Moving insurance companies – will it be really tough?

In case you have chosen to switch auto insurers, you may well be pondering how to make that happen, and whenever there’ll be fees involved. Changing your car insurance policy is not hard once you know what you should do.

It can be much easier than you imagine!

Routinely check your car insurance plan to be sure that you’re getting the very best insurance value for your bucks. You’ll learn that it pays to research prices. Practically in most states, rates for the exact same levels of insurance coverage fluctuate widely among different insurers. The explanation for this price variation will involve many complex aspects.

One of the leading factors is usually a company’s claims history with customers in your coverage category (e.g. people of equivalent age, number of claims, kind of vehicle, etc.). As an example, when a numerous people in the coverage group files insurance claims within a given calendar year, your premiums will more than likely surge. When this occurs, far better savings and lower overall premiums could be offered by other companies.

Exactly why change car insurers?

There are actually quite a few good reasons to change auto insurers. You could be disappointed with the services your current company provides, or alternatively you could have basically found a different insurance carrier ready to give you identical level of coverage for significantly less cash. Today, performing a frequent auto insurance cost check-up and analyzing the options has never been simpler and easier. As soon as you come to a decision to swap your car insurance to a new company, you may find that it’s relatively easy to complete the task.

Make sure you get new auto insurance upfront!

Have always the new insurance policy set up ahead of cancelling your current car insurance. You never want to have a lapse in auto insurance even for a single day. Your new insurance company is able to time the start of your brand-new insurance policy to match with the termination of the old insurance coverage.

When you should move insurance policies

A good time to buy insurance coverage is approximately 3 or 4 weeks before your current policy is getting ready to renew. Based on the laws where you live, a renewal notice will probably be sent to you about 30 days ahead of your new insurance policy period commences. The notice will explain your coverage, special discounts, along with your premium total. By using that data, it is possible to shop on the net for similar insurance coverages to discover your alternatives.

There’s no need to hold off until renewal

Every typical car insurance plans include a provision offering you the legal right to end your insurance policy whenever you want, when suitable notice is given to your insurer. There’s no need to hold off until renewal time. Even so, termination before a plan has renewed is more efficient. Doing this, you won’t have to stress about recovering the unused part of your paid premium. In case you decide to terminate in the middle of a cycle, the insurer will prorate your most recent premium payment up to the termination date and give back the rest to you.

Would they impose a penalty?

Sadly, some auto insurers may possibly charge a particular “short rate” termination fee in case you cancel during a policy period, so be sure you ask prior to deciding to switch. Considering they do charge a fee, you will need to decide if the better rate outweighs the fee you’ll pay. Remember that many companies offer earned accident forgiveness, future renewal discounts, and other benefits that grow with or depend on the amount of time you maintain a policy with that car insurance company.

How to cancel your old auto insurance

Generally, all you need to do to cancel your auto insurance policy is to inform your insurance company in writing, specifying the particular date you want the policy cancelled and the reason for the cancellation. If you’ve sold a car, you may be asked to provide a bill of sale, but only if you’re asking the company to “backdate” the cancellation. If you are simply switching to a new company, there’s no need to prove this, unless you’re cancelling a policy mid-term.

Is it legal for my old company to ask for my new policy?

Most states’ insurance laws actually require the company to confirm that you have a new policy for your car before cancelling your old policy. The reason is that most insurance companies have to report policies that are cancelled to the state insurance department, so the state can keep track of uninsured drivers. This helps reduce the number of uninsured drivers. If they let you cancel your old policy without proof that you had a new policy, they would have to report you as uninsured.

You must confirm cancellation

Don’t just walk away from your old policy without formally cancelling it, because most policies are “continuous” – which means your policy will continue to be renewed every six or 12 months, unless you cancel it. If you fail to cancel, your auto insurance company will continue to bill you for insurance and will eventually cancel the policy for failure to pay. Then, you have bills to dispute and phone calls to make! It’s usually easier to cancel in writing when you’re ready to switch.

When you receive an official policy cancellation notice from your car insurance company stating the date and time when your coverage will stop, you’ll know your cancellation has been processed correctly.

Check if your company is offering you the best deal. Compare Tampa auto insurance quotes online and you can save up to $450 today!