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How to Switch Auto Insurance Companies

Knowing how to switch auto insurance companies is very important, even if for many of us the answer seems intuitive. What is important above all is having an understanding that there is a process involved, and that abiding by this process is important if we are to move seamlessly from one carrier to the next without any hassle.

Reasons to Switch Insurance Providers

Drivers make the choice to switch auto insurance companies every day. There are many different reasons people might have for making a switch. It could be that they are simply moving to another state and their current provider does not offer policies in that state. Actually, even if you kept the same company, you'd technically be canceling a policy and starting another because auto insurance requirements vary from state to state.

Some auto owners are just getting rid of the car they have insured. Selling a vehicle obviously means you no longer need insurance on it at all. But some are switching companies, not cars. Dissatisfaction with the customer service of a carrier, or unhappiness with premium rates often come into play when drivers switch companies to represent them for their auto insurance needs.

Give Insurers Notice of Cancellation

There are numerous reasons why people choose to switch car insurance providers. But no matter what the reason might be, and whether or not the policy is even being replaced with another one, the insurer must receive adequate notice of the decision to cancel. If you do not give your insurer proper notice according to the terms of your agreement, you may end up paying for it. Cancellation fees and associated expenses are often the result of these actions, so make sure you're fully aware of how to cancel car insurance first.

Sometimes drivers are better off waiting until the end of a policy period to switch providers because the fees can outweigh the cost savings. On top of this, failure to adequately work out a transition between insurers can result in a coverage lapse which can negatively affect your credit history. Most insurers allow drivers to cancel their policies at any time during the covered policy period as long as they provide written notice indicating their choice to cancel and the effective date of cancellation. It is important to know that auto insurance coverage does not necessarily cancel out at the termination date of any particular policy period, so if you plan to go with a new insurer at the end of your current term you'll still need to find out what your current insurer requires in the way of notice. In many cases companies will not only send a renewal statement detailing the cost of the next covered policy period, but will also send drivers a bill automatically unless they are told otherwise.

Failing to properly cancel your policy and not paying that bill could result in the company canceling you (as confusing as that may sound), an action that will negatively affect your ability to secure affordable coverage when you go to buy cheap car insurance online going forward. And your failure to pay the bill could end up appearing on your credit report. It can be hard to get these sorts of things removed even if they are erroneous.

Find out Proper Cancellation Protocol

Drivers should not expect insurers to be totally forthcoming about sharing details regarding our obligations during the switching process. Usually the terms of a policy will state something to the effect of a driver having the right to cancel at any time. But these terms often fail to include any listing of possible repercussions that could follow if drivers do not give proper cancellation notice.

Failure to follow the correct procedures can actually harm your ability to obtain affordable coverage in the future. Insurers may look at it as a sign that you're a high risk to insure and charge you accordingly. Some companies will take advantage of any excuse they can get to raise their drivers' rates. But most of the time, as auto owners we can avoid this possible trouble by just taking care of our obligations and doing things right. Therefore, learning how to switch auto insurance companies can save you a lot of time and energy.

It is fairly simple to pull off. Just call your current insurance company as soon as you have made the decision to switch. Let them know you are canceling and give them an effective date. Find out if a letter advising them of your choice is enough or if they have a form for you to fill out. Take care of supplying written notice and do it exactly the way they tell you to do so that you are covered, and keep a copy of the letter or the form for your own records.

By making sure to supply auto insurance companies with the information they need and keeping them in the loop, drivers can avoid trouble when switching to a new company.


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