Once you obtain an official insurance policy cancellation notice from your auto insurance carrier stating the time and date when your insurance coverage will stop, you will be sure your termination was processed accurately.
Find out if your insurance company is giving you the cheapest price. Compare Florida SR22 insurance quotes online and see if you can easily save as much as $450 right now!
