Points to Watch Out when Changing Auto Insurance Companies

Question: Are there points to mind when you are changing car insurance companies. Would it create a problem if I changed my vehicle insurance provider several times in the last 5 years? I have a good driving record and it has always been my choice. I have not been refused by any company either to offer quotes or renewal.

Answer: Here are a few things I can think of;

1. Make sure you are never out of coverage when you are making the switch. You can set the new policy start just as the old one finish. This can be arranged days in advance if you want. There is no point starting your new policy when you still have time with your old one.

2. I wouldn’t switch companies right in the middle of a claim. That could be awkward to say the least but can be problematic as well. Wait until the claim is finalized. However, there may not be a problem to renew the policy with another company if it expires in its natural course.

3. I would finish with the current insurer properly when I am moving to a new firm. I feel it is not a good way of doing things if I just stop paying my installments and expect that the company will get the hint. Some companies are actually so nice to provide coverage for as much as thirty days after you stop paying the premium. It is not fair on them. Besides, there may be some premiums due to you for the time you didn’t use.

4. Best time to switch insurers is the renewal period. It is a clean break from the old and start with the new.

5. Remember to keep records of your no claim history along the way. Your new auto insurance company may not ask for a proof of no claim records immediately. You should keep the letters and e-mails sent to you from previous insurers that confirm you did not make claims with them. Also, you should keep old insurance records up to five years if you ever have to prove that you had continues coverage all along. Just in case, it is a good idea to keep old records.

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