The Motors Alley
Accessories & Financing

7-Step Guide to Switching Auto Insurance Companies

Most people buy an auto insurance plan and stick with it for years and years. But, did you know that comparison shopping and switching your policy to a different insurance company could save you hundreds of dollars? Here, we tell you how to go about switching car insurance companies.

Compare Auto Insurance Companies

It’s a good idea to get insurance quotes from at least three companies if you are considering changing your insurance company. Once you get the quotes, make sure to also compare the policy features along with the cost of the policy. You should also look out for freebies and perks that could pay off in the future.

Research the Company

While the price is an important factor, it’s vital that you not overlook the reputation of the company. Otherwise, you may end up buying a policy that has a low rate but end up struggling due to a bad claims settlement experience.

Get in Touch with Your Current Auto Insurance Company

Before you actually switch to a different insurance firm, get in touch with your current car insurance company and see if they are willing to offer you a better rate or match the offer you currently have. If they can’t bring down your rate, check how to go about canceling your policy.

Inquire About Cancellation Fees

Ask your current insurer upfront about any possible cancellation fees or refunds. Most companies allow you to cancel your policy for free, but some may charge you a fee if you do it during the policy term. Some companies may even give you a premium refund if you cancel your policy well before the end of the policy term.

Ensure You Don’t Have a Coverage Gap

Make sure to only cancel your current coverage once the coverage of the new plan starts so you can avoid a coverage gap.

Change Your ID Card

Ensure that you change out your old auto insurance ID cards with new ones from your current insurance company.

Let Your Lender Know

If you purchased your car on loan, you may be required to inform your lender of the change in policy coverage. This is because many car loan companies will require you to have a certain level of coverage (usually including comprehensive and collision coverage).

Related posts

4 Things You Need to Check When Comparing Used Car Loans


5 Things You Shouldn’t Do When Renting a Car


TIPS: How to Finance a Used Car