Some policyholders stay put for years while others change at least ever couple of years. It is fair to say that either way won’t make any difference when making claims since it is all about having the necessary vehicle insurance coverage at the time. Although it is a pretty straightforward process, people should pay close attention to details when switching so that they iron any problem out quickly and easily.
It is a lot different when it is your choice to make than when you are forced to look for alternatives due to bad driving record or being refused renewal. Here are a few points to come to mind;
- Make sure you are never out of coverage when you are making the move. 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 in initiating it when the old one hasn’t run out yet.
- Don’t change car insurance companies right in the middle of a claim. That could be awkward to say the least but can be problematic as well. Wait until it is finalized. Besides, you are unlikely to get any premium refund once you or third parties submit a claim. However, there isn’t usually any problem renewing the policy with another alternative if it expires in its natural course.
- Finish with the current carrier properly by giving a notice, paying any outstanding amount and cancelling automatic bank orders. Although most would get the hint and stop policies just not sending installments and expecting that they will get the hint isn’t really the right thing to do. Some 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 refunds due to you for the time you didn’t use. Don’t leave any money on the table because they would calculate it down to the last day and return any unused portion.
- Best time to switch automobile insurers is the renewal period. It is a clean break from the old and start with the new. The whole point of having 6-monthly intervals is that both parties can make adjustments or choose not to renew the contract. They wouldn’t be shy to double the premium after an bad accident claim and why should them. The same applies to motorists and they should always check for alternative quotes before agreeing to stay for another term. Still, you may not see any reason why you should stay until the end. That wouldn’t be a problem either, especially if the savings are much higher than any cancellation fee, which is usually small amount.
- Remember to keep records of no claim history along the way. Your new auto insurance company may not ask for a proof immediately. You should keep the letters and e-mails that confirm you did not make claims with them. Also, you should keep old 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 documents.