As a motor insurance policyholder, you may wish to switch your car insurance provider—poor claims experience, customer service, lack of tailored premiums, and more. Hence, doing it might seem daunting, but it could be a very straightforward process if you know how to go about it.
Switching your car insurance provider can be one of the best ways to get a great deal and save money while providing the necessary cover for yourself and other road users.
Few Reasons Why People Change Car Insurers.
Bad Experience with Insurer: Sometimes, we don’t know how good or bad an insurance company is until you experience them. If you had a terrible experience with your insurance company, especially while filing a claim, you might be looking to change providers.
New Car, Change of Policy: The type of car you drive is vital in determining the cost of your premium, so if you buy a new car, your current insurer might not have reasonable offers for your new vehicle.
Moving Cities: Where you live also affects the cost of your insurance premium, it’s possible to find an insurance company that would give better deals for your new location. It’s also possible that your old insurer doesn’t cover your new area and now you need a new insurer.
Need to Insure Multiple Cars: This could be because you now have more vehicles in your garage and are looking to get group insurance, or you got married and are trying to merge your spouse’s insurance with yours. When combining multiple cars for insurance, you might need to shop for a good policy.
Driving Less: Maybe due to changing jobs, house, or even retiring. If you no longer move as much as you did before, you should be able to secure a discount, and if you don’t, you might need to get a new provider.
Steps To Take To Switch Your Car Insurance Policy
To start switching your insurance provider, you need to consider your needs and your available options. Whether to save money, have a better service experience or a new car, these steps would help you.
Determine the Right Policy and Consider all Options
Too much insurance on your car would mean overpaying, and too little insurance can expose you financially. Hence, you may need to understand the types of insurance coverage available to you and select the most-suited ones.
Once you have a list of your desired coverage, you can now shop around. Compare plans and rates from different insurance providers. Consider the ones that have the discount options that you qualify for.
When comparing quotes, pay attention to the coverage options and limits, your deductibles, and the insurance premium payment flexibility. It would save you in the long run.
Reach Out to Your Old Provider
Before you finally make the switch, reach out to your insurance provider, and ask about cancellations.
Sometimes, there might be a clause for opting-out in your contract like a cancellation fee, a reasonable notice period, or maybe even a refund of your unused premium.
Auto insurance companies most times give you the right to cancel at any time, but you should still ask questions about cancellation. If not, you might be leaving money on the table or incurring avoidable fees.
Learn More About Your New Provider
The worst thing that can happen is switching your provider and realising that the new one is bad or even worse than the old one.
You want to know what their customers say about them to determine what they love and where the provider has a lapse. How do they handle claims? Can they pay out claims instantly in minutes powered by Octamile, or do they still make excuses when you make a claim?
You want to ensure that you work with licensed insurers and don’t regret switching insurance providers. There are many low-priced and fake motor insurance policies out there, and you must avoid wasting your money and time with them.
Purchase Your New Insurance Policy Right Away
Driving without car insurance for even one day can be very dangerous. Before you cancel your old insurance policy, ensure that you have a new one in place at least one day before the old one gets cancelled. Else you will be dealing with an insurance coverage lapse.
When switching insurance companies in the middle of your policy period, schedule the new coverage to begin whenever you would like before the old one ends.
You should only end the old one when you get a confirmation from your new insurance provider that your policy purchase was successful.
Cancel Old Policy and Move to New One
If you have an automatic recurring charge on your card, you should double-check that the policy is cancelled. If not, you will still get your premiums deducted.
Also, if you pay manually, do not assume that your insurance has been cancelled because you stopped paying premiums. You should contact your current provider to notify them that you are terminating your policy. If you signed up for auto-payment, ensure it is cancelled and depending on your carrier, you will need a written termination document. It could be a physical form, an online termination form etc.
The last step is to print out your new insurance card whenever you need to provide it.
When It Is Not Advisable To Switch Car Insurance
Sometimes, switching insurance might not be the best thing to do. If you have examined all your alternatives and your issuer still provides excellent coverage and cost, staying with your current insurer makes sense.
The risk of changing your car insurance sometimes means that you won’t get a refund of your policy payment, and it might not give you the best value for your money. Consider bundling your other insurance policies too.
If you bundle your home insurance, device insurance and auto insurance with one provider, you eventually get to save money and pay less on premiums.
In conclusion, while it takes time to find the best rate and switch your car insurance company, it is a worthwhile process.