When Switching Auto Insurance

Written by Michael on . Posted in General / Other Insurance

0 Flares Twitter 0 Facebook 0 Google+ 0 Email -- 0 Flares ×

Although, there is a lot written about auto insurance, one may still feel the need to learn more about the coverage and make well informed decisions. After all, the wonderful world of car insurance just keeps on growing and expanding, adding new facets to it. The prime aim of this page is to how to switch insurance companies relatively painlessly, especially when related to automotive insurance and managing the coverage. One is often looking for a change for a number of reasons. Perhaps, one is moving to another state, or buying a new car or one may simply be dissatisfied with the existing company’s service. Whatever the reason for switching to another company for the coverage, make sure you give the current insurer sufficient notice, or it may cost you money and can even affect your credit history negatively.

Generally speaking, one is allowed to cancel their policy any time during the policy. All they need to do is send a written notice stating the date of cancellation. Don’t assume that you can simply cancel your earlier policy by simply not paying your next premium. The bill will automatically get added to the next term’s premium payment and the non-payment will reflect in your credit report. Your insurers may have warned you about the termination of the policy if you fail to pay your next premium, but they will not give you the complete picture or talk about the repercussions you may face. Therefore, do things in the proper manner.

Another aspect to keep in mind when canceling the auto insurance with the current company is, to not to hurt your chances of getting auto coverage from the same company in the future. A prior cancellation may reflect you a high-risk applicant by other companies and they may use this as an excuse to take out a higher premium. The only way to avoid this trap by making the termination of your policy official.

If you have made up your mind to move on another auto insurance provider, the first step is to get in touch with your insurer and let them know well in advance about your plans of canceling the policy. Send them a written notice and give an effective date.  The cancellation request form will be sent to you. Just make sure that there is no lapse in the coverage, in case you plan to keep on driving the car while changing to another insurer. Just coordinate the effective starting date of the new policy with the termination date of the older policy.

Related Posts

0 Flares Twitter 0 Facebook 0 Google+ 0 Email -- 0 Flares ×
0 Flares Twitter 0 Facebook 0 Google+ 0 Email -- 0 Flares ×