How to Change your Auto Insurance to Another Company?

Whether you have been with the auto insurance company for many years or only few days, you have the right to change your insurer at any time. There might be many reasons to switch your insurer. You are unhappy with your insurance company’s service or you learn other company offering same level of coverage at lower cost.

When you decide, therefore, to switch to another insurance company, you need to follow some steps to make switching your auto insurance policy easy.

Get new policy in place before canceling old policy
Before you submit notice of cancellation to your present insurance company, you need to make sure that you have another new policy for a new coverage. Once proper notice is given to the insurance company, every policyholder has the right to cancel policy at any time.

No need to wait till renewal date
As you have new policy in hand, there is no need to wait till renewal date to cancel your old policy. Your new policy will ensure that you are not leaving yourself without protection for even a single day. But it doesn’t mean to overlap coverage or have much auto insurance coverage at same time. This is waste of money.

Mid-term cancellation may charge penalty
Before you switch to another company, you need to ask your insurer, whether there is any penalty if you cancel in the middle of the policy term. This is because, there are many companies charging some penalties for mid-term cancellation. Decide if the better rate outweighs the fee (penalty) you have to pay.

Thus, before you cancel your old policy, make sure to inform your insurance company in writing that you are canceling your policy and don’t terminate your coverage until the new policy is in place.

Updated: December 9, 2015 — 7:39 am © 2008 - 2017 Frontier Theme