Easily Switch Car Insurance Policies with These Four Steps
Before you switch car insurance companies, there’s a few things you should know. There is a right and a wrong way to change car insurance companies. You could hurt your credit score and possibly raise your premiums with your new company by doing things the wrong way or in the wrong order.
What should you know when you switch insurance companies?
We’ve got a short 4-step list to help you change insurance companies safely, while hopefully saving time and money.
1. Shop around for your new insurance policy.
Before switching insurance companies, you’ll want to do your research for the perfect new policy. We can help you compare car insurance prices from lots of reputable car insurance carriers at once, but you’ll also want to research what coverage level you need.
2. Start a New Policy before Canceling the Old One
Ideally, you should always start a new car insurance policy before you end your old policy. Gaps in coverage aren’t viewed favorably by insurance companies and could end up costing you money.
3. Cancel Your Policy on Your Schedule
You don’t have to wait until your policy renews to cancel. As long as you notify your current auto insurance provider, usually in writing, there shouldn’t be any problems. If you decide to cancel in the middle of a cycle, your insurer will refund you the unused portion of your premium. We’ve got more on how to cancel your insurance, too.
4. Don’t Forget to Pay for Bills on Your Old Policy
Believe it or not, it’s not uncommon for people to switch car insurance policies and simply cease to pay (or fail to cancel) their previous policy. Not paying bills can negatively affect your credit score and you could be held accountable for missed payments and late fees, so be sure to cancel your old policy. Not paying is not a valid option!
It’s always a good idea to shop around for car insurance.There’s nothing wrong with switching, you deserve access to the best price on car insurance, just like any other product. Just make sure that, should you choose to switch car insurance companies, that you do it the right way.
Buying auto insurance can be confusing. We want to make sure that our users make informed choices about their car insurance, selecting from as many options as possible. Read our Auto Insurance Buying Guide to educate yourself before you start a quote.