Shopping and Switching Car Insurance Company Tips

Shopping for better car insurance rates is much easier than most people think and you can start saving almost immediately. There is a general misconception that

you can switch auto insurance companies only when your insurance is about to expire or at the renewal of your auto insurance term.

Staying with your car insurance company for a long time or showing your loyalty towards them doesn’t always guarantee better rates. Even if you haven’t had any issues with your car insurance company, shopping for a new car insurance policy to look for potential savings and a lower car insurance premium can make a lot of sense.

The good news is that you can switch at any time or as soon as you are ready or whenever you find a better deal or lower price for auto insurance premiums. You don’t need to wait until your current policy is about to expire.

The important thing is, make sure that you cancel your auto insurance policy properly when switching car insurance companies. knowing the process to switch a car insurance company can help to ensure that you get the best coverage. We are here to help and review step by step process on how to switch car insurance.

Switching your car insurance company or policy

* How to switch car insurance company: simple and 4 easy steps

* How to cancel your current car insurance policy

How to switch car insurance company: simple and 4 easy steps

Here are four steps to take when switching car insurance companies:

1. Shop and compare quotes

Remember: Shopping for car insurance quotes is always FREE!

First step: It takes just a few personal details to start getting multiple quotes for your car insurance needs. 

Compare car insurance quotes based on a wide array of options from as many insurance companies as possible. Online quote comparison services can get you auto insurance quotes from multiple companies at once, to compare and see all the savings you can expect.

Also, always remember that comparing extras and add-ons like discounts, telematics-powered policies, and more can make a significant difference in your overall quote. 

Another important point that some people often overlook is that many times a smaller insurance company or a local or regional auto insurance company can be just as effective and supportive as a major insurer.

2. Review and compare coverages

Some consumers often overlook coverage comparisons while focusing on lower or cheap auto insurance quotes. That’s a mistake that could turn very risky and actually cost you big later on if you are found to be underinsured while involved in an accident. Therefore it’s important to carefully look at your current insurance policy coverages and the coverage you’ll need going forward.

Carefully read and understand your collision, comprehensive, and uninsured/underinsured coverage? Understanding your deductible and how it impacts your auto insurance quote. 

To find and review what coverage you currently have, look for your current auto insurance declarations page.

3. Get your new auto insurance policy.

Once your research is done and you are ready to switch auto insurance companies, it’s time to buy your new auto insurance policy. 

Great! You’ve got a new policy now, a better auto insurance premium, and possibly even an improved set of coverages in your new policy. 

Remember: Now you have a new set of Declarations page and ID cards. 

Though many of the insurance companies allow you to access or download policy documents through apps on your phone, it might be a good idea to also keep printed copies of your insurance policy documents or ID, as a dead phone battery, lost phone or some other technical glitch could create unnecessary challenges and stress.

4. Cancel and verify that your old policy is properly canceled

Timing cancellation of your current auto insurance policy is the key!

It is very important to ensure that you don’t lapse and you don’t end up with a gap in coverage.  Wait until you have written proof that your new policy is active. A lapse in coverage makes you look like an irresponsible and risky person and can increase your insurance rates.

Once you cancel your old policy, your insurance company should send a refund check for any excess premium you paid. Your old insurance company will also send you a letter in the mail verifying that you’ve canceled your policy, which is very important and must be kept for records.

Important note: You must always cancel your old policy, rather than just stop paying. If your insurer cancels your policy for nonpayment, it can significantly impact your credit history, records, and future insurance needs and policy prices.

How to cancel your current car insurance policy

Great! You have just purchased a new auto insurance policy so now you should cancel your old auto insurance policy to avoid having active policies from two different companies and overlapping coverage. 

Immediately call your insurance company or agent to information that you wish to cancel your policy. It is very important to be specific about the date because you don’t want to run a risk of having a lapse or driving without active coverage.

Many of the top insurance companies like — GEICO, Allstate, State Farm — have instructions on their websites or on Apps for how to cancel, but it’s always a good idea to speak with someone like an agent or customer service at your insurance company. 

Remember to look into cancellation fees or refunds. Most insurance companies do not charge any fees for cancellation.  You may also be entitled to refunds if you have paid your auto insurance policy premium upfront. 

Last but not least, if you were paying through using automatic payments, remember to contact your bank to make sure automated payments to old insurance companies are stopped. 

Get a written notice from the insurance company that your coverage has ended.