Perhaps you’ve been with your car insurance carrier for some time, and the customer service isn’t as good as it used to be, or your premium prices keep rising. The good news is you don’t have to stick with a car insurance provider you’re no longer satisfied with. Here are four simple steps you can take to change your car insurance.
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Compare Coverage From Multiple Companies
Car insurance rates can vary significantly from one provider to the next, and that’s why it’s worth taking the time to compare quotes from multiple companies. In addition to price, you should compare coverage options, limits, and deductibles. When comparing a new provider’s rates to your current coverage, ensure you compare similar coverage to what you already have.
While you want to find lower prices, you don’t want to be underinsured because you’ve purchased less coverage than you currently have. If customer service is an issue, you’ll also want to read customer reviews to ensure that your new provider offers convenience and good customer care.
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Contact Your Current Provider
After you choose a new provider, contact your current insurance company and notify them of your intent to cancel your policy. You can cancel your old insurance immediately if your new coverage is already in effect. However, if you’ve chosen a future effective date for your new policy, you’ll have to keep your current policy in place to avoid a lapse in coverage.
Allowing your coverage to lapse between policies could result in future providers raising your rates by hundreds of dollars because they’ll view you as an irresponsible driver. Plus, driving without insurance is illegal and leaves you on the hook financially if you’re in an accident. Be aware that you might have to pay a cancellation fee for ending your current policy before the expiration date. However, if you’ve prepaid for your coverage, you may receive a refund. In either situation, make sure you receive cancellation confirmation to ensure that your old policy doesn’t automatically renew.
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Update Your Proof of Insurance
If you get pulled over or are in an accident after purchasing new insurance, you don’t want to get caught driving around with your old insurance cards. Make sure you print out copies of your new insurance cards from your provider’s website as soon as they’re available. You can also store a digital copy on your smartphone.
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Contact Your Lender or Leasing Company
If you still owe money on your car loan or you’re leasing your vehicle, you’ll need to provide your lender or leasing company with your new policy information. Most lending and leasing require drivers to maintain collision and comprehensive coverage. If your lender thinks you’ve let your coverage lapse, they can repossess your vehicle or charge you collateral protection fees. You can avoid these situations by notifying your lender as soon as you change your insurance.
As you can see, it isn’t difficult to switch insurance companies if you’re unhappy with your car insurance provider. Finding a company that offers better prices and customer care can make the experience of owning a car less stressful and more enjoyable.
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