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How to Switch Auto Insurance Companies

If you are not satisfied with the services you are getting from your auto insurance cover, or you can no longer meet up with the premiums; changing to another reliable one would be one of the wisest things to do. The fact that you start out with an auto insurance company doesn’t mean that you must continue with them for the rest of your life. There are loads of fantastic auto insurance packages designed to win people that are dissatisfied with their present insurance companies.

A lot of people find it difficult to switch from one auto insurance company to another simply because they don’t know how to go about it. From your auto insurance policy document, you might notice the option to cancel your policy if you are not satisfied, or if you are changing from one geographical location to another. All it requires is that you provide an appropriate notice before taking the action. It doesn’t take forever to switch, it might just take you one or two days to finally switch from one auto insurance company to another.

So if you are amongst those who have issues with your auto insurance company and want to switch, here are the step to step procedures to follow to successfully switch from one auto insurance company to another;

How to Switch Auto Insurance Companies in 5 Quick Steps

1. Pen down Your Complaints

Before you switch from one auto insurance company to another, you should be able to clearly state why you are dissatisfied with your present auto insurance company. Doing this would prepare you not to fall out on same issues with your new auto insurance company; it would also help you make informed decision. For example if one of the reasons why you want to switch is because of the rate at which your premium is being increased, writing down the amount and calculating the percentage increase per time with respect to the sum assured would enable you compare and contrast properly without being biased.

2. Talk to Experts

You cannot know it all when it comes to auto insurance policies, sometimes what you think is to your disadvantage might actually be to your advantage in the long run. If you are dissatisfied with your auto insurance company, the first step to take before shopping for another one is to talk to an expert. You would be amazed to know how much you might save by talking to an expert. For instance, your expert would be able to point out to you some hidden benefits of various insurance covers. You should also inform your auto insurance company of your intention to cancel your policy and the reasons why you want to do it. You never can tell they might work on their policies their so as to avoid losing clients that falls into same category as you do.

3. Study Your Options

What’s the use of jumping from one auto insurance company to another only to realize that you were better off with your previous auto insurance package? You should not switch solely because you are paying higher premiums, other factors like promptness in paying claims should also guide your choice. The wise thing to do before switching from one auto insurance company to another is to do your own investigation, carefully study their auto insurance policy documents and ask questions from their existing customers. Doing this will position you to make a better choice.

4. Follow Due Process

If you have made up your mind that you are over and done with your current auto insurance company; don’t just stop paying your premiums. The right thing to do is to follow the laid down process of cancelling a policy before finally cancelling the policy. When you follow the due process available and you cancel your auto insurance cover midway into the policy, you could get a refund of all your unused premiums with just little service charges deducted from it. Just make sure you know the right time to cancel an auto insurance policy so that you can be eligible to get a refund of your unused premiums. Experts always advice, that you buy a new auto insurance policy before cancelling your old one because of unforeseen circumstances. For instance, if you cancelled your auto insurance cover and you allowed a gap before buying a new cover, and it happened that you were involved in an accident during this period, you would have to pay from your pocket for any damages incurred. This sure could cost you more compared to when an insurance company handles it for you

5. Start on a Good Note

In as much as you have the right to cancel your auto insurance policy, insurance companies also has the right to cancel your insurance cover if they observe discrepancies that they aren’t satisfied with. For instance, if you make a claim few days just after the window period of your policy cover expires, it could most likely put you on the watch list of your auto insurance company and if this persists, your policy may be cancelled. No auto insurance company would want to cover a reckless driver, so do all it takes to stay out of troubles when you just signed in with a new auto insurance company.

Take note that if you regularly review your auto insurance cover, you would be able to know when you are getting less value for your money to warrant a switch. Most insurance companies increase their premiums based on certain indices and the feedback they get. So if you can’t afford the new premium, the best thing to do is to switch to another auto insurance company with moderate or even lower premiums.

As long as auto insurance companies keep springing up, there will always be competition in terms of price and services, hence the need to always switch from one to another. Before switching just make sure you go through all the steps discussed above so that you would be rest assured that you are making an informed decision that would benefit you.