Switching Your Car Insurance - Know the 7 Smart Steps

Paying premiums for your car insurance to the same insurer for a very long time can be a costly mistake. Switching car insurance companies after every 2-3 years is something suggested by many industry observers and it is much easier than you might think it to be.

By switching insurers, you can save from 5 to 50% per year. But, not every switch proves to be beneficial so for a smart & safe decision.

Following are the seven smart steps for helping you in making an informed switch:

Shop Around and Compare Rates:

Some auto insurance companies are going to provide a cover for 6 months and some for a year before their respective renewal. Compare the various options with prospective insurers and get a free quote of each.

Check out the respective coverage, discounts, limits, benefits and deductibles to compare each insurer apples to apples. Comparison would bring out a rational perspective on how different plans are going to affect you all along the policy tenure.

Research & Evaluate The Need of Your Coverage:

Some life changing scenarios like getting married, conceiving a child, relocating etc. can impact the coverage needs. But, there are numerous options, deductibles and limits available in the market. Obviously, you want to get the best coverage which you can afford comfortably, this makes researching thoroughly and mapping your needs to the different options available in the market, an absolute imperative step.

This research and mapping process would give you all the relevant plans according to your needs. Now, you just require evaluating the features/ coverage available in each plan. Just select the plan which suits you the best.

Contact Your Current Insurer and Confirm About Switching Penalties:

Every insurance company wants to keep the business with you alive and will be willing to fight hard. Some insurers quickly offer competitive discounts if you hint strongly at leaving. So, keep a check if you are missing out on discounts which your current insurer is offering you.

Investigate Carefully The New Insurer:

Verify the performance, experience & financial strength of the insurers through websites, friends and neighbours. Visit their facebook page or twitter feeds to get an idea of company's community involvement or environment friendly policies

Check Convenience and Additional Benefits:

24/7 customer service will be a reassuring factor since you never know when you might need to enquire something. Some companies provide online service to manage the policy, claims and track repairs.

For managing your policy down the road, you can check whether the company is having any mobile app or an easy-to-use mobile site.    In addition for covenience, find the options of payment of each insurer.

Make The Switch and Cancel Your Previous Policy:

Once you are done with the ground work, make the switch. Your new car insurance must start before or on the same day when your old insurance ends. Even a day lapse could lead to higher rates of coverage in the future.
Instead of stopping the payment of previous policy's premiums, you should cancel the previous policy.

Inform your previous insurer that you are ending the policy with them and confirm the same in written. By taking these safe steps, you become ensure that the company will not continue to bill you and it will also protects your credit.

Print Your Identity Cards:

Swap your old insurance ID cards for the new one when your new insurance policy becomes active. Keep a soft copy of previous insurance's card and other related documents as well for any emergency.

So, follow these steps to save more. Play smart and be smart. Happy switching!

Written By: PolicyBazaar - Updated: 10 June 2020
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