How to Switch from One Auto Insurance Company to Another

If your insurance company isn’t working out for you anymore, then definitely consider switching. In fact, there are very many reasons as to why switching insurance companies may be a good idea for you.

First, and most important, if you are unhappy with the service or coverage that your present auto insurance company is giving you, then you should definitely consider making the change. Another valid reason is if you find another auto insurance company that is willing to offer you the same service that you are getting from your current insurance company for a better price, then you should consider switching. Another reason is if you want to move up a plan, or get one with more coverage, and your current insurance company does not have the plan that you want, or cannot match it, then you should switch.

Switching insurance is not hard, given you follow these easy steps.

The first thing you need to do is check when your current car insurance plan is set to expire. This is how you know when to make the switch, while you still get your money’s worth from your current plan. Do not switch insurance companies after you have just paid for your current insurance; switching to another one just means you’ll be paying twice the amount.

Wait until 3 to 4 weeks are left on your current insurance policy. It is usually around this time that the company will send you a renewal notice. The notice will tell you about your coverage, the discounts they provide, as well as the premium amount you have to pay. If you want, you can use this description as a shopping guide in choosing your new car insurance policy.

If you have found another insurance policy with another auto insurance company that you feel happy with, then you may cancel your current insurance. However, make sure you sign up with your new policy first before cancelling your old policy, as it is not advisable to be driving around uninsured, even if it is just for a day. You can even tell the new insurance company of the date your old insurance is set to be cancelled, so that the policy that you get with them can start then.

Remember that all auto insurance companies actually give their clients the prerogative to cancel their insurance policy at any time. So, in actuality, you can actually do it at any time, but keep in mind that some companies do charge a cancellation fee, especially if you decide to cancel your insurance coverage in the middle of your policy. This is why it is best to wait until your term with your old insurance company actually ends.

To cancel your auto insurance policy, all you need to do is inform the insurance company in writing. In your letter, state the date you want the policy cancelled as well as the reason. Your reasons can be anything from having sold your vehicle, which they may ask for a deed of sale, or more personal reasons.

Your old insurance policy may ask you to present a copy of your new policy upon cancellation. This is because insurance companies are legally supposed to report cancelled insurance policies to the state insurance department. This is the state’s way of keeping track on drivers that may be possibly uninsured. If you show them a copy of your new policy, then they cannot report you to the state as an uninsured driver.

Lastly, to make sure your insurance policy has really been cancelled, look out for an official policy cancellation notice that you should be receiving in the mail a few days after you have cancelled your old coverage. This notice should state the date and the time when your old coverage has stopped. If you do not receive this notice, do not hesitate to call the company and follow up. This is just to make sure your cancellation has indeed been processed and you will not be billed for insurance coverage with their company.

Now that you have cancelled your insurance, you can sign up with a new insurance company that suits your needs more!

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Sam Briones writes for SafeAuto, covering an array of topics from finding cheap auto insurance to safety tips.