It is a common practice to shop for car insurance every year or so. It is because your car insurance rate is dependent on several factors that are subject to change.
Here are some factors that might change over time making you switch your car insurance:
- Adding a new car or a new driver to your insurance
- Moving to a new state or area
- Getting close to policy renewal time
- Getting married as an insurance rate is likely to go down as the marital status changes.
Hence your rate must also change accordingly. Here is a simple guide as to how to switch car insurance:
Evaluate Different Policies:
Look around for car insurance companies offering cheaper rates. If your credit rating has improved over time or you have made efforts to bring down your insurance rate such as installing safety equipment and taking up safety courses then you must look around for better rates.
Generally speaking, insurance companies revise and increase insurance rates over time. So, shop around and look for better rates elsewhere.
Reassess Your Coverage Requirement:
Sometimes your coverage needs change over time. This is one of the major reasons why people switch insurance. Moving to a new state would mean your minimum insurance requirement would change.
Or with the time you might realize you are unnecessarily paying for collision or comprehensive coverage. Your health insurance coverage might be good enough to protect you and you might not need to pay for personal injury protection.
These are some of the factors that change over time and require you to reassess your coverage requirement. One thing to note here is that if you have been through an accident in the recent past then probably you should wait a little bit before switching your insurance.
Similarly, if you have been caught violating any traffic law recently you should a little while before switching your insurance. You might not get a good rate in such a situation. Instead, try to improve your driving record by driving carefully.
Research Well About The New Insurance Provider:
It is always good to dig well into the information pertaining to the service quality of insurance providers. It is not necessary that a low rate will always be the best option. You need to look out for any hidden charges. Similarly, check how good a company’s claim handling skills are.
There is no use of paying for insurance if the company does not turn up in a time when you need them. Cooperative and responsive staff is extremely crucial when it comes to services marketing.
Avoid Coverage Lapse:
Even if you decide to switch to a new car insurance provider, do not let your insurance lapse. You could be charged if your coverage lapses no matter how small the gap. Insurance companies take coverage lapse very negatively.
Above all, it is mandatory by US law to have car insurance. If you are found driving without car insurance you can face severe charges. Your license can be canceled or you could be charged huge fines. So, avoid coverage lapse under all circumstances.
Get New Insurance Coverage:
With a new policy, you get new documents, the new ID and new coverage. Keep your documents safe. You must carry some evidence of car insurance with you all the time.
Most insurance companies give mobile apps where you can easily access your insurance ID, have all your information fed and even file a claim if needed.
You can also check the status of your claim through a mobile app. If you have bought your car on a lease, inform your lease provider immediately after you have switched your car insurance.