Essential Tips to Switch Your Auto Insurance Policy

Searching for auto insurance is generally complicated because there are a lot of variables to consider. Perhaps you are looking for a policy that aligns with your finances. If you are not satisfied with your current rates, switching policies may be the right move.

Switching auto insurance carriers at the right time can help you find a lower monthly premium. Common reasons for shopping around include a new vehicle, lifestyle changes, or credit changes. Since auto insurance carriers look at multiple factors, one significant change to your driving profile can alter your rates. Here are a few easy car insurance switching steps if you are considering switching auto insurance carriers.

  • Shop Around

    If you are planning to shop around, it is recommended that you compare rates from multiple providers. Many sites offer a quote comparison tool, which allows you to compare rates within seconds. Inquire about potential discounts which can help lower your rates. You can also inquire about enrolling in a pay-per-mile program to help you save money. Once you have identified a couple of finalists, research their customer service rating and previous claims experience.

  • Cancel Your Ongoing Auto Insurance Policy

    Once you have decided to move forward with your new provider, prepare to start the cancellation process for your current policy. Avoid a lapse in coverage, as even a small gap can cause your insurance rates to rise substantially. You can opt for an effective cancellation date if you forget to cancel your policy. If you paid your policy in full, you should receive reimbursement for the unused premiums.

  • Notifying Your Lender

    Be sure to list your lender on the new policy if you are financing or leasing the vehicle. You will likely be required to purchase full coverage on your vehicle. Keep in mind that the lender will still expect you to pay off the loan even if your car is destroyed. Notify your lender immediately if you are purchasing new insurance. Inform your lender about the details of your new policy.

Things to Consider

Generally, you can switch your auto insurance at any time. Check with your insurer to see if there is a cancellation fee if you switch carriers. Perhaps it may make more sense to let your policy expire instead of canceling it. Also, try to avoid switching carriers if you have any open claims, as that could lead to higher premiums.

Consult with Family Financial Insurance Group

Relying on these tips can help you make an easy transition from one carrier to the next. Searching for discounts is recommended, as that can help lower your premium. If you have any questions about your insurance, contact the team here at Family Financial Insurance Group, and we will assist you.

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