Checklist for Switching Car Insurance Companies

Switching car insurance companies is easy as long as you shop around, negotiate for the best prices, and avoid cancellation fees and coverage gaps.
Written by Brady Klopfer
Reviewed by Carrie Adkins
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    Switching your
    car insurance
    company can be a really great way to save money. As you stay with an insurance company, it’s common for your rates to substantially increase. Auto insurance companies know that you’re unlikely to go through the process of switching companies, so they take advantage of you, and gradually raise the rates on you.
    On the other hand, car insurance companies that you don’t have coverage through will do just about anything to get your service, which means they’ll often be willing to give you a tremendous deal if you sign up with them. In general, it’s a great idea to switch car insurance companies every two to four years, to make sure that you’re getting a good deal, never getting swindled, and always happy with your coverage.
    Switching car insurance companies may sound like a hassle, but it doesn't have to be. In fact, switching auto insurance providers isn’t a big deal at all, so the money that you save by finding a more affordable plan, or a plan more tailored to your specific needs, makes it well worth it. However, before you begin the process of switching your car insurance company, there are a few things that you should consider, so that you’re well equipped, and know what to look for:
    • What kind of a contract are you on? Does your contract run through a certain date, or is it month to month?
    • Are there any penalties that you face for cancelling your plan?
    • What do you need, and what don’t you need from your car insurance coverage? Do you simply want to find a plan similar to your current one, but for a small price, or do you need a change in coverage?
    After you’ve asked and answered those questions, you’re ready to get started switching your car insurance companies. This process is easy, but if you want to make sure that you get the best deal possible, you’ll have to be thorough. Here’s how:
    • Shop around. Don’t just jump on the first good rate you see; try a lot of different companies, to make sure you find the best deal for you and your car.
    • Don’t buy the plan. Once you find the right plan for you, make note of it, but don’t commit to it yet.
    • Call your current car insurance company, and tell them that you intend to cancel your service.
    • Listen to their offers and negotiations as they attempt to keep you as a customer. If they can offer a better rate than what you found, then take it.
    • If they don’t offer a better rate, don’t accept it, but don’t cancel your plan either.
    • Sign up for the insurance plan that you found to be best for you.
    • Once your new insurance is up and running, contact your old insurance company and cancel your plan.
    By cancelling your car insurance this way, you guarantee that there are no gaps in your coverage (in other words, there’s no space between your old plan and your new plan, where you are uninsured). Simply follow this checklist and it will make switching to a new insurance plan an absolute breeze.
    Having car insurance is one of the most important parts of owning a car, but as your rates increase and your situation changes, it’s common to get charged way too much money. If you’re interested in lowering your insurance rates, but you’re not so interested in going through the process of doing so, you can count on
    to do all of the work for you, to ensure that you get the perfect car insurance coverage for your situation.
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