If you are feeling unhappy with your insurance company and rates, you shouldn’t feel like you have to wait for your contract to end in order to take action. If you feel your policy is too expensive or that your claim has been handled unfairly, there are steps that you can take to switch. You should be careful, however, when it comes to switching providers. Here are a few helpful hints to get cheap car insurance and avoid hassles when changing companies.
Starting a New Policy with a Different Company
Make sure that you have the nitty-gritty details of this new policy before canceling your old one. The first thing you should do when looking for cheap car insurance is compare rates from different companies. Once you have found a better deal, follow up with the company in order to get the details of the quote. Has your age, gender, location, car model and make been factored into this quote? Make sure that they will offer you the same amount of coverage for the same or less than what you are paying now. Make sure that your new policy is set in place before starting a new one. If you are caught without insurance during the interim, you may end up losing the new policy.
It is best to start your new policy one day after your other coverage ends. You should avoid any overlap, as it will cost you more money, and if you are involved in an accident during that time it may complicate matters, as you cannot file one claim with two companies.
How to Cancel Your Old Policy
After you have secured your new policy, you can cancel your old one. Make sure you follow protocol when canceling your existing policy, as outlined on your policy agreement. If, for example, you cancel your policy in the middle of a billing cycle, you may have to pay extra fees. Tell your insurance provider ahead of time when you want your policy to end. Think of it as like quitting a job. You always want to give “notice” first. This is the safest course of action to take to ensure that you don’t get strapped with extra fees. Always make sure that you receive a cancelation date in writing, and keep it in your records.
Usually, one can cancel an insurance policy over the phone. It isn’t as big and scary a process as it sounds. Some companies may want to have a more formal letter written to notify them of your desire to terminate the service. If in doubt, check the company’s policy.
A Few More Things to Remember
Make sure that you get a refund if you have a prepaid policy. Always check with your insurance company’s specific policies regarding refunds and don’t be afraid to talk to someone at the company. If you are owed money, they will issue you a check within the first couple weeks of your cancelation.
Your state laws may mandate that you notify the Department of Motor Vehicles (DMV) if you are changing insurance policies. There are many insurance companies that will provide this information to the DMV for you.