How to change your auto insurance policy?
A policy with an auto insurance provider is not a commitment for life. You may find that your situation changes and you need to switch insurers. You can change car insurance providers at any time. This could help you save money.
Why you should switch auto insurance companies
- Different Driving Habits — Perhaps you drive less now that you work from home. If this is the case, it may be worth replacing your existing policy with one that offers usage-based insurance.
- Lifestyle Changes — A change in your lifestyle can affect your insurance profile. A change in lifestyle can include getting married, buying a home or car or changing jobs.
- Changes in driving history — The driving history you have can affect your insurance rates and may require that you look for other options. A ticket or an accident, for example, could result in a rate hike or force you to switch insurance providers.
- Add or remove drivers on your policy — If you need to remove or add drivers, it may be worthwhile switching car insurance. Addition of a teenage driver can have a significant impact on your insurance rate. It’s a good idea to compare quotes in this situation to make sure you get the best price on your insurance.
- Not happy with your current service provider — An unpleasant experience with your existing provider could lead you to switch. You may have had a bad experience with customer service or claims.
- You need coverage that is not provided by your current insurance provider — Perhaps you are looking for a specialty coverage your current insurer does not offer. Not all insurance companies insure classic cars, for example. If your current insurer does not offer classic car insurance, then you will have to find another one.
- Looking for the best rate —Your situation may not have changed but you still want to get the best deal. Compare prices with different insurance companies to make sure you are getting the best deal.
How to change car insurance companies
You may be able to get better rates by switching car insurance providers.
Avoid lapses in coverage when switching. In most states, liability insurance must be carried. If you are caught driving without insurance, your license could be revoked. Consider these factors when changing auto insurance companies.
Calculate how much car insurance you need
If you are switching auto insurance companies, make sure that your new policy offers all of the coverage you require.
First, you should check the minimum requirements for coverage in your state. Some states require that drivers have at least a certain amount of liability insurance, while others require them to purchase other types of insurance such as uninsured motorist or personal injury protection. Your new coverage must meet or exceed the state minimums.
Choose coverage that meets your lender’s requirements if you are financing or leasing a car. Some lenders, for example, may require that you get gap insurance when financing a vehicle.
Some drivers are also legally required to have SR-22 coverage. Drivers with a DUI, or those who have been involved in several accidents at fault may be required to file an SR-22. If you are required to submit this form, choose an insurer that provides coverage in this case.
Consider adding optional extras, discounts and bundles
After you have covered the basics, it’s time to look at optional add-ons. This list can include options like uninsured/underinsured motorist, roadside assistance, rental car reimbursement, comprehensive and collision coverages.
Research car insurance discounts before you buy. You may get a discount if you insure more than one vehicle with the same insurance company, or if you purchase your home and auto insurance from the exact same provider.
Compare car insurance rates every six-months
You should shop around for the best rates at least once or twice per year. This may seem excessive but keep in mind that many things can change during this time period.
Compare quotes for car insurance from several companies. Online comparison tools can help you to centralize your search. When comparing providers, don’t forget to take into account available discounts. You’ve chosen your new insurer and are ready to cancel your existing policy. Check to see if there will be a cancellation charge if you cancel before the policy’s term ends. If you already paid for coverage but it’s not been used, you may be eligible for a reimbursement.
Buy a new policy of auto insurance and cancel the current one
It is important to purchase new coverage prior to cancelling your old policy when switching insurers. Make sure that there is no gap in coverage between your old policy and the new one. If your old policy ends on July 1st, make sure that your new one takes effect at the same date or earlier.
You could face a fine in some states if you drive without insurance. This is true even if the lapse was temporary. If you are in between policies, you could be financially responsible for an accident if there is a lapse.
Print or download the new Insurance ID Cards
Print or download your new ID card after you have purchased new insurance coverage.
Most states permit digital cards to be displayed on mobile devices. You may have to download a digital version of your card from the website of your insurer if you wish to use it. Some insurers will display your digital cards within their mobile apps. Do you prefer a physical card instead? Print it off the website of your insurer if you prefer. Keep the card in your wallet or purse for quick access in case of an accident or a traffic stop.
FAQs on switching car insurance companies
Can you cancel your car insurance when you change?
It is important that you cancel your previous car insurance policy once you switch to a different provider. You shouldn’t stop paying your premiums while waiting for the insurance company to cancel the policy. You may be viewed as a bad driver by other insurers if you choose to stop paying your premiums and wait for the insurer to terminate the policy.
Can I switch insurance companies before renewing?
Before renewing your insurance, you can switch companies. Some insurers will charge you a cancellation fee if you cancel your policy early. This fee may be avoided by cancelling at the end your policy period.
Can you cancel your car insurance policy at any time?
Cancelling your car insurance is possible at any time. Some insurers charge a cancellation fee if the policy is cancelled before it renews.