You might find it easier than you realize!
You may want to transfer your auto insurance coverage to another company for many reasons. Maybe you have a new job and qualify for a group rate through another insurer. Perhaps your current company is not providing the best service. Maybe you have found another company that is willing to provide the same coverage at a fraction of the cost. Many insurance companies offer 24-hour rates information via their websites or toll-free numbers. This makes it easier than ever to compare your options. Your state’s Department of Insurance is another valuable source of information.
Why change to an insurance carrier?
You should review your auto insurance coverage regularly to ensure that you are getting the best value for your money. It pays to shop around. Premiums for the same policy can vary between companies in different states. These price differences can be complicated but are due to the company’s claims experience (e.g., with policyholders in your group). The price difference can be explained by similar characteristics such as age, number and type of vehicles. Your rates may rise if you have a lot of claims filed within a year. Although some states have strict regulations regarding the cost of coverage, you may find lower rates and lower premiums at other companies when this happens. It’s easy to switch to another auto insurance company if you want.
How to cancel an existing policy
In general, you can cancel an auto policy by notifying your insurer in writing. In certain states, the new agent must inform your old agent about any policy changes. Some companies will require you to send the original printed policy back. You will receive a cancellation request form from your insurance company that you must sign and return. You should carefully read the form to ensure that your policy information is correct. If you don’t receive the form within two weeks from the date that your letter was sent, contact your agent or company immediately to confirm the cancellation status. It is important to cancel your old policy before you walk away. If you do not, your insurance company may assume you wish to continue your coverage. In this case, it might cancel your policy for inability to pay premiums. This could affect your credit rating and make it difficult to obtain a new policy.
You should always get a new insurance policy.
Make sure you have a current policy before you cancel your existing auto insurance. Even if you have one-day gaps in your protection, it is not a good idea to do so. This is unlikely, however. Many states require that all drivers within their borders have at least basic auto insurance. Insurance companies will now ask policyholders for proof of new coverage in order to cancel active policies. Your old carrier may require you to present copies of your new insurance identification card and the Declarations Page for your new policy. The new company will be in a position to coordinate the onset of your policy with the cancellation of your previous coverage.
When is it time to change policies
Switching auto insurance providers is easiest just before the expiration of your existing policy. This will save you money on printing and startup expenses that your company may incur as part of your policy renewal. This will also save you the hassle of finding out how much of your unutilized premium should be returned.
You will receive a renewal notice approximately one month prior to the beginning of a new policy term, depending on state regulations. You will receive a notice detailing your coverage and discounts as well as the amount of premium that you owe. If you wish to switch policies, it is necessary to get a new insurance policy within the expiration date of your current policy. However, most states allow you to switch within a month. You may be charged a cancellation fee if you miss the deadline.
You don’t have to wait for renewal
Standard auto insurance policies include a clause that allows you to cancel your policy at anytime, provided that proper notice has been given to the insurance company. You don’t need to wait for renewal. You can cancel your policy at any time during a payment cycle, but not after it has been renewed. This way, you don’t have to pay for the premium that hasn’t been used. However, if you decide to cancel within the middle of a period, the company may prorate your most recent premium payment until the cancellation date and then return any remaining amount to you. To cover the administrative costs of renewing your policy, however, you will be charged a cancellation penalty (short rate)
What is the average time it takes to switch?
Your new agent or insurer can complete the change within one day if you have switched companies. The cancellation date, the name of your former agent, and the name the insurer are all required. You can also show your new agent a page of the policy specifications to ensure that the coverage is matched.