Most companies make it simple to change your current car insurance policy because your coverage needs have changed or to switch insurance companies to save money. Here’s what you should know before changing your auto insurance policy.
Is It Possible To Change My Auto Insurance Policy At Any Time?
Yes, in most cases, you can change your auto insurance policy whenever you want, rather than waiting until the policy’s renewal period. To make changes to an existing policy, such as increasing your current coverage limits or adding a teen driver, simply contact your insurer’s customer service department or your local agent. Most policy changes will take effect immediately, though you will be required to pay any resulting increase in your premium up front.
You can also change car insurance providers at any time. Many insurers will cancel your existing policy for free, but some will charge a fee.
Check with your current insurance provider to see if you are affected by any such changes. If saving money is your motivation, you may be able to do so simply by adjusting your current policy, such as raising your deductible or lowering your coverage limit.
Is it possible to change my insurance if I have an open claim?
You can change your insurance policy even if you are in the middle of an insurance claim. Your open claim, however, must be handled by your current insurer. As a result, you must continue to work with your previous auto insurance provider to resolve your claim. Remember, if you choose to go with another provider while an open claim is open, make sure you’re up to date on all payments and following the rules.
When Should I Replace My Car Insurance?
Your car insurance requirements may change as the seasons change. That is why it is critical to review your insurance policy on a regular basis to ensure that it still meets your coverage needs. Reasons to change your car insurance include: fine-tuning your current policy or shopping for a different provider.
- You’re tying the knot. If you and your partner both own a car, it may be less expensive to insure both vehicles under the same policy rather than separately. Bundling your car and home insurance policies may result in additional savings.
- Your vehicle is getting old. Carrying full insurance on an older vehicle may not make financial sense, especially if the vehicle’s value is low.
- You’re on the move. Whether you’re moving across town or across the country, your address plays a significant role in determining your insurance rates. Related factors, such as whether you have a garage or must park on the street, can also have an impact on your insurance rates.
- Your youngster has obtained their driver’s licence. It’s no secret that teen drivers pay higher insurance premiums than older drivers. However, if your teen has begun driving, it is likely that adding him or her to your existing car insurance policy will be less expensive than insuring them separately. Many insurers provide discounts on teen car insurance if they maintain good grades or leave their car at home while attending college.
- You’re going to retire. On average, senior drivers have some of the lowest car insurance rates. If you no longer drive to work every day, you may be able to save money with a low-mileage insurance policy.
- You want to reduce your insurance premium. Switching insurance companies may allow you to save money. The Insurance Information Institute recommends comparing quotes from at least three insurance companies.
- You are dissatisfied with your current insurer. People switch car insurance for a variety of reasons, including cost. Other factors include customer service and claims handling.
How Do I Change Car Insurance Providers?
When you decide to switch insurers, check your current policy to see if there is a fee for cancelling before the renewal period. You will avoid any unexpected charges this way. A few simple steps can help to ease the transition between insurance companies.
- Collect all relevant documents. This includes information about your current policy, your driver’s licence, and the vehicle identification number (VIN) of all vehicles you want to insure.
- Look around. Before switching to a new auto insurance company, you should compare policies. While price is important, make sure you understand your policy’s coverage details (deductibles, types of coverage, and coverage limits) so you can make an informed decision.
- Choose and enrol in a new insurance policy. It’s time to enrol in your new policy after you’ve found suitable coverage and are satisfied with the rate. Before you cancel your original policy, make sure the new policy is active. Failure to do so may result in a lapse in coverage, which may affect your rate. Make a copy of your new insurance card as well. Some companies allow you to access your card immediately via their mobile app, making it simple to provide proof of insurance.
- Inform your lender. You must notify the lender or renter if you have financed or rented your current vehicle.
- Cancel your existing insurance policy. You can cancel your current policy after verifying that it is active. Depending on when you cancel, you may be entitled to a refund for unused coverage.
Is There a Penalty for Changing Car Insurance Companies?
Although many insurance companies allow you to cancel at any time, some may charge a cancellation fee if you leave mid-term. As a result, you should contact your current insurance provider to review the terms and conditions of your policy in order to avoid unexpected charges.
When Should I Renew My Existing Policy?
It is critical to have a new policy in place before cancelling the old one in order to avoid a coverage lapse. Because auto insurance is required in almost every state, not having coverage is not tolerated. A lapse in coverage can result in rate increases, licence suspension, fines, or repossession of your vehicle. If you are involved in an accident without insurance, you will be responsible for any expenses incurred as a result of the damages or injuries for which you are held liable.
Do I Get A Refund If I Change Car Insurance Companies?
It is possible to receive a deducted refund depending on when you cancel your current policy. For example, if you pay your annual premium in advance and decide to switch four months later, you’ll get a deducted refund for the coverage you didn’t use.
Will Changing Car Insurance Have an Impact on My Credit Score?
Changing car insurance companies will have no effect on your credit score. Because insurance companies do not report your payment history to credit bureaus, policy activity will not appear on your credit report. However, your credit score can influence the cost of insurance. When calculating your rate, most insurance providers use your credit-based insurance score, which takes into account your credit history.