Switching Car Insurance Companies in 10 Steps

You like it or not sometimes it becomes necessary to switch auto insurance companies to get the best value policy. This requires a little work but it can be highly beneficial in several ways. When it is done right you would not have problems in the future and maximize the overall benefits in terms of coverage and price. Let’s get started and see if this will result in a pain free move that will fully satisfy you.

Step 1: Why Do You Need to Change Automobile Insurers?

There could be tens of reasons why people would feel the need to search for alternatives. The most common one is the material improvement or worsening in circumstances. Buying a new automobile, moving to a new address, improved credit rating, adding a new driver (especially a young one) and having an accident are a few of the factors that will affect rates considerably.

When you have a shift in circumstances in any direction you may not be attractive proposition to the current carrier anymore or another one might be a better choice after all. This is assuming the current one was competitive at the time of choosing. The fact is that many motorists are not taking the time to find cheap car insurance. Those drivers can save a lot more by shopping around.

Step 2: Use This Opportunity to Improve Coverage

It is no secret that most of us don’t like changes or don’t want to deal with it. It is easier to just renew each time than getting a policy out and thinking about what you should and shouldn’t include. However, life moves on. Only few years ago you were perhaps someone who just got the first automobile and still at college with nothing to your name; no property, wife or child, not even a job.

Before you know, you have a family and a lifestyle to protect. In that case, the first area to look at is the liability coverage to make sure it is sufficient to avoid settling large damages out of pocket. It is no joke; you will be forced to sell your home and pay for them if you cause harm to other people and the policy falls short of paying all claims. Rest assured that you can get cheap liability vehicle insurance quotes online.

You may also have a better car and like to protect it more comprehensively. It could be that you could save a little as well by making adjustments. You may now have a more settled life and you are not driving miles every day to make a living. This is an opportunity to ask for low mileage discounts. If you increase coverage you get protected better. Nonetheless, if you don’t need it there is no point in paying for it either.

Circumstances may force you to adjust a few things. There are different set of cheap automobile insurance carriers for different types of drivers. For example, you may not need the one that offer special discounts for students when you are not a poor student anymore. It may be time to correct that and look for different savings.

Step 3: Getting Ready to Shop for Car Insurance Online

Knowing what you need is the key to effective shopping. Most people go to grocery store or fruit and vegetable market with a shopping list. This ensures that they don’t come back home with half the needed things left out and bought a few things they will never use.

Determining the level of coverage beforehand helps you in another way. This will make sure that you will ask exactly the same protection from every company you go to. This simplifies the process when it comes to comparing quotes.

Step 4: Hit Out and Get Several Auto Insurance Quotes

It is literally speaking; you don’t really need to move from your chair because you can get quotes online. Almost all of them have websites with quick proposal forms that give instant results at the end. We have it here as well. There are plenty comparison websites as well to help you out before you start talking to brokers or go direct. Also, most brokerage firms have presence on the Internet. You could fill their enquiry form and get the ball rolling. The more time you have until the renewal the better. Urgent need for a policy may cause costly mistakes. You mostly end up staying put when you will be served better somewhere else.

Step 5: Study Competing Quotes You Received So Far

You have now got several of them for the coverage you need. Have a look at them and see where you stand. Are you happy with the prices? Sometimes, the policy you want can cost more than you are willing to pay even with the cheapest quote.

Quite a few people make the mistake of slashing it for the sake of lower premiums at this point. The other option that may serve you better is increasing deductibles. Indeed this option can be used in combination with dropping some of the coverage as well.

The point is that it may be all right to take some of the risks back on yourself. So, try getting quotes with higher deductibles and see how much the premium will come down. This option is great for drivers who have clean claims history. It is a simple math. If you have not had an accident in the last five years the chances are that you will probably not have more than one claim in the next five years.

For example, you save $200 for increasing Collision deductibles from $500 to $1,000 and Comprehensive from $250 to $500. In five-year time span, you would save $1,000. This would cover 2 Collision or 4 Comprehensive claim deductibles if you ever need to pay. If you manage to have another five years without any trouble you save $1,000.

Again, switching vehicle insurance companies may be necessary as some of them offer much better rates with higher deductibles while it may not make any difference with few of them. It is not a hard decision once you know it makes sense.

Step 6: Do You Need to Get a Few More Quotations?

Based on your decision on 5 you now know if you have enough or you should get a few more. Many people don’t realize that they can make some adjustments to their requirements and go for the second round. Considering each quote would take you about 5 minutes it is not a big deal. It is your time after all especially if you are online.

Step 7: Consider Your Options Now

What you have done so far makes life much easier. You made sure that you got what you want from the policy. You completed searches on the same bases. And you know now that you can afford the premium for the level of coverage required. All you need is one good cheap auto insurance quote but hopefully, you have several to choose from.

First thing to do is to see if anything is sticking out. This could be good or bad. For example, you could see that one of the carriers offering a little more coverage automatically than what you asked for. This is not unusual in a highly competitive US market. Another one may be that you have a great price from one company but there is a condition attached to it. A common one is that they may restrict who can drive the vehicle to only people over the age of 21 or 25. If there are such conditions are they acceptable?

Step 8: Is It Necessary to Make the Switch?

It is possible that you are able to pick one quote and go with it without hesitation. If this happens, it is great. However, it may be trickier than that. Then, you can start eliminating several of them and see what is left. This is a perfectly good method of making a choice. All the while you were probably comparing them with the renewal offer. So, is there a better deal from another provider? Where the current one stands after checking the competition?

Step 9: Need More Info before Replacing an Auto Insurance Carrier?

People have varying preferences. For example, you may want to have the option of talking to someone 24/7. Then you would want to make sure they have phone help 24 hours a day. Obviously providers with this option will score better than online only ones.

How many of them you are comfortable with and is any of them offering too good to be true terms? It may be a perfectly legitimate quote and you would be very happy with the company in every aspect. But you need to do this due diligence before the final answer.

Step 10: Switch Automobile Insurance Companies Nicely

Set the new policy to start from the moment the old one expires. Give notices to the current one if you are not making the change at renewal. If this is the renewal time, make sure that you cancelled any automatic payment to avoid any charges. They would return the money if it happened accidentally, but you wouldn’t want the extra work to get it back? Make a clean move if you made your mind up.

Final Thoughts:

Perhaps, there is one last thing to do after all depending on where the existing one stands against competition. Many people would be weary of leaving current car insurers for the sake of couple of hundred dollars. This is a lot of money for most people but if you are not one of most people you can do one last thing.

You can give them one last chance to match the other quote you are happy to go with otherwise. You have done all the hard work and it is understandable that you want something out of it. It is great if they can match it. Otherwise, dropping them would be even more justified now.

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