How to Switch Auto Insurance Companies
One of the benefits of sticking with the same auto insurance company has to be the fact that it’s just simpler not to switch. If you’re not unhappy with your company, you don’t have a compelling reason to look elsewhere. Unfortunately for many folks, auto insurance is one of those products that you really don’t know how well it performs until you need to use it – typically after an accident. The Catch-22 here is that, after an accident, your premium rates may go up significantly, and other insurance companies may not be willing to bring you on as a client.
Still, sometimes it’s just in your best interest to switch auto insurance companies. Whether you want to get a better deal on your premiums, or whether you’re moving from one state to another, there are some important steps you need to follow in order to make the transition as seamless as possible.
Here are the things you need to keep in mind when you’re getting ready to switch auto insurance companies:
- The standard practice for most companies is to allow you to cancel your policy any time you wish. Usually, you’ll need to send them written notice that also states the date of cancellation. Just not paying the next bill isn’t the way to go, because the company will still continue to bill you. If you don’t then pay it, that bill will wind up as a negative ding on your credit report.
- You’re better off canceling your policy than having it canceled. If for some reason you simply allow the policy to lapse and don’t pay it, that creates a cancellation on your record. Having a cancellation on your auto insurance record can send a signal to other potential insurers that you’re a high-risk customer, which will in turn lead to higher premiums.
- Don’t allow a lapse in coverage. Make sure that the start date for your new auto insurance policy coincides with the effective ending date of your existing policy. The last thing you want to have happen is to get in an accident while you’re temporarily uninsured. This is especially true if that interim is spent driving from one part of the country to another with all of your worldly possessions in your vehicle. If you’re in an accident or your vehicle is stolen, you’re going to be in a world of hurt.
Ultimately, switching insurance companies is a fairly simple process, as long as you keep these few things in mind.
