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How to Switch Car Insurance

For one reason or another, you might decide to change car insurance coverage to another company. Maybe your newly discovered company provides you with the same amount of coverage for much less premium.

You may have moved and need to switch to another provider that services that neighborhood, or perhaps you're not happy with your policy under your current car insurance company.

With the Internet's explosive growth, no end in sight, easy quote comparison is a mouse click away!

Why Would You Change Your Car Insurance Carrier?

You should periodically look over your car insurance coverage so that you'll be certain that you're getting the best insurance value all around. You'll realize that it does pay to compare policies.

In some locales, prices for identical policies fluctuate considerably between different car insurance companies. The current philosophy behind these sometimes dramatic price variations is rather involved, but it all boils down to company claims history with varied insureds in different coverage groups (i.e. insured's age range, accident frequency, vehicle type).

For instance, if a substantial percentage of insureds within a particular coverage group submit claims within any given year, their rates will reflect this. Once this has occurred, nice discounts and potentially lower premiums could be found with other insurance companies. Once you've decided to switch car insurance companies, you'll discover it's quick and easy to go for it.

How to Cancel Car Insurance Early

Normally, in order to cancel your car insurance policy all that you need to do is let your car insurance company know in writing or contact the policy's insurance agent, letting them know the date that you desire your policy to be terminated. Some states require that your new agent notify your old one of your policy change. Some car insurance companies will ask you to return your printed policy. Your insurance company will deliver a cancellation request form that you will need to sign and return to them. Look over the form carefully and make certain of your policy information on it is correct. If this form isn't received by the insurer within a couple of weeks of sending your letter, contact your agent or company as soon as possible so that you can check on your cancellation status. Do not simply walk away from your old policy before it is actually cancelled.

Every state mandates that you cancel your car insurance policy with appropriate notice, as the insurer may assume that continued coverage is desired, and they may eventually terminate the policy on their end for premium non-payment. Under these circumstances, they would also report your lack of coverage to your local DMV. This can compromise your credit rating as well your ability to obtain new insurance.

Have Your New Car Insurance Policy in Force First

You should have your new policy in force before you cancel your old car insurance coverage. Or you may end up with an insurance protection gap for more than a day! The majority of states require all drivers to have a minimum amount of car insurance in force, and the majority of insurance companies will not cancel an in-force policy without proof of new coverage, unless of course you no longer own a car. Your new company will be able to synchronize your new policy's beginning with your former policy's previous coverage cancellation.

Change Car Insurance Policies - When?

Renewal Time:

Your renewal is an excellent time for you to change car insurance, since there's no refund involved with the current insurer. Renewal notices are sent approximately 30 days or more before the policy is scheduled to renew, which all depends on your particular state regulations. If you do decide to switch carriers, you must have your new insurance coverage in force before the current policy renewal occurs. One thing to be on the lookout for is that though the carrier may say that you have 10 – 30 days to pay your renewal premium is due, you will not be covered until your insurance provider receives and processes your payment. If you're involved in a wreck or worse during this time frame there is an excellent possibility that there is no coverage in force since your premium is unpaid!

Anytime:

All car insurance policies contain a provision allowing you to cancel your policy with proper notice at any time. In a few states car insurance companies "short rate" the policy that means one pays a penalty for canceling before the policy renews. Most insurance companies pro-rate their policies so there is no penalty. The advantage of switching before the renewal date can save you a lot of money. For example if you have a policy that runs from Jan 15th to Aug 15th and you have an accident or ticket that will be over 36 months on March 15th. By switching car insurance companies on March 16th, you get a discount for having a clean driving record. Your current carrier won't apply this discount until the policy renews on August 15th! This can save you hundreds of dollars immediately!

All car insurance policies have contract provisions that allow for the cancellation of the policy once proper notice is given. There are states where car insurance companies can go with short rating a policy, which means that you're subject to a penalty for canceling your insurance coverage before your renewal date. However, most insurers work on a pro-rate basis so you incur no penalty when you go with these. A car insurance policy change and switch before your renewal date can add up to a substantial savings. For instance, if your policy runs form June 1st to January 1st and you've got a ticket or accident that has gone over 36 months as of August 31st. If you switch your car insurance company on September 1st, you'll be eligible for the clean driving record discount. The current insurance provider will not apply the good driver discount until the policy renewal occurs on January 1st. A car insurance change under these circumstances can potentially save you several hundred dollars!

How Long am I Looking at to Change Car Insurance?

When you change car insurance companies, your new agent or carrier in most cases has the ability to change carriers while you're waiting! Most of the time, they just require a driver's license and down payment along with a copy of your current declaration page to get your new policy in force.

So why not get started today and get free online auto insurance quotes from top companies by entering your Zip Code on top of this page and completing our short, safe and secure questionaire, and we'll make sure that you're connected with the agents best qualified to help you save your hard-earned money. You'll be glad you did.