People switch their car insurance companies for several reasons. The most common reason is that they are trying to save money on their premiums. Another popular reason is to get better customer service or more insurance perks. Switching auto insurance companies, however, takes some preparation if you want to get the best new deal.
The first step you need to take is to get multiple, free car insurance quotes from different companies. You can easily compare their monthly or yearly fees and features online. Look for extras like free rental cars or discounts with other businesses. Check the customer service reviews online.
Find out if you will have to pay a cancellation fee to your current car insurance company. A few companies require their customers to pay out a certain sum of money before terminating an existing policy, but others simply refuse to grant a refund if you have already paid the whole year or month.
Read over your current car insurance policy before you try to switch companies. Figure out how long you have left on your policy, and find out the best time to start your new policy. You should never be without car insurance, even for one day, if you plan to drive your vehicle. Be very careful when you are planning to start your new policy. It should not overlap with your existing policy. Doing so may cause problems if you need to file a claim.
Contact your current insurance company to cancel automatic withdrawals. You don’t want to log into your bank account only to find out the company took out money! You may be able to cancel automatic payments through your online car insurance account. If not, a simple phone call should take care of it.
When you are ready to switch companies, ask the new insurance company if they will cancel your current policy or if you must do it yourself. You can also call your current company and request a cancellation. They usually mail or email you a form that you must sign. In any case, get written or email confirmation that your account has been closed.
Make sure to tell your new car insurance company about your affiliation with certain companies or clubs, your grades in school, and your driving history. Many insurance companies grant discounts for good driving or high GPAs. Sometimes, alumni associations can also get you lower car insurance rates.