A time comes in nearly everyone's insured life where switching car insurance carriers is necessary. If you haven't switched in awhile, you may be confused and unsure where to start and how to complete the process. It does require some time, but buying car insurance doesn't have to be difficult. If you currently have car insurance for six continuous months, it should be relatively painless to buy a new policy.
It is important to have access to your declarations page. If you do not have a current copy call your current agent or insurance carrier to get a copy. It will help you know what coverage you currently have on your car insurance policy. It is important to compare apples to apples when shopping for insurance. You can always make changes later, but when comparing price also always compare coverage.
The internet is a great place to do some research for different agencies in your area. Facebook can be a good start when looking for local agencies or you can get quotes online through an individual agency website or through a direct insurance carrier. If the internet is not your thing, a local phone book or references from friends and family are a great place to start. The important thing is to get multiple quotes to help determine if you're getting the best rate possible.
A common mishap of switching insurance is forgetting to stop your EFT, electronic funds transfer, from your previous carrier. If your intentions are to switch by the time your next payment is due, it's a good idea to notify your current carrier as soon as possible to stop your EFT, even if you haven't decided who is going to be your new carrier yet. Depending on the carrier, sometimes it can take up to five days to put a stop to the automatic withdraw. If the payment is withdrawn and you are cancelling the policy, it can easily take up to two weeks to get your money refunded.
It is always a good idea to request cancellation of your old insurance policy. It is not only good manners, but some carriers may automatically give you a grace period of coverage that you will be responsible to pay for if notification is not given. Ask your new carrier if they can handle the cancellation for you. Usually, it just takes a signed cancellation form and they can handle the rest. Leaving an insurance company with a good standing is always in your best interest. This way, returning is an option if things don't go as planned with your new carrier.
5. Start Your New Policy
All that is left to do is activate your new policy. Make sure to verify all the information on your new quote so it is as accurate as possible. Know all the differences between the new policy and the old so you are not surprised in the future. Most importantly, start your new policy before cancelling your old. A lapse in car insurance can wreck your efforts to save money, not to mention put you at risk for severe consequences if an accident occurs while uninsured.
If you have a loan on any of your cars, don't forget to notify the lender of your switch. Lenders always want to make sure their collateral is protected. If they do not have updated insurance information on file, they can take out their own insurance policy at your expense. Forced placed insurance is always extremely expensive and only covers physical damage, leaving you driving illegally without liability.
