February 24th, 2014
After you spend time shopping around for car insurance and finally land on a policy, you may find after some time that you aren't getting the service you want or are paying too much. In any case, switching car insurance carriers can seem like a daunting task, especially if you are midway through your policy. However, there are some instances in which you need to switch and you might find great savings by jumping ship to find a policy that better suits your needs. Here are a few steps for switching insurance companies:
Evaluate your needs
Is there a specific reason you want to switch insurance carriers? Can you never reach a representative or do you find that your premium is sky-high after a minor fender-bender? Depending on what you dislike about your current policy or carrier, you can assess the needs that you are looking for in a new insurance company. Once you have a list of requirements or wants that you are searching for in an auto insurance policy, moving forward will be much easier.
Once you have a price point and list of requirements, you can start looking around for the best policy. Fortunately, you can do all your searching online by comparing service providers and prices at CoverHound. There are many different coverage options available on the market, each with their own limitations, deductibles and premiums, so be sure to research thoroughly to find the best rate and service. If you're unfamiliar with a certain company, take the time to read reviews regarding their customer service, as these might provide you with better insight to what it's like to deal with them if you have to file a claim.
Consider the cost
If you are still under contract with another insurance company and have more time left on your policy, consider how much it will cost to cancel the policy before signing up for a new one. While there could be some potential savings with your new policy, you might end up canceling those out by terminating another policy before the terms run out. If there's not much time left on your policy coverage, you might be better off waiting to purchase a new coverage plan until it runs its course.
If you do decide that the benefit of a new policy outweighs canceling your old one, go ahead and make the switch. If your old policy is set to expire, you won't have to pay any cancelation fees when you don't renew and sign up with a different insurance carrier. Make sure that there are no gaps when you switch your policy, as you don't want to be uninsured on the road for any amount of time. When you do sign up for a new policy, be sure to drive very carefully for at least the first 90 days. If you file a claim during the first few months of being with a new carrier, there is a greater chance that they might not want to renew your policy later on.