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How to Switch Car Insurance Companies

How to Switch Car Insurance Companies

According to the Insurance Information Institute, there are nearly 2,500 auto insurance providers in the U.S. Though this number is overwhelming, it also means you aren’t stuck with your current insurance provider. There are plenty of other options out there. Are you unhappy with your present car insurance company? Maybe the premium is too high or you had a difficult time with a past claim. Either way, you’re in the market for a new auto policy. Thankfully, with proper steps, it’s easy to switch your car insurance company. 

Research State Laws

Before you begin the process, make sure that you are legally able to switch providers. Some state laws prevent you from cancelling an insurance policy within a certain time frame (usually 1-2 months). These laws are in place to prevent people from scamming the system. Otherwise, a driver could buy a policy to fulfill the insurance requirement and then cancel immediately after. 

Compare Multiple Quotes

As a general rule, it’s wise to get three quotes before you hire anyone for a service. Obviously, you’ll want to look for lower rates; however, there are other factors to consider, as well. Compare the coverage types, deductibles and limits to make sure the policy is worth the price. You should also examine other perks like accident forgiveness and safe driver deductions. 

Read Insurance Company Reviews

Before you settle on an insurance company, scour the internet for reviews. Check social media, Google, Yelp, and the Better Business Bureau. Does the insurance provider have low ratings and a high percentage of complaints? If past customers had trouble filing claims, it’s likely that you will too.

Talk to Your Current Insurance Provider

Before you decide to make the switch official, give your current auto insurance company a call. If you’re looking to lower your premium, they may be willing to match a competitive rate in order to keep your business. You should also ask about cancelation fees or refunds. When you cancel your policy before it expires, you may be subject to early termination fees. You could also be eligible for a refund. Say you paid 6 months in advance but decide to terminate after 2. It’s possible that the insurance provider will reimburse you for those remaining 4 months. These details are important to know before you change providers.

Sign a New Policy Before Cancelling the Old One

If you cancel your current policy before purchasing a new one, you’ll be left with a gap in your coverage. Not only is this illegal in some states, it also makes you vulnerable. If something happens to your car during this time, you won’t be able to file a claim to recover losses. Insurance companies could also view this action as irresponsible, placing you in a high risk category. High risk policies always have more expensive premiums.

Remember to Print Out Your New Insurance Card

Once you sign a new car insurance policy, don’t forget to print out the ID card. You should also toss out the old one to avoid any future confusion. Most states require proof of insurance when you get pulled over or survive a car accident. Though digital ID cards are typically available, it’s smart to have a back-up in case your phone dies or gets lost.

Nickerson Will Help You Switch Car Insurance Companies

Looking to buy a new car insurance policy or switch providers? Nickerson Insurance Services, Inc., will guide you every step of the way. As an independent insurance agency, we represent you, not the provider. Over the past 60 years, we’ve built a network of partnering insurance carriers with outstanding reputations. So if you are dissatisfied with an auto insurance policy, we’re confident that we can find a first-rate replacement. Contact us today to get started with your new car insurance policy.

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