Different companies offer different quotes and insurance packs and it’s normal to decide to change your current one, especially if some other policy covers more features and you need to pay less for that service. But, what to do when your old policy is still active? If you want to stop the contract, you may need to pay some fees for it, and you should carefully think about every aspect before taking any action.
There is always a better rate, but you need to be very careful and check every aspect before you decide to switch the car insurance company. Many people miss important information that often it’s not mentioned in the coverage list and they think they’re getting a better deal for a lower price. Everyone wants to save money but think twice before you decide to save on car insurance. Compare the rates every few weeks because the companies always change the conditions so they can stay competitive in this market.
If you are sure that you want and need to switch the insurance program, you need to avoid these common mistakes:
1. Not asking for a refund
Many companies will try to charge you fees for the amount of time left for your policy. A lot of customers will pay, so they won’t lose time and move quickly to another company. But, many of us still don’t know that we have a right for some refund, especially if we have paid the whole price upfront. You may not get back the whole amount of money for the unused months but should have a clear refund policy that allows the customers not to lose the money.
2. Double coverage is not double protection
Many people decide to sign a contract with another insurance company while their previous contract is still active. They think they will have double protection and can get more money for the same incident. But, be careful with this belief. Double coverage is not as same as double protection. If you have an accident, you can use the policy that has a better cover for the same damage. Every attempt to get paid from both insurance companies is referred to as a fraud and criminal and you can be prosecuted in court. Also, this double coverage may last 3-4 months, and then you need to decide if you keep the new one or make a new contract with the previous company.
3. Not canceling your current policy
You need to cancel your current policy, but you should do that formally, with a written announcement. You may think that when you stop paying they will cancel the contract by default, but you need to do that personally or by a phone call. If you don’t put your signature on a cancelation contract, they will assume you’re still their customer and automatically renew it.
4. Keeping the old insurance policy in your car
After you cancel the contract, you need to move the old documents out of your car. If a police officer stops you and asks for the documents, you can easily mix them, until you find the right policy to show them. Police officers don’t want to lose time waiting for you to find the documents, so you should always keep only the regular policies in your car.
5. Not getting a new coverage after canceling the previous one
After you cancel your previous policy, you need to immediately activate the new one. Don’t allow to have a huge coverage gap because accidents can happen every day. The best time to sign a new contract is immediately after you cancel the old one. That will help you avoid unpleasant situations that will result in great money loss.
6. Check all the aspects that may get you a discount
If you plan a wedding or you expect a child, it’s always better to switch the plan so you can get a good deal for your insurance policy. Everything in your life may affect the final price, including the shared ownership over the car or a full package of insurance for every family member and your home and car. Also, if you just had an accident and your car is on service, you should wait until it’s fixed and the case is solved and closed, because it may cost you a lot, especially if the case is still active.
7. Not reading the conditions
Before you sign your policy, you should read the terms and conditions and ask for an explanation if something sounds weird and unclear. Don’t ever sign anything before you are sure everything is all right, because it may cost a lot of money in the future, especially if the text contains very unclear sentences that may have two or more meanings.
8. Not comparing the offers and quotes
If you found a better quote, the chance that there is even better in other companies is pretty big. Always find a few policy offers, compare the prices and the conditions, and then decide what is best for you. A lot of factors can affect the price and you need to be informed about that. Also, if you contact your current company and tell them you want to switch, they may offer an even better deal to keep you as a loyal customer.
It’s a good idea to change the insurance company?
It’s quite normal to require better coverage for your money. But, you don’t need to fall to “great offers and deals” especially when the company is unknown to you and they have poor user experience and no evidence for previous work. Also, you can always choose an insurance service and check online how much you will save, by entering your general data at websites like www.general.com and choose the plan that fits your needs.
So, if you have a good reason to switch your auto insurance, you need to do that, but get ready to be asked to pay some fees, especially if you cut the contract earlier than the final date. There are a lot of reasons you may need to change the policy, like moving to another state or when you are not satisfied with your current company. Just don’t do anything before you think about it and see the possible advantages and disadvantages of your case.