By clicking this article it seems you probably unsatisfied with your current insurance plan or you haven’t had car insurance before and you are not sure which car insurance you should choose, don’t you worry you are not the only, there are around 168.750.000 million people who switch their insurance plan at least every one or two years that’s 3 out of 4 drivers in the United State alone. Although switching car insurance company may save you a lot of money on your premium and from there you can find another car insurance provider with cheaper price, you have to know some companies require you to pay a small cancellation fee that you don’t want to spend a penny on.
Why do you want to switch car insurance in the first place?
Before you start switching your car insurance company just answer this question “why do you want to switch your car insurance company in the first place?” if your answer is you are not happy then there is more reason to it because many people just switch to another insurance company place to place it happened because they are not so sure if they can really trust their insurance provider or not, while this may sound like a wise move to them it’s like why do you even want to trust stranger? But it will only give them a disadvantage as they will never receive true value at all even in some cases you may miss a loyalty discount or bundling discount offered by your current car insurance program. Now take a look down below and if you don’t have one of these 4 reasons then you don’t need to switch your insurance plan.
- Your car insurance provider just increased the premium
- You moved your residency
- You don’t get any solution from your car insurance company’s customer service
- You will soon add someone under your car insurance plan
Do you have any of those reasons above? If yes then it is time for you to watch out the 5 important tips when switching car insurance company if you don’t want to have any disadvantage when switching your car insurance company, here are the 5 important tips for you to be a wise car insurance buyer.
- Cancel before the renewal not after
If you cancel your car insurance plan right before the renewal, congratulation you are 4 steps closer from becoming a wise car insurance buyer but if you cancel the plan right after the renewal especially after you paid for the policy then this probably the first mistake that you realize other than that you need to be careful about the gap in coverage. One thing for sure you don’t want to cancel your current policy and have a gap before the coverage under the new policy starts. If you have a high duration of the break on your car insurance plan, the new car insurance company may even charge you a higher premium at the time you get your hands on the new policy.
- Shopping around for the new car insurance company
Once you cancel your current car insurance company it’s time to shopping around for the new insurance provider but this time it won’t be the same as going place to place. The new car insurance company that you should be searching for is the one who offers you many options that suits your need and pretty sure you don’t want to pay for the cheapest price you know the ineffective coverage you will have if you sign up for it. Look for these 6 signs of a valuable car insurance company.
- The company prioritize the value first
- The company has stable financial stability
- The company offers many discounts
- The company offers its customer with customer service
- The company has mobile device accessibility
- The company has many positive reviews
- Get full coverage
When buying a new car insurance plan first don’t just focus on liability coverage but think about comprehensive and collision coverage too. Usually, full coverage can cover:
- The damage you may cause to others which beyond your financial limit
- Your injuries or your passengers, if you are at fault the medical coverage will cover for it.
- The loss of your car by theft
The minimal coverage could give you safety but the full coverage can provide you protection because you will never know what will happen for the next day so it will be better for you to buy full coverage that you can afford.
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- Cancel the old policy now
When you sure and decided to go for the new car insurance company, confirm the cancellation to your old car insurance company this usually can be done through written notification and don’t forget to ask for a refund. Here is the following information that should be added to your cancellation letter:
- Your name
- Your address
- Cancellation request with policy number and effective date of cancellation
- The reason for cancellation
- The name of your new car insurance provider
- Your signature
- Date of signature
- Apply for the new car insurance company
Now you are at the final step of becoming a wise car insurance buyer it is time for you to take action by updating your car insurance ID card, it’s also better for you to have the hard copy instead of just online access just in case you are stopped in an area without cell service.