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Switching Car Insurance? Keep These Tips In Mind

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Brittany Wolfe
Switching Car Insurance? Keep These Tips In Mind

Sticking with the same car insurance policy while convenient is not advisable. You might have gotten the old policy when you were young and needed just enough coverage to meet local law. You might be past overdue getting more affordable car insurance in Palm City better suited for your needs.

Common reasons for switching policies may include relocating to a new state, adding new drivers, high premiums, etc. In most cases, canceling the old policy and buying a new one is hassle-free. That is, as long as you keep the following points in mind:

Research Insurers

Look for reliable, financially stable and customer-friendly Palm City insurance companies. You can refer to their online reviews and ratings.

Get quotes from at least three insurance companies. Compare their prices, coverage, T&C, etc. Make sure that the new policy matches your current requirements. Get everything in writing before agreeing to any policy.

Contact Current Insurer

It doesn’t hurt to let your current insurer know that you plan on canceling them. In some cases, you might be considering switching due to prices but are satisfied with the service offered. Your current insurer might be willing to offer better rates and coverage. Even if you’ve made up your mind, you might want to call them for a policy review. Or to find out the cancelation process.

Check Cancellation Policy

Many firms allow customers to cancel their policy any time for free. Some might charge cancelation fees if you end it mid-term. In the latter case, you might want to wait until the term ends and cancel with notice if required.

You might also be eligible for some refunds based on the policy terms. For example, if you cancel a six-month policy in two months, then you might get a refund worth four months. Unused premiums might also add to the amount.

Initiate Cancelation

Not paying your premiums doesn’t automatically cancel the car insurance policy. The agency might continue to bill you and report you if you fail to pay. This ruins your credit score and causes more problems.

You need to let your current insurer know that you are canceling. Many companies allow you to do this through online cancelation forms. In some cases, you need to submit an email requesting it.

Avoid Lapse In Coverage

A gap between the old policy and a new one can prove costly. Most states require drivers to carry a car insurance policy. If you get into a car accident during this gap, you may be in for huge fines and repair bills. You might have to rely on public transport or taxis for traveling. The new insurer may charge more due to the insurance gap.

That's why it’s recommended that your old policy and a new one shouldn’t have a gap. The new policy should begin on the same day that the old one ends.

Keep Details In Handy

You need documents and details for the new policy just like the first time. Some info and docs you may need include:

  • Names of the drivers
  • Birth dates
  • Social security numbers
  • Driver’s license numbers
  • Vehicle information numbers of all vehicles
  • Declaration page or dec page from the current insurer.

Contact your new provider to know what documents you need.

Ask About Discounts

You might be eligible for common car insurance discounts like:

 

  • Good Driver Discount: If you’ve gone without having accidents or tickets for three to five years.
  • Low Mileage Discount: If you don’t drive often.
  • Affiliation Discounts: If you’re part of some group, such as a college alumni association, or based on your occupation, like the military.

 

Not all agencies offer these discounts but they’re common enough. So, you might want to ask about available discounts, small or big.

Switch Cards

Swap your old insurance ID card with the new one to avoid hassle on the road. Some states allow you to carry a digital copy but it doesn’t hurt to keep a physical copy.

Let Your Lender Know About The Switch

If you have a loan on your car, then you need to let your lender know about the switch. Contact them and request your insurer to send a copy to them.

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Brittany Wolfe
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