January 5th, 2015
If you're unhappy about your experience with a certain insurance company, then there's no need to remain stuck with high rates and bad service. Instead, you can choose not to renew your existing policy and take your business elsewhere. Because many policies cover only six-month periods, it can be fairly easy to cut ties with your insurer. However, if you have unpaid debts or pending claims, you'll have to settle these matters before you make the jump.
Find what you need
The key to switching insurers is evaluating what kind of coverage you need. If you already have home insurance, then bundling your auto insurance in as well could be a good move. Further, if you're interested in only liability car insurance, then you'll want to find a company that offers this basic service for cheap. Determine the amount of insurance you need. Then, hunt for a provider that can meet these needs at a better rate.
Get a good deal
There's no point in getting a new insurance company if you're not getting more bang for your buck. If you've upped your coverage, then you can expect to see a rate hike. That's standard no matter where you are insured. However, if you are looking to keep the same policies, then you'll need to do a little comparison shopping to see who has the best bargains in town. Remember, there are a number of factors that determine your insurance rate, including credit score and financial past, so make sure you have realistic expectations when approaching each new insurer.
Ask about discounts upfront and see how their services will benefit you more than your previous company. Make sure there are no hidden fees or gradual rate hikes because these expenses can add up considerably over time and make the switch not as profitable as you originally thought. Once you've settled on a company and you're certain that you can save money this time around, then speak with your family or financial advisor to get their opinions.
After you've agreed to become a policyholder with your new provider, you'll have to file all of the requisite paperwork and submit all of your financial documents. Insurers will look into your history and see if there are any red flags associated with your account. If you have a penchant for filing a lot of claims, then your application could be denied. Even if you get approved, you could be stuck with a higher premium or deductible. That's why it's necessary to work out the policy specifics.
Negotiate a deal that works in your favor when signing up. If you don't file claims often, you could save money with a higher deductible because your monthly premium will be cheaper. See how you can lock in rates and qualify for eligible rebates and other services that will save you money.
Cancel your old policy
Perhaps the most important part of the process is to make sure you don't have a gap in coverage. Between the time you switch insurers, you could be left with no insurance at all. If an accident occurs, you will be left to pay for damages out of pocket. Keep in mind that you shouldn't cancel your old policy until your new one goes into effect. This will eliminate the chance that you are left vulnerable to exorbitant damage costs or medical expenses.
Switching to a new insurance provider can be good for your bank account if you can find the right deal.
CoverHound can assist in your insurance comparison shopping.