Canceling Your Old Policy and Buying a New One
Changing auto insurance can sound like a frightening process, but it’s actually quite simple. Drivers consider changing insurers for several different reasons: moving, the quest for better rates, the desire for better customer service or even just a personal whim could cause a driver to think about finding a new policy. But while the process is simple, there are steps consumers must follow before canceling their policies:
- Don’t cancel until you find a new carrier: You don’t want to drive without auto insurance. Ever. Do not cancel your policy until you’ve found a new one.
- Seek competitive quotes: Use a service such as AutoInsuranceRemedy.com, which will provide you with person-to-person access with some of the most respected insurance companies in your area. By bringing the companies to you, AutoInsuranceRemedy.com eliminates the hassle of extra research and haggling. You’re introduced to the insurance companies, and you can ask however many you choose to provide you with competitive quotes that meet your personal needs. Then review the quotes before deciding which policy is best for you.
- Know your state’s regulations: Depending on where you live, you will need to get an auto insurance policy that at least meets your state’s standards. Experts strongly recommend using your state’s laws as a starting point for developing your policy: Get coverage that far exceeds your state’s standards.
- Realize why you’re changing policies: Did you have an issue with your previous insurer? Was customer service an issue, or are you merely concerned about costs? Keep this in mind as you review quotes. If customer service is your priority, judge your prospective insurers in that regard.
- Understand that several factors can impact your insurance rates: Your driving history, credit rating, type of car, and even ZIP code can impact your insurance rates. Even something as simple as the distance you drive to work could be a factor in your premiums. If money is a concern, make sure to keep your credit rating high – a good credit rating can have an impact on your auto insurance rates.
- Consider your other policies: Are you a homeowner? A prospective insurance company might give you a multiple-policy discount by combining your home and auto policies.
- Timing isn’t everything: While a month or so before your existing policy is up for renewal is a good time to consider changing insurers, there is no set time that’s required. You can cancel your policy one month into your coverage or one day before it concludes. Just make sure you have your new policy ready before switching. Never consider driving without auto insurance coverage.
- Select your new policy, then cancel: After you’ve reviewed competitive quotes, considered your state requirements and your personal comfort with insurance, and chosen the best company for you, it’s time to cancel your old policy. Call your old insurer and inform them that you wish to cancel your policy. You might need to send a written cancellation notice via fax, or a form could be sent to you to sign. Any credits left on your account will be refunded. Make sure to give your old insurer a cancellation date – and make sure that date is the same date as the start of your new policy. Enjoy your new coverage!