With so many competing car insurance companies these days, it’s often worth your while to switch companies to cash in on extra savings. However, you want to make sure you switch in the proper way. Here’s what you should know about changing car insurance providers:
Avoid a Gap in Coverage
The most important thing to remember when switching car insurance is that you’ll need to line up your new coverage date so that it picks up exactly where your old policy left off. Failing to do so means you could go days or weeks without car insurance. Not only is this against the law, but it also leaves you financially vulnerable in the case of an accident during the gap.
Ask About Cancellation Fees
Did you find a fantastic new deal on car insurance? That’s great! However, if you end up owing early cancellation fees to your current provider, you may not be saving as much money as you think. Before cancelling, make sure you know whether you’ll be subject to any penalties. If so, you may prefer to wait until your policy is up before you switch.
Collect Any Refunds You’re Due
Many companies offer discounts to customers who pay in advance. If you cashed in on such a deal with your current auto insurance provider, you may have money owed to you upon canceling your policy. If this is the case, make certain you understand how to get your money back before you cut ties with the company altogether.
Compare, Compare, Compare
If you’re ready to switch car insurance providers, take the time to truly compare all the options available to you. Just because a friend or family member got a great deal from a particular company doesn’t mean it’s the best deal for you, too. Take advantage of a tool like this one from NerdWallet to make the most of your switch.
It’s a good idea to examine your car insurance options from time to time in order to get the best deal. However, the process is important, too. Follow the above guidelines for switching car insurance so that nothing slips through the cracks.
