How to Switch Car Insurance Companies

Switching Car Insurance Companies – Easier Than You Think

list of insurance companies

We are not representing that we carry all of these companies.

Shopping your car insurance on a regular basis can be a great way to always ensure you are getting the best rates possible.  Just because you are shopping rates and comparing coverages, it doesn’t mean you have to switch, it just means you are an active consumer and want to be sure you are always getting the best price and the best coverage.  We wanted to provide you with a few helpful tips to follow as you consider switching insurance companies.

Why Do Rates Change by Company?

Auto insurance rates vary state to state as well as company to company.  Insurance rates are determined based on many factors to include but not limited to your age, your driving history, your zip code, the model of car your drive and even whether or not you are married.  Each insurance company, in each state they are in, will give different values to each of these variables, all of which factor into the rates that are filed with each state’s Department of Insurance.  The cost of claims and other operational expenses vary from company to company and are a significant factor in setting premiums.  This is one main reason why rates will differ from company to company.

So, Why Switch Companies?

There can many reasons for considering a change in your insurance company, from level of service you receive to rate increases.  At the end of the day, most folks are shopping their insurance based on rate – we all want to save some money and auto insurance is a good place to start.  Regardless of why you are not happy with  your rate (recent accident/claim, new driver, another car, etc…), it is just a good idea as rates are always changing and you won’t know if you are getting the best rate unless you kick the tires a bit.

Do You Have to Wait Until Your Policy Renews to Switch?

The easy and quick answer is no.  Most auto insurance policies will state, in your policy, that you may cancel at anytime with no penalty.  Many, however, will ask for a specific notice of your desire to end your policy, usually within a certain number of days of your renewal.  There is an advantage to not switching until your policy renewals and that is that you don’t have to worry about getting a refund for the unearned premium.

What does unearned mean?  Basically, you pay for your insurance in advance.  So, if were to pay for your premium in full for a six month term but decide to cancel 4 months in, you will be do a refund for the 2 months of the policy term that you will not be using, or unearned premium.  This can sometimes take awhile to get a check from your insurance company.  If you wait until your policy is going renew, you let your full premium run and then make the effective date of your new policy the same date as the expiration of your old one.

Will You Be Charged a Fee?

watch for cancellation fees

Watch out for fees!

The truth is there are a few companies out there that may charge you a fee now if you switch mid=-term.  The best way to avoid this of being an issue is to ask if there is such a fee so that at least you are not surprised by it if it comes up.

Be Sure to Get a Formal Cancellation Confirmation

If, after shopping around, you decide to cancel your current policy and go with another company, we strongly suggest you request a notice of cancellation from your current company so that you have a record of it.  The last thing you want to do is start a new policy only to find out you are paying for 2 policies.

Cheap Insurance Tips believes that auto insurance should be affordable for everyone, regardless of your history. It is for this reason that we have brought together our valued insurance partners to help you find good coverage at affordable rates with a reputable insurance company. Start your FREE quote today!

Categories: Auto Insurance Shopping


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