To car owners, switching insurance policies might be a positive experience. By switching, you can get a better coverage or lower premium fees. However, before you make that move, it is essential to do some research and shop intelligently.
First and foremost, you need to understand the coverage levels and the terms used for various types of insurance before engaging a broker or an agent to pick the best policy. Here are important things to know before switching insurance.
1. Confirm your current auto-insurance rate
Even if you want to review your insurance policy at the end of the year, it is so important to check the rate. You may have qualified for a discount that you were not entitled before. Also, your present policy may not fully cover the changes in your position such as age, new house or marriage.
2. Be a clever consumer
Take some time to learn about insurance companies and their products. Are they able to address your needs? Are they reliable and do they offer excellent customer service? A good insurance company understands that offering remarkable premiums is the only way they can maintain their clients. They are also aware that developing good relationships with their clients is beneficial now and in the future.
3. Confirm the benefits
When switching insurance, it is so important to confirm the benefits. Stop comparing premium to premium only, and start comparing the benefits of each policy. Make a list of all the benefits your present coverage provides, and start comparing with other prospective policies offered by other insurers. Look beyond your auto-premium price. Saving money for an insurance coverage that has no benefits is not a wise decision.
If you have involved an insurance agent, let him/her explain more about the benefits. An experienced agent may raise some issues that you may not have thought about.
4. Always double-check possible extra costs
With proper notice, you can switch your auto-insurance even in the middle of the coverage period. The company reimburses the unused share of the premium. However, some companies do charge a penalty or a fee. Even after making your mind, it is wise to calculate whether the switch makes financial sense or not. Would you wait until the end of the policy before switching or just make a move?
Things to know once you have decided to switch:
- Do not cancel your present auto-insurance policy soon. Before you contact the company to cancel, make sure the new premium is active. It is vital to until you are 100 percent sure.
- The estimate that your agent gave you may increase. The price that your insurance agent estimates is not the final quote.
- Remember to cancel the old policy after receiving documentation for the new policy. Do not only stop paying your premiums. It iscrucial to have a written confirmation.
- Always carry your auto insurance card. In case you are stopped by law enforcers and you cannot show proof of your vehicle insurance, there are penalties.
- If you are switching from one insurance company to another, contact your agent to understand more about the benefits.