• Tips for How to Switch Car Insurance Companies

    There can be a number of reasons why you may find it necessary to switch car insurance companies. Whether you want to pay a smaller premium or get better coverage, there are several ideas that can be put in place to help you ensure that the transition from one company to another is a smooth one.

    Tip #1

    The first step necessary when you switch car insurance companies is to compare the service and policies of each insurer beforehand. In addition to the premium amount, you must ensure that you will be better off with the level of coverage that an alternative company provides. Check the claims process and the status of any additional benefits, such as a courtesy car being included if your vehicle is off the road.

    Tip #2

    Before you cancel a car insurance policy, check whether doing so will incur a cancellation fee from your current insurer. Some insurance companies will require you to pay a specific sum before a policy can be cancelled, which can sometimes be equal to the remainder of the premium owed if it has been previously paid in installments. On occasions where the entire premium has been paid upfront, cancelling the policy could mean that you must surrender the whole amount, as a refund will not be offered.

    Tip #3

    If you intend to switch car insurance companies around the time that an existing policy comes to an end, you should check the relevant wording on your documents so you are aware of the correct date. Keep a note of this date when you are considering switching companies so you know when the new policy must start. Give yourself plenty of time to compare the services of other companies so you can find the right one to provide a replacement policy. Insurance companies will usually give you the option to choose the inception date for the policy, and this will help to ensure there is never a period when you are driving a vehicle uninsured. Avoid any overlap in coverage. This will not only be a waste of your insurance premium, but it can also prove complicated in the event of a claim.  

    Tip #4

    If you are paying premium installments directly from your bank account to an existing insurance company, you must remember to cancel them when you switch car insurance providers. Do not rely on car insurance companies to do this for you, as you may find that several additional payments may be taken before it is stopped, thus putting the stress on you to get the money returned. Check what method is required to enable you to switch companies. For example, a telephone call will be sufficient for some insurance companies, while others will require you to confirm in writing.    

    Tip #5

    When you switch car insurance companies, you will find that the new firm will do most of the necessary work for you in the majority of situations. Do not assume that they will cancel the existing policy on your behalf. When they are prepared to contact the existing insurance firm, request they provide confirmation that this particular task has been undertaken.