Most of us are beings of habit and loyalty and we are capable of sticking to one insurance company for many years. That is, when renewal time for your car insurance rolls around, it is very easy to just go ahead and pay the premium and stick with the same insurer year after year.
But that could be a costly mistake because if you were to shop around, you would literally save a lot more than what you are paying currently. So why not consider switching insurers?
If you find a rate that beats what you are currently paying and you decide to change carriers, you need to be careful so you will not wind up with a gap in your coverage. For a successful switch, follow the steps below;
1.Contact your current insurance company: Find out if you’re missing out on discounts with your current carrier. For example, you might qualify for savings if you have another policy with the company, such as your home insurance.
2.What will switching cost you?: If you do decide to switch, find out if there are any penalties for switching before the end of the coverage period. Because if there is a penalty, you need to do the math and see if it is worth it to switch now or wait.
3.Compare rates: To get the best deal you need to compare rates, gathering at least three quotes. In addition, you want to understand what is covered and how much protection you will have from a new policy.
4.Do some background research about the new company: Find out as much as you can about the company you intend to switch to. Are people happy with the way the company resolves complaints? Is the carrier likely to put blame on you should you be involved in an accident? Will your claim be paid and will it be paid on time?
Bottom line, do not ever sign a contract just because they offer cheaper rates. They may have lower rates but have a red tape-ridden claims service.
5.Make sure your old policy is canceled: When switching car insurance, it is important that you simply don’t stop paying premiums for your old policy. Be sure to call or write to notify the company that you are ending your policy and are going with another carrier. Also, make a follow up to make sure you get a written confirmation that you have canceled.
6.Flip the switch & Make a good first impression: With a new policy that is not even 90 days old, you most definitely don’t want to have a bad first impression by filing a claim. Drive safely!