How to Switch Car Insurance Providers Smoothly (Documents, Steps, Myths)
Thinking of Switching Car Insurance Providers? You're not alone. Many drivers do to find more competitive premiums, better services, or coverage that fits their needs differently. Although switching providers may seem daunting, it is actually quite easy if you prepare yourself beforehand.
This entire post will guide you through the steps you need to take, the record-keeping you will need to maintain, and the myths of switching insurance in order to help you make a seamless transition to a different car insurance provider.
We will cover everything you need to know from finding the best car insurance provider for your specific situation, to finally making the switch without any breaks of coverage. Let's begin.
Why You Should Switch Your Car Insurance Provider
There are many reasons a person would switch their insurance. Your rate may have gone up, or possibly you have a negative claims situation. Also, major life events such as moving, purchasing a new vehicle, or marriage may change your insurance requirements.
The best car insurance provider for you is the one that meets your unique situation. It is not just about who has the best price but also about getting the best value from your provider who will assist you when a claim arises. Regularly shopping around provides you confirmation that you have the best possible coverage, for the premium you are paying.
A Step-by-Step Guide to Switching Car Insurance Providers
You can refer to the steps below in order to transition at a smooth pace.
Step 1: Think and Compare Quotes
Your first action in the whole process is to get other quotes and find out what other options are available to you. Do not just settle to stay with the original quote you received.
Start to Gather Information: Obtain quotes from more than one source. Research larger national companies, local car insurance companies, and regional companies. Local insurance agents usually have a great deal of local expertise with your state's requirements, and fortuitously, most will focus on customer service. A local agent is invaluable.
Review Your Options: When you receive quotes, be cautious to consider like-for-like coverage. Pay attention to the limits of liability, deductibles, and considerations for optional coverages like collision, comprehensive, and rental reimbursement that all have deductible options. Just because one policy is cheaper does not guarantee you are covered for less.
Read the Reviews: Look up and read reviews on any new car insurance providers. Check to see what ratings they receive for customer service and claims experience as well as customer satisfaction. A provider can be a little better to work with when applying a claim, if it does happen.
Step 2: Have Your Required Documentation
When you find a couple reasonably targeted car insurance providers, have some information ready to get rates and finalize the new policy. If you can gather all the information before you start the process, it will allow you to turn over a response quickly.
Current Insurance Policy: An easy and useful piece of information to share is the declarations pages, the page that shows coverage limits, deductible amounts, and policy limits, when asking for quotes. It is your insurance policy that will allow you to compare your information in the new quotes.
Driver's Licenses: If you want to have multiple drivers on the new policy, you will need to have their driver's license number available.
Vehicle Information: You will need the make, model, year, and Vehicle Identification Number (VIN) for all vehicles for which you want to insure. If you are not sure about the VIN, you can usually find it on your current insurance card or on your vehicle registration or on the driver's side dash.
Driving History: Be prepared to provide information about any accidents, tickets, or claims, for all drivers on the policy, in the last three to five years.
Step 3: Select Your New Provider and Policy
When you have compared the various options, it is time to select the best car insurance provider for you.
Note, you will want to review your top choice one more time. Make sure to confirm the coverage details, the total premium, and the payment schedule. Before you finalize your policy, ask any last questions you may have about the specifics of the policy to the agent or representative. When you are feeling confident, you can purchase your new policy. Do ensure to choose a start date on your new policy that corresponds to the end date of your old policy.
Step 4: Cancel Your Old Insurance Policy
It is important, do not assume that your old policy will automatically cancel. After your new policy is official, contact your previous car insurance provider to cancel your old policy.
Call or Write: Most providers require you to call or send in writing a cancellation request for your old policy. Check with your previous car insurance provider about the particulars of their cancellation request.
Confirm the Cancellation: You will want to ask for written confirmation of your old policy cancellation and when it will cancel. This is your proof that you are no longer with them.
Ask About Refunds: If you paid your premium in advance, be sure to ask them about a refund for the unused premium. Check with the provider how and when it will arrive.
Important Tip: Don't cancel the old policy until it has gone live. Having as little as a one-day break in coverage can cause major issues in terms of legality and finances.
Taking the Myth Out of Switching Car Insurance
There are a lot of pitfalls that come with misinformation that discourage individuals from seeking a better deal. Let's discuss the myths:
Myth 1: It's too hard and takes too long to switch insurance.
Fact: It is much easier than you think. With the correct documents, you can get a number of quotes through the web or a simple call in less than an hour. A reputable car insurance provider will have a smooth process that gets you signed up very quickly. The savings and level of customer service are worth the minimal time investment.
Myth 2: I have to wait until my policy renewal to switch my car insurance.
Fact: You can switch providers at any time during the policy term. You are not locked into the policy you signed for the length of time specified. If you see a better deal midway through your policy, you can change the policy and your old insurer will send you back the unused premium you paid.
Myth 3: If I change insurance providers, it will hurt my credit.
Fact: There is no impact on your credit score when switching car insurance providers. Although insurers do use a credit-based insurance score to help determine rates (most states), the inquiry for the score is a "soft pull" and will not affect your credit rating. And changing insurers is not a negative credit flag and is not reported to credit bureaus.
Myth 4: My existing provider is going to give me the best rates based on loyalty.
Fact: Loyalty and/or wrapper rates do not always equal savings. While some carriers offer loyalty discounts, any company's base number may be substantially lower. The only way to know if you have the best deal is to shop around.
The Finished Experience Starts Here
Changing your car insurance provider is a great opportunity to take back your financial freedom and make sure you have the right protection while driving. Follow the suggestions given above to minimize the stress around the switch. Do your research, get your documents together, and don't be afraid to switch. Finding the best car insurance provider that fits your individual situation is going to put you on peace of mind and savings for the ensuing years.
