subject: How To Switch To A New Auto Policy [print this page] How To Switch To A New Auto Policy How To Switch To A New Auto Policy
There are many reasons why you may choose to change your auto insurance coverage to another company. Perhaps you've found another auto insurance company that offers the same amount of coverage, but at a cheaper price. You might have changed jobs and are eligible for a group discount through another insurer, or maybe you're unhappy with the service that your present company provides. Investigating your choices with the expansion of the internet and quote comparison sites has never been this easy! Within, we will explain to you how to change providers so you can obtain cheap auto insurance.
You need to regularly review your auto insurance coverage to make sure that you are receiving the best insurance value for your money. You may discover that it pays to shop around. In some localities, premiums for identical policies alter widely between various auto insurance companies. The reasons for this price variation can be very complicated, but they boil down to a company's claims experience with policyholders in a coverage group . For example, if, throughout a given year, massive numbers of individuals in a coverage group file claims, it is likely to raise their rates. When this occurs, other insurance might have better discounts and lower overall premiums. When you decide to switch your auto insurance to another company, you'll find that it's fairly easy to do so. Most often, if you want to cancel your auto insurance policy, you need to inform them in writing, make sure to be specific on the date you want the policy cancelled. In some states, the new auto insurance company must notify the previous insurance provider of the policy change. You may send back the actual printed policy as some auto insurance providers require this. The cancellation request form that auto insurance company sends needs to be signed and returned. Examine the form carefully and analyze all the information regarding the policy to make sure it is correct. If the form is not received within two weeks of sending the letter, call the agent or company immediately to check on the status of the cancellation. Don't just walk away from the old policy without formally canceling it. In all U.S. states there are laws that prevent the cancellation of an auto insurance policy without prior notice, therefore if you do not formally cancel your policy, your insurance company will cancel the policy due to lack of payment, and may report this discontinuity in coverage to your state government. This may have an adverse effect upon your credit rating and hinder you in obtaining another insurance policy.
Always have a new policy in place before canceling the old auto insurance coverage. This will avoid a lapse in your coverage! A large number of U.S. states have mandated auto insurance, as a consequence, you will frequently be required to present proof that you have obtained a new auto insurance policy before you existing insurance carrier will cancel your policy. Your new insurance provider will be able to make sure that your new policy will go into effect prior to the termination of the old one. It will help you to review several auto insurance companies.
The most convenient time to change policies is at renewal, since at this time, you will not be due a refund from your prior insurance company. In the majority of cases, you will receive a renewal notice from you existing carrier at least one month before it is due to be renewed. When switching to a new auto insurance company, you need to obtain new insurance coverage before the renewal date of your existing coverage. Though a company might say there is 10-30 days to get your payment in before a policy terminates, you do not have coverage until the carrier receives the payment. If the premium was not paid and you have an accident, you will be liable, since your coverage will not be in effect!
At a time of your choice, you can cancel any auto insurance policy as long as you give advance notice. There are several U.S. states in which a penalty is applied to those who cancel a policy before the time of renewal. Most of the time, no penalty is applied. At times, it will benefit you to change policies before the renewal date of your existing policy. As an illustration, if your existing policy goes from January 1st to December 31st and you had a ticket that will become three years old in March. In this case, switching to a new auto insurance carrier can get you a good driver discount. Your current carrier won't apply this discount until the policy renews on August 15th. This can save you a considerable amount of money right away!
Your insurance agent will normally be able to make this policy switch in a rather brief time frame, provided your provide him or her with your existing policy information! In order to make the policy switch the agent will need upfront payment, your driver's license, and a copy of the existing insurance policy.
