How to Switch Your Car Insurance Policy Smoothly

You reach a certain point in your life when it makes sense to switch auto insurance providers. Finding a new policy that aligns with your new goals may take some time. Here are some tips to guide you through the process.

When Should You Switch Auto Insurance Carriers?

Multiple lifestyle changes may cause you to consider changing your auto insurance. Perhaps you are moving to a new state which may impact your auto insurance premium. Look for carriers around your new address to avoid a potential premium hike.

Maybe you are the parent of a teenage driver. If your child is ready to start driving regularly, shopping around can help you find an affordable premium. Your teenager may even qualify for a student discount.

Buying a home is another life-changing event and is a good time to update your policy. Or maybe it is simply time for you to renew your current auto insurance policy, and you would prefer to assess your options. Starting a new policy on the renewal date of your old policy can help you avoid potential auto insurance penalties. Regardless of the reasons, here are some tips to help you switch auto insurance carriers.

  1. Assess Your Coverage Options

  2. You must know exactly which types of coverage you need. Minimum auto insurance coverage may leave you vulnerable in the event of an accident. However, there’s also a chance that you are paying too much for coverage. Learning about the different types of auto insurance coverage can help you make the best decision.

  3. Talk to Your Agent for Insights

  4. It’s recommended that you contact your current agent before switching auto insurance companies. Your agent may be able to help you buy a new insurance plan at a better rate. For example, they can recommend different discounts and other ways to save money. If you are having a financial issue, most carriers will work with you to help lower your costs. If you’re working with an independent agent, they work closely with multiple carriers, so they may be able to help you find coverage that aligns with your budget.

  5. Compare Quotes from Multiple Insurers

  6. If you plan to switch auto insurance companies, it’s recommended that you get multiple quotes from several insurers. This allows you to compare premiums and potential discounts. Auto insurance companies ask for basic information to set up your quote, including your address, vehicle model, and the year of manufacture. In some cases, you may be asked about personal information such as your Social Security Number to source your credit history.

  7. Avoid Auto Insurance Penalties

  8. Before switching carriers, find out whether you will be subject to any penalties. Many drivers are unaware that they may be charged a cancellation fee. However, most insurers waive this fee as long as you give them proper notice before canceling the policy. Generally, your insurer will reimburse your unused premium. Talk with your agent regarding potential auto insurance penalties. If you seek to cancel your policy in the middle of the term, you may be subject to multiple penalties that could negatively affect your finances.

  9. Avoid Potential Lapse in Coverage

Having a lapse in coverage is a dangerous situation. A lapse occurs when you switch carriers before your current policy expires. If your car is damaged in the lapse period, you’ll have to deal with financial and legal headaches. If you are responsible for the accident, you’ll have to cover any repairs, medical treatment, and other expenses out of your pocket. Depending on the seriousness of the accident, your license may be suspended. Driving without auto insurance for an extended period of time will cause your premiums to rise on your next policy. Insurance companies will classify you as a high-risk driver. You can avoid a lapse in coverage by getting a new policy as soon as your old one ends.

 Contact Burton A. Harris Insurance Agency for Expert Advice

Figuring out whether it is in your best interest to switch auto insurance carriers can be complicated. You have to assess multiple factors, and these tips can help guide you and figure out the right solution. If you have any questions regarding auto insurance, contact our team at Burton A. Harris Insurance Agency.