There are a couple of reasons why you may be thinking of switching from one car insurance to another.
Maybe it is because your current car insurance policy’s premiums and out-of-pocket costs are getting too expensive. Or maybe it is because you just found a new car insurance plan that works better for you.
But if you are planning on switching from your current car insurance plan to another, how do you do it? Here in this article, you’ll learn how to switch car insurance companies step-by-step.
How To Switch Car Insurance
Here are the steps along with some things to take note of when you are planning to get a new car insurance policy.
Consider Your Coverage Options
There’s not just one type of car insurance policy. Even from the same insurance company there are different coverage options to choose from.
So the first thing to do is decide what type of coverage you want. Do you want a full coverage policy or, do you want to roll the dice and go for minimum coverage to keep your premiums as low as possible.
Once you decide what type of coverage you want, you can start shopping around and compare apples to apples.
Check If You Will Be Charged With Cancellation Fees
Most car insurance companies allow their customers to cancel their car insurance policy fairly easily. But of course you have to let them know about your plans to cancel your policy.
Some car insurance policies may charge you cancellation fees. To know if you will be charged with cancellation fees, it is best to contact your car insurance company and ask.
Also, by contacting them about this, they may offer you better discounts on your current policy to try to keep you as a customer.
Compare Car Insurance Rates
If you are planning to change car insurance and you have not yet found a replacement for your current one, it is best to shop around.
Get quotes from different companies. And keep in mind the lowest rate policy may not be the best one. Check to see what the policy covers and what it doesn’t. Also, do some background research on the insurance company to see if they have a good reputation. And that they’re a company that should be around for years to come.
Have A Ready Car Insurance In Place Before Cancelling Your Current One
You will never know what will happen to you on the road or to your car. And if you do not have car insurance because you cancelled your previous one, this could be bad for you.
So if you already have picked the best option from your list of choices, it is best to make sure you have that coverage before cancelling your current policy.
Print Out Your New Insurance Card
If your new car insurance does not mail insurance cards and documentation, it is best to have a copy for yourself. You may even want to print two – one to keep in your car and one to keep in your wallet/purse.
Cancel Your Car Insurance Policy
Once you have made up your mind and everything is settled, cancel your current car insurance policy. Here are the steps to do it:
- Contact your current car insurance policy and inform them that you are cancelling your policy
- For auto-payments, log in to your online account that transacts payment to the car insurance and cancel auto-withdrawals.
- Ask your current carrier to confirm termination in writing
Request A Refund Of Unused And Prepaid Premiums
Although your current car insurance may do this without you asking, it is still best to ask them. And check to make sure the money gets to you (either by check or a direct deposit to your bank).