You may be under the assumption that switching insurance companies is a hassle. However, switching insurance companies can be rather easy with the right information.
By making the switch, you can not only find the best coverage that fits your needs but you can also save a significant amount of money.
So when it comes to switching insurances, what should you know? To help you make a smooth transition, here are 4 things to keep in mind when switching insurance companies.
You should look to switch when …
Some people don’t know when the right time is to make a switch. At the same time, others tend to find themselves trying to switch too late, eventually causing many to settle and renew with their current provider.
- Your marital status changes
- A new driver will be added to your plan
- You buy a new home or vehicle
- Your credit score improves
Also, keep in mind that your age and experience also plays a role and you can start receiving auto insurance discounts starting at the age of 25.
You can switch insurance companies whenever you want to
Whether you’re looking for better coverage or a better rate before an accident, you have the right to switch your coverage when you want to, even during an existing claim.
Once an accident has occurred, your existing insurance will work on the issue from beginning to end, even if you cancel the insurance before the claim is resolved.
One thing to keep note of is that you can’t switch your insurance and then make the same claim with your new provider. By doing so, you could be in danger of committing fraud.
You could be eligible for a refund … or charged a penalty
Depending on the agreement and your provider, you may be eligible for a refund after canceling your coverage before it is set to expire.
For instance, many car and renters’ insurances will refund you, even if you are canceling mid-month after you have already paid for it. However, some insurance policies come with a cancellation penalty or fee.
Before canceling your old insurance, check to see if it is more financially feasible to cancel early or terminate your policy as it expires.
Don’t cancel too early and be sure to swap your ID cards
Lastly, we advise that you do not cancel your original policy ahead of starting your new insurance plan.
You should start your new plan before canceling your old policy to avoid any coverage gaps as they can be more costly than what you would otherwise save.
On that same note, be sure to replace your old ID cards with your new ones to avoid any issues that may come up.