Switching your auto insurance policy before your policy expires can be a complicated process. Many people switch companies in order to save on their premium, or when they are dissatisfied with the customer service they’ve received.
If you think you are overpaying for car insurance or have just discovered a more attractive insurance package, you will need to speak with an insurance agent and fill out some paperwork to make the switch. Still, it’s important to consider the pros and cons of the change before you proceed with the cancellation and switchover. Here are some of the most important questions to ask before switching your auto insurance policy:
1. Will there be a fee for canceling your existing policy? Many auto insurance providers will impose a penalty or fee for canceling coverage before your insurance policy expires. These fees will be outlined in your insurance contract. In some cases, you will be responsible for not only paying a fee, but also paying for any earned premium on your plan. Make sure you understand the total cost associated with the cancellation before you make the switch.
2. Can they offer a competitive rate? If you share the fact that you are considering switching to a competitor auto insurance provider because you’ve been offered a better rate, or because you are dissatisfied with customer service, your current insurance provider may offer you a better deal in hopes of keeping your business. Ask about any discounts, special offers or unadvertised specials that you may be eligible for. Some auto insurance providers may be willing to review your account and offer you a discounted rate to avoid losing your business.
3. Will you be better off with less coverage? If you have a history of being claim-free and do not drive your vehicle often, you may be better off with less auto insurance coverage. In this case, it may make more sense to switch to a different type of insurance so that you are paying a lower premium and still getting the coverage you need. For example, you may consider asking your insurance agent what your options are for switching from comprehensive coverage to basic coverage with your current insurance provider.
Switching your auto insurance policy may seem like a good idea when you’ve found a lower rate or you aren’t happy with the type of customer service you’ve received. However, there are several things to consider before making the switch. Get in touch with an auto insurance agent to ask these important questions so that you are making the most informed decision.