How to Switch Car Insurance Companies

Getting out of an unwanted relationship can be very difficult. Even if the 'break-up' is between you and your car insurance company, there are things that you need to consider. Even though you may have a policy that lasts for a predetermined amount of time, most policies have clauses written into them by which the agreement can be terminated. Be sure to have good coverage before you get rid of your current coverage. Shop around for policies that suit your needs before you go with a new company.

Shop for the Best Car Insurance Rates

The Internet has improved the process of shopping for insurance. You can shop online for a new policy. In fact many Insurance websites allow you to compare and contrast various insurance companies against each other. The online method of Insurance shopping has become a big hit with consumers; it allows people a chance to do some serious research on policies without a lot of pressure. This can empower the shopper to make the best decision about their insurance company.

Avoid Lapses in Auto Insurance

You should always have valid insurance coverage, no matter what. Lapsed insurance can drive your insurance premiums way up and can also result in getting your license or registration revoked. If you are cancelling an existing car insurance policy, be sure to have your new policy activated first. You may be able to get assistance in the switch from some insurance companies, but in the end it is your responsibility.

The Best Time to Switch

If you know that your current policy is ending soon and are thinking about making a switch, take the months leading up to the end of your policy to shop around for a new policy. It is essential to have valid coverage with your new company before your old policy expires. It is a good policy to notify your current provider about your intentions to switch insurance companies. If you are dropping your policy because you are unhappy with the coverage, be sure to let them know this as well. A good rule of thumb is to notify your current insurance company, in writing, one billing cycle prior to the policy's expiration.

Acquire New Coverage Before Canceling the Old

You may have to learn a hard lesson, that you will most likely want to avoid, if you let your insurance lapse. For example, if you get pulled over and a policeman asks you for proof of insurance and you don't have it, you could actually end up in jail and your car could be impounded. If you're going to drive, you absolutely must have valid insurance. The alternative is not going to be a lot of fun.