Whether you're moving to a new location, buying a new car, selling an old car, or filing an insurance claim, you may wonder if you have the option to switch insurance companies. You can change your auto insurance carrier at any time, and it's always best to choose a carrier that will provide the absolute best coverage for you and your vehicle.
As a driver, it's normal to want to shop around and compare car insurance quotes to ensure you're getting the best deal. Use this quick guide while switching car insurance companies to take the proper precautions.
Always Consider Your Coverage Options
Not having enough coverage can compromise your finances, while having too much coverage may result in you overpaying. For example, if you own a 2006 Honda Civic, paying higher rates that come with a full coverage policy may not be practical. If you're overpaying, you should consider switching to a more affordable option or changing insurance companies.
It's good to remember that the more coverage you add to your car insurance policy, the more it will cost.
Make Sure To Check for Potential Fees
If you decide it's best to switch auto insurance companies, make it a priority to find out if there are any penalties and fees for changing insurance carriers before the renewal period. Your auto insurance company should allow you to cancel at any time if you provide proper notice.
While most auto insurance companies will refund your unused premium, some companies may charge a fee if you cancel in the middle of your policy term. Before canceling your policy, talk to the insurance company's customer service or ask your agent about cancellation precautions.
Weigh Your Options From Other Carriers
Never put all your eggs in one basket. Consider getting quotes from three auto insurance companies when shopping for new coverage. Doing this will allow you to weigh your options and compare auto policy premiums and discounts you may be eligible for. However, you should ensure that you get quotes for the same coverages to compare them fairly.
Avoid a Lapse in Insurance Coverage
If you switch your insurance companies after your existing policy expires, you could face a lapse in coverage. A lapse in insurance coverage could lead to financial and legal consequences, especially if you're involved in a car accident while uninsured.
If you cause an accident and don't have coverage, you will be responsible for paying out of pocket for the medical bills and damages. Even if you're not at fault, most states require proof of insurance with the DMV after an accident if the police get called. If you don't have insurance, you can receive a driver's license suspension.
Use this quick guide to switching auto insurance companies to ensure you take the proper steps. Remember to triple-check that you cancel your policy correctly. Please don't assume that your existing policy will automatically end. Contact your current insurance provider, notify them that you're terminating your policy, and ask your carrier to confirm your policy has ended in writing.
If you need cheap auto coverage in California, look no further! Saferoad Insurance has the perfect coverage for you and your vehicle. Contact us for any additional questions or inquiries to get your quote today!