According to the J.D. Power 2021 U.S. Insurance Shopping Study, nearly half of consumers (46%) changed how they controlled their vehicle insurance expenses in 2020. 15 percent of those who switched changed vehicle insurance companies, and 12 percent switched to a new insurer.
Here’s how to switch vehicle insurance carriers if your needs have changed or you simply want to browse around for cheaper car insurance.
4 Steps to Changing Car Insurance
Examine Your Automobile Insurance Options
Because vehicle insurance costs vary so widely between businesses, comparing quotes from different companies is one of the greatest methods to discover the best policy.
options for coverage, restrictions, and deductibles. While pricing is crucial, it is not the only element to consider. Do you require additional liability coverage in the event of an accident lawsuit? Is it time to get rid of your collision and comprehensive coverage because your car is a few years old?
Customer service and ease of use. The top vehicle insurance providers provide excellent service at a reasonable cost.
Speak with your current insurance provider
When you switch insurance companies, you want the new policy to take effect before the old one expires. Insurers provide you with the option of selecting an effective date. You can choose, for example, if your new policy starts right away or at a later date.
You can terminate your former insurance coverage once you’ve confirmed your new policy is in force. If you cancel an old policy before the new one starts, it could cause you a lot of money problems.
First, you won’t have auto insurance, which means you’ll be responsible for any car repair bills, property damage, and medical expenses if you get into an accident.
Second, most states make it illegal to drive without insurance, which can result in fines and license suspensions.
Third, driving without auto insurance causes a “coverage gap,” which means you’ll pay more for insurance when you do get a policy. Insurance companies think that driving without insurance is a bigger risk, so they charge higher premiums.
Always request a cancellation confirmation. In this manner, you can avoid having your prior company’s auto insurance coverage automatically renewed.
Insert your new insurance identification card
You must update your insurance ID cards now that you have a new vehicle insurance carrier. If you get into a car accident or are pulled over, you may be asked to show proof of insurance.
After you purchase a policy, your insurer will usually provide you with evidence of insurance through fax or email. Many insurers, however, provide an electronic insurance card that can be downloaded and stored on your smartphone or accessed via the company’s mobile app. In 49 states and the District of Columbia, digital insurance cards are accepted.
Contact your car loan or leasing company
If you have a car loan or lease, make sure to notify your lender or leasing company of the changes. Keep in mind that most lenders and leasing firms need collision and comprehensive coverage.
Reasons to Change Automobile Insurance Companies
You had a poor experience with claims. We rarely realize how terrific our insurance company is until we need to file a claim. If you’ve had a bad claims experience, you might be considering leaving.
Your insurance is about to expire. In light of this, it’s a good idea to examine your coverage before your existing policy expires. If you believe you are overpaying, you should consider switching providers.
You’re in the market for a new vehicle. When purchasing a new vehicle, you should ensure that it has enough coverage. If you take out a loan or lease, you may desire gap insurance, but not every organization offers this type of coverage.
You’re on the move. The cost of automobile insurance is affected by where you reside. However, not all insurers charge the same amount for coverage, which is why it’s a good idea to compare auto insurance quotes from several companies. Keep in mind that your current insurer might not cover you in your new area, which would force you to switch.
You’re about to tie the knot. The majority of insurance firms provide savings for insuring numerous vehicles under one policy. If you and your spouse have different insurance companies, now could be the ideal time to shop around for the best coverage and costs.
You have a teen behind the wheel. Adding a teen to your coverage can cost you over $2,000 in annual premiums. However, not all insurers charge the same rates for teen drivers. That is why it is worthwhile to browse around for the best young driver auto insurance.
You’re going to retire. You can say goodbye to the daily commute when you retire. You may wish to consider a non-traditional type of automobile insurance, such as pay-per-mile insurance if you travel fewer miles.