How to Switch Car Insurance Companies the Easy Way
Unsatisfied with your current car insurance company? Are you dreading switching car insurance companies? Switching to another carrier doesn’t have to be a big ordeal. There are a few things you can do to make the process smoother.
Ending your relationship with your car insurance company is not unlike breaking up with a girlfriend/boyfriend. If you have an insurance agent, things can be even more uncomfortable when you kick them to the curb.
You are in charge
The thing to remember when switching car insurance companies is that YOU are in control, not the company. An insurance policy is a contract that can be easily ended by the consumer, but not so easily ended by the company.
The best time to move your car insurance coverage is at the renewal of your policy. You may have a 3-month, 6-month or 12-month policy term, and you can find out when your current policy expires by looking at your policy declarations page or on your current proof of insurance documentation in your vehicle.
Plan ahead, but not too far!
About a month before your current policy renews, start shopping around for another carrier. You don’t want to shop around too early, as rates may change between the date you quote your new coverage and the date of your renewal. Online car insurance quotes will generally prohibit you from quoting too far in advance by limiting the effective date on your quote.
Once you have compared multiple quote and have decided to switch car insurance companies, you have a choice. You can contact your current carrier and inform them of you decision to cancel your current policy at the expiration date, or you can simply allow the policy to expire. If you allow the policy to expire without notifying your current carrier, you will receive payment due notices and policy cancellation notices from the company as required by law. It’s definitely a cleaner transaction if you contact your current carrier and end the relationship at the expiration of your policy.
Firing your insurance agent
If you have an agent, it can be difficult to tell them you are switching carriers. You are effectively “firing” your agent, and some people are uncomfortable with this type of confrontation. To avoid this situation, you can simply write your agent a letter notifying them of your intent to cancel your current policy at the expiration date. This way the agent can prepare the paperwork to cancel the policy and they will not contact you for non-payment of premium.
Once you have contacted your current company about your intent to cancel your policy, you can move on with your new company. It’s important to note that you DO NOT want any lapse in coverage between your old and new policies. Your new policy must go into effect at exactly the same time as your old policy expires. This prevents any lapse and will ensure you are not left uninsured for any period of time.
Compare rates easily
Switching car insurance companies doesn’t have to be difficult or traumatic, and you could save a substantial amount of money by switching. If you haven’t shopped your car insurance rates around yet, get started now simply by entering your zip code in the form below and getting multiple quotes from top companies in your area!
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- How do I find AFFORDABLE car insurance?
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Tags: find new insurance agent, switch car insurance
That part about firing your agent is dead on. That’s why I buy online now, so I don’t have to deal with an agent. They always made me feel like their kids were going to starve if I took my business elsewhere.
I am an insurance agent and no, our kids will probably not starve, but we see people go with online companies and other outfits not in the community. But whose door do they knock on wanting business contributions for all of the different educational fundraisers, their children’s ballteams, etc. We have had to greatly curtail contributions to community events. One of these days, I am going to say call the “Geico” for your school’s fundraiser. But I am polite and do not.
I know exactly what you mean. When I was in the agency there was an endless stream of people wanting donations for this and that. It was a small town insurance agency where we knew everyone, but even then it was sometime difficult to keep business local.
I always got a good sense of satisfaction when people would bring in a Progressive quote they did online, then I would quote the same coverage through Progressive’s independent agent channel. The rates were usually lower going through the agency rather than buying online. So it just goes to show you that buying online does not mean you’re going to get a better rate. Insurance agents serve a purpose and most do their job well.
It’s a big misconception that buying insurance online saves money because consumers believe they’re “cutting out the middle man”. But in reality, buying insurance online does not guarantee a lower rate. It just gives consumers another avenue to compare rates.
And we both have seen people who come into the agency with horribly inadequate coverages because they bought online and did not understand the importance of having adequate liability coverage. I really hate Progressive’s new “name your price” program because you know it’s causing people to purchase insufficient coverage just to save a few bucks.
State mandated minimum liability limits are a joke. To be driving a 5,000 pound vehicle an only carrying 10/20 or 15/30 liability limits is a disaster waiting to happen. If people could see some of the claims and resulting legal bills that I’ve seen, they wouldn’t be driving with less than 250/500 or 500 CSL and an adequate umbrella.
Sorry about the long reply, but I’m an agent advocate. I’m not sure where you agency is located, but see if you’re listed on our new find an insurance agent website. If not, submit your listing so consumers looking for insurance in your area have another avenue to find you.