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 deal 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 gains.

Step 1: Why Do You Need to Replace Car Insurance Companies?

There could be tens of reasons why people would feel the need to change auto insurers. One of the most common reasons is the change in your circumstances. Buying a new automobile, moving to a new address, changes in your credit rating, adding a new driver (especially a young one) and having an accident are a few of the factors that will affect your rates considerably.

When you have a change in your circumstances you may not be attractive proposition to your current carrier anymore or another firm might be a better choice after all. This is assuming you were with a competitive insurer before the changes. The fact is that many motorists are not taking the time to find cheap auto insurance. Those drivers can save a lot more by shopping around.

Step 2: Use This Opportunity to Improve Your Coverage

It is no secret that most of us don’t like switching car insurance companies or dealing with it. It is easier to just renew each time than getting your policy out and thinking about what you should and shouldn’t insure. However, life changes fast. Only few years ago you might be someone who has 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. First area to look at is the liability coverage in that case. Make sure you have sufficient coverage to avoid paying large damages out of pocket. It is no joke; you will be forced to sell your home and pay for damages if you caused injuries and damages to other people and your liability policy fall short of paying all claims. You can get cheap liability auto insurance quotes online.

You may also have a better car and like to insure 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 claim for low mileage discounts. If you increase coverage you get protected better. Nonetheless, if you don’t need it there is no point paying for it either.

When your circumstances change switching vehicle insurance providers may be necessary too. There are different set of cheap auto insurance carriers for different types of drivers. For example, you may not need a carrier that offer special discounts for students when you are not a poor student anymore.

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 shop or fruit and vegetable market with a shopping list. This ensures that they don’t come back home with half the things they need are missing 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 coverage 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 to get several quotes. You can get quotes online. Almost all car insurers offer online quotes for convenience. There are plenty comparison websites as well to help you out before you start getting direct quotes. Also, most brokerage firms are available online. You could fill their enquiry form and get the ball rolling. The more time you have until your renewal the better. Urgency in the need for coverage may cause costly mistakes. You end up replacing companies when you shouldn’t or don’t switch when you should.

Step 5: Study Competing Quotes You Received So Far

You have now got several quotes for the coverage you need. Have a look at them and see where you stand. Are you happy with the prices and coverage on offer? Sometimes, the coverage you require 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 cheaper premiums at this point. The other option may serve you better which 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 alright to take some of the risks back on yourself. So, try getting quotes with higher deductibles and see how much the premium quotations 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 deductibles 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 claims you save $1,000.

Again, swapping 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.

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

Based on your decision on step 5 you now know if you have enough quotes 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 of quotes. Considering each quote would take you about 5 minutes online it is not a big deal. It is your time after all especially if you are getting quotes online.

Step 7: Consider Your Options Now

What you have done so far makes life much easier when it comes to comparing quotes. You made sure that you got what you want from your policy. You got the quotes 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 quote but hopefully, you have several insurers to choose from.

First thing to do is to see if anything 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 insurance market. Another one may be that you have a great quote from one company but there is a condition attached to it. A common one is that they may restrict who can drive the insured vehicle to only drivers over the age of 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 the quotes and see what is left. This is a perfectly good method of making a choice. All the while you were probably comparing quotations with your renewal quote. So, is there a better deal from another provider? Where your current insurer stands after getting the quotations from rival firms?

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 your insurer 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 the insurers you got quotes you feel comfortable with? Do any of the quotes appear to be too good to be true? It may be a perfectly legitimate quote and you would be very happy with the company in every aspect. But you need to do your due diligence before your final answer.

Step 10: Switch Automobile Insurance Companies Nicely

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

Final Thoughts:

Perhaps, there is one last thing to do after all depending on where your current insurer stands against competition. Many people would be weary of leaving their current insurer 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 your current insurer 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. If your current insurer can match the quote, it is great. Otherwise, exchanging providers would be even more justified now.

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