Thousands of people shop for auto insurance every day. Perhaps you are currently deciding whether to stick with your current policy or switch carriers. There are a lot of variables to consider.
Here is a guide to help you through the process.
If your life has changed significantly over the last year, it may benefit you to switch auto insurance carriers. Perhaps you can secure a cheaper rate or find a policy that aligns with your current needs.
Common Reasons for Switching Coverage
Changes to your driving profile have an impact on the amount that you pay for auto insurance. In some cases, your auto insurance premiums may rise. Your auto insurance will likely change if you’re moving, purchasing a new car, or your credit score rose. Your auto insurance rate will also change if you’ve filed claims within the past two years. Keep in mind, though, that every carrier sets its own prices. Shopping around could help you continue to find coverage that aligns with your budget. In most cases, it’s recommended that you avoid automatically renewing your policy.
Key Steps in The Process of Switching Carriers
It’s recommended that you have a clear idea of what you want your new policy to look like. Having a clear idea about the type of coverage you want to add or switch can help you find the best policy for your situation. Shopping around is recommended. This allows you to see which policies may contain different types of coverage. If you decide to switch auto insurance policies, let your current carrier know. If you inform your carrier that you’re switching to a more affordable policy, they could help you find a cheaper quote. This is also a good time to ask about potential cancellation fees or any reimbursement if you have prepaid premiums.
Avoid canceling your current policy before your new policy kicks in. Canceling your policy could leave you with a lapse in coverage and cause your auto insurance rates to rise in the future. If you are financing your vehicle, try to notify your lender as soon as possible about the switch in the coverage.
Possible Risks of Switching Coverage
Generally, there aren’t many risks associated with switching carriers as long as you follow the guidelines. It’s recommended that you assess your financial situation before making huge changes. Perhaps switching companies won’t benefit you financially. You may be obligated to pay a large cancellation fee. There’s also a chance you could miss out on a customer loyalty discount.
Time Frame for Switching Carriers
If you are not happy with your current auto insurance policy, you can switch to another carrier at any time. If you have paid your premiums in full before switching carriers, your previous insurer will refund the unused premiums minus any fees. If you have an ongoing claim, it’s recommended that you wait until the process is completed before switching carriers. Also, if you switch carriers immediately after an accident, your rates will rise. Perhaps it’s best to wait until the end of your current policy before switching carriers.
Consult with Young Insurance
There are multiple factors to consider when deciding to switch auto insurance carriers. Shopping around and assessing different coverage options can help you find the best deal. If you have more questions regarding your auto insurance, contact us today. The agents here at Young Insurance will assist you in creating a customized auto insurance plan for you.