Knowing when and how to switch insurance companies may be a smart move. If you do your research, you may find that it can lead to better rates and lower fees. Besides looking for savings in your premium, you may want to consider switching insurance companies when you experience certain life events, such as retiring from your job, renovating your home, getting married or kids leaving for college.
All of these are factors which can impact your insurance. Whether you have experienced a life event or are just looking to save money, it makes sense to review your insurance coverage and costs periodically. What are the steps you should take before switching insurance companies?
First steps to changing insurance providers
Changing insurance providers shouldn’t be done impulsively. It requires careful research and consideration. You can start by calling around for rates, but be sure you understand whether the rate you are being quoted is for comparable coverage. Comparing coverage, limits, and deductibles is crucial in learning how to switch insurance companies. You can’t just look at the price of the policy.
Besides cost, take the time to research the reputation and dependability of insurance providers. In today’s digital age, it’s easy to find a variety of customer experiences online for any company. You may also want to consider convenience, such as whether you can refer to your policy online or whether there is a mobile app available.
Is it bad to switch insurance companies?
It’s not bad at all to switch insurance companies! You need to find the most competitive rate for yourself, after all. You should see your rates plateau, or even lower over time as you improve and maintain a good driving record, but that’s true of every company in the industry, all other things being equal.
Find out about all the discounts you might qualify for, as well as your payment options. Make sure there are no termination fees for changing your provider in the middle of a policy term.
Can you switch insurance companies any time?
Technically you can do this any time, but it’s best to wait for your policy renewal to avoid termination fees. If there is a penalty for terminating early from your current provider, you may want to wait until the current policy ends before making the switch. This is one of the biggest pitfalls that people face when they skip their due diligence figuring out how to switch insurance companies.
Staying in your policy until the next renewal isn’t always a bad thing, either. You can use the renewal cycle of the insurance industry to lock yourself into the rates you want until you’re ready to move to a new company. That’s pretty useful if you get into a fender bender or some other kind of minor incident, since your rates won’t change until the renewal occurs.
That’s when you can compare your rates for the next cycle against what other companies are offering.
Making the switch to a new insurance company
Once you’ve found a new insurance provider that better meets your needs, put the new policy in place before canceling the old one. This is a highly overlooked part of learning how to switch insurance companies, as it ensures that there are no gaps in your coverage. All it takes is someone else’s mistake on that one day of driving to give you an expensive repair. Don’t risk it!
Wait until you have documentation that your new policy is in place before notifying your existing provider. Once you are sure you are covered by the new company, contact the old insurance company to let them know you have switched, and make sure you receive confirmation that the policy has been terminated.
Can I switch home insurance companies too?
Absolutely, and doing so could save you quite a bit of money if you bundle your home and auto policies together. If you have changed homeowner’s insurance policies, remember to let your lender or mortgage company know. Send a copy of the new declarations page along with a copy of the cancellation of the old policy. If you have switched car insurance, in most cases, the insurance provider is required to report the new coverage to the Ministry of Transportation.
It is not difficult to switch insurance companies if you decide it is the most beneficial option for you. Do your research, and make the switch. Contact aha insurance today for more information.
If you’re in the market to upgrade your insurance coverage and experience, you’re always welcome to check out our prices for your vehicle online or call us and we’ll be glad to help you experience our vision of the future of insurance.