What you need to know about switching auto insurance

What you need to know about switching auto insurance

September 5, 2016
switching auto insurance
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Most humans are creatures of habit. That’s why it’s so hard for many of us to go looking for change. Even if that change involves car insurance. But switching auto insurance can be a good thing. If you didn’t know it, it is a great way to save money.

If you’re ready to switch to a new auto insurance policy, here’s what you need to do.

1. Shop around

If you really want to save, then shopping around for a new policy is the best way to do it. It requires a lot of legwork, but it will definitely pay off in the end.

Most auto policies are issued for six months or a year. It’s more than enough time for you to check out what other insurers have to offer. Collect as many offers as possible and compare the rates to get the best deal.

You lose nothing by shopping around. In fact, you only stand to gain. Sometimes you don’t even need to change insurance companies in order to save money. Just talk to your agent and tell him that you received a better offer from a rival company. It may be enough to get an even lower rate.

2. Investigate your new provider

Saving money is great, but don’t let it blind you. If an offer sounds too good to be true, it might not be. There are a lot of thieves out there and they’re always looking to steal your money. And even if this is not the case, you might just stumble upon a company that doesn’t pay claims on time or one that is likely to blame you for an accident. So check out your new insurer thoroughly before signing on. Most state insurance offices monitor carriers’ customer complaint ratios. You might want to take a look at those.

3. Make sure you’re protected at all times

Make sure there’s no gap in your coverage as you change insurance companies. Don’t cancel your old policy before signing the new one. It could leave you exposed and create a lot of legal and financial problems if you have an accident.

4. Take care to cancel your old policy

Make sure your old policy is canceled. When switching car insurance, it’s important that you simply don’t stop paying premiums for your old policy. You won’t cancel your insurance this way. You’ll only hurt your credit. Be sure to call or write to notify the company that you’re ending your policy and are going with someone else. And don’t forget to ask for a written confirmation of the cancellation.

Thomas Hookton is a finance journalist, history buff and science fiction connoisseur. Hit him up via email.

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