Switching car insurance companies is simple and can save money, but only if you’re sure you’re getting the best deal. Read on to learn how to go about the process and when it makes sense to change insurers.
How to Change Your Auto Insurance Carrier?
- Review your current auto insurance plan for deductible amounts and coverage. Ask your insurance provider if you will be charged a cancellation fee.
- Have your personal information handy, including the vehicle identification number and your driver’s license.
- Get quotes for similar policies from at least three different insurance providers.
- If your vehicle is leased or financed, get in touch with the lender to inform them that you will be changing insurers.
- Shortlist your options; decide on a new plan and purchase it.
- Contact your old insurance provider to cancel the coverage. Make sure not to cancel before your new policy is in effect.
When Should You Change Insurers?
You’ve Relocated
Two major factors that influence premiums are where you live and where you park your car. If your new home is in a densely populated area or does not have access to secure parking, expect to pay more.
You’ve Tied the Knot
Discounts may be available for having multiple drivers on the same policy or if you and your spouse are sharing a vehicle.
Your Teen Has Begun to Drive
Teen drivers are expensive to insure because they are inexperienced.
Adding a child to your car insurance policy will not be cheap, but other discounts may lower your payable premium.
You’ve Retired or Celebrated a Significant Birthday
Older drivers are deemed less risky to insure than younger drivers, resulting in lower average car insurance premiums.
Your Daily Commute Is No Longer the Same
When calculating premiums, insurers consider the number of miles you drive each year. A few companies even offer low-mileage policies.
You Want to Spend Less Money
Even if your situation hasn’t changed, shopping around for car insurance can help you find the best rates. When comparing rates, the Insurance Information Institute (III) recommends contacting at least three companies. Many companies make it simple to obtain a free auto quote online.
