Making an automobile insurance switch is simple and easy. It actually happens a lot. Many people become dissatisfied with existing policies or customer service and look for other insurance carriers. Some people get new jobs and qualify for group discounts with a new employer. And yet others may simply find a lower-priced insurance rate that offers the same protection and benefits as the old policy. Here are some tips in helping you make an auto insurance switch, if you desire.
Canceling Your Old Policy
Generally, the only thing you need to do to cancel your old policy is let your insurance agent know, in writing, the date you want your insurance policy canceled. In some states, the new insurance agent must let the old insurance agent know of the policy change. Typically, you will receive an insurance cancellation form that you need to sign and return. Before returning the form though, make sure everything is correct as far as the actual cancellation goes. Make a telephone call to the old insurance agent a few days after sending the cancellation notice. This allows you to confirm that the old insurance policy has been officially terminated. Don’t just walk away without making sure the policy is formally canceled. Some insurance agencies will think you are continuing your insurance coverage with them. Make sure the policy is canceled.Make Sure to Get a New Policy First
Don’t allow yourself not to have some kind of automobile insurance. Before the old policy expires, make sure you have a new policy in place. You don’t want to have a gap in your insurance coverage. Most states require drivers living within their borders to carry some kind of auto insurance. So, many insurance agencies, before canceling your policy, will make sure you have another policy already arranged with another carrier. The new insurance policy usually picks up the very second the old policy is canceled.Best Time to Switch Policies
The opportune time to switch policies is just before the expiration and renewal of the old policy. This allows you to avoid any printing or start-up expenses. You also avoid the inconvenience of figuring out how much of a refund you get from your already paid premium. Another thing you want to be aware of is switching just after you have renewed a premium. Usually, insurance companies will give a month grace period after an auto insurance premium has been renewed to switch without incurring a penalty. If you don’t cancel within the month grace period, you can still cancel your policy anytime. That means you don’t have to wait until policy renewal to cancel your insurance. You can cancel at anytime during the old policy. Just remember, you might have some kind of cancellation penalty if you cancel during the middle of your old policy. The penalty is usually deducted to pay the administrative costs of renewing the policy.How Long Does it Take to Switch Policies?
Automobile insurance policies can be switched in as little as one day. The only thing you need to provide is the cancellation date of your, your former agent’s name, and the name of the old insurer. It is also helpful to show the old policy to the new insurance agent so he or she can make sure the new insurance coverage is the same with the newly purchased policy.John Ivie