One may think that changing car insurance policies is a complicated process.
So many people don’t bother changing their policies, even if they know they’re getting overcharged, and can save a lot of money by switching.
But, if you decide to suck it up and go through the process to change your policy, you may be wondering, “Can I change car insurance before renewal date?
The answer to that question may affect whether or not you try to change your policy. So let’s get right to the answer and see what you need to know when it comes to changing auto insurance policies.
Can I Change Car Insurance Before Renewal Date?
The short answer is yes; you can change car insurance policies before the renewal date. It is totally doable to change your policy whenever you want to.
However, changing your car insurance policy before the renewal date comes with a few challenges of its own. In addition, you may have to pay a lot of additional fees.
Cancellation Fees
One of these fees is known as a cancellation fee. Not all car insurance policies impose cancellation fees. But you should look into whether or not yours does so you don’t have any unexpected surprises.
Your car insurance provider may charge you a flat fee for cancellation fees. These fees may range between $30 and $50.
Alternatively, you may pay for a short rate cancellation. A short rate cancellation imposes a penalty that costs the same amount to a specific percentage of premiums, depending on how many days are left on your policy.
Grace Period Payments
You may also have to think about payments during the grace period. Suppose you cancel your car insurance policy during the grace period before your payment is due. In that case, your car insurance provider is still covering you for days that you have not yet paid for.
In cases like this, you owe your car insurance provider for it.
Changing your car insurance soon after being involved in an accident is not a good idea. The same could be said for violating a traffic regulation.
And it is even worse if the traffic regulation violation or accident is recent. Doing this will cause your next car insurance policy to be more expensive.
The reason is that car insurance providers will see you as high risk, making it difficult for them to insure you. They do not see you as trustworthy as others and will need to protect themselves and their business.
Coverage Gaps
Another thing to think about when you plan to change car insurance policies before the renewal date is coverage gaps. If you plan to change your car insurance before the renewal date, ensure you already have a new one before your old car insurance policy ends.
In conclusion, you can change your car insurance policy before the renewal date. However, it will be more challenging to do so.
To avoid these challenges, you can switch car insurance policies long before your renewal date. Sure, there’s still a chance you will get charged a cancellation fee, but think of the money you’ll save in the long run just by switching.