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How to Change Car Insurance: Best Quotes

Amid circumstantial changes, you may find that your current car insurance no longer meets your needs. In such a scenario, it’s essential to understand how to change car insurance. Let’s find out!
how to change car insurance - guide
How to Change Car Insurance: Best Quotes
Knowing when to change car insurance is crucial. Let's explore the process of changing car insurance, from when to switch to the steps involved and whether changing car insurance is a good idea for you.
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An essential component of responsible vehicle ownership, car insurance ensure financial protection against accidents, theft, or other unexpected events. However, circumstances change, and you may find that your current car insurance no longer meets your needs or is too expensive. In such cases, it’s essential to understand how to change car insurance. 

Before changing your car insurance, use Beem’s online comparison tool to find the best policy. Now, let’s explore the process of changing car insurance, from when to switch to the steps involved and whether changing car insurance is a good idea for you.

When to Change Car Insurance

Knowing when to change car insurance is crucial. Here are some situations that might prompt you to consider changing your car insurance:

Policy Renewal

Most car insurance policies have an annual renewal period. This is an ideal time to review your coverage, rates, and overall satisfaction with your current insurer. If you’re dissatisfied or have found a better deal elsewhere, it’s a prime opportunity to switch.

Life Changes

Major life events, such as moving to a new state, getting married, or buying a new car, can significantly impact your insurance needs. It’s essential to ensure that your policy adequately covers these changes.

Price Increases

If you’ve noticed a significant increase in your insurance premium without any corresponding benefits or changes in your circumstances, it’s a sign that you should explore other options.

Better Offers

Insurance companies periodically update their offerings, and new competitors might provide better coverage or rates than your current insurer.

Poor Customer Service

If you’ve had a negative experience with your current insurance company’s customer service, it might be time to switch to a provider that offers better support.

Driving and credit historyAverage annual cost of full coverageAverage annual cost of minimum coverage
Good driver with good credit$2,148$685
Good driver with poor credit$3,455$1,118
Driver with an at-fault accident and good credit$3,164$1,044
Driver with a recent DUI and good credit$3,933$1,403
Table 1.0- Impact of Driving History and Credit on Car Insurance Premiums
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How to Compare Car Insurance Companies

When considering changing car insurance, comparing different companies is crucial to ensure you’re getting the best deal. Here’s how to go about it:

1. Research: Start by researching reputable car insurance companies. Look for well-established insurers with a record of reasonable customer satisfaction and financial stability.

2. Coverage Options: Compare the coverage options each company offers. Ensure that the new policy provides at least the same level of coverage as your current one, if not more.

3. Rates: Request and compare quotes from multiple companies for the same coverage. Be sure to provide accurate information to get an apples-to-apples comparison.

4. Discounts: Inquire about available discounts. Many insurers offer discounts for good driving history, bundling different policies, or having certain safety features in your vehicle.

5. Customer Reviews: Read customer reviews and ratings for the companies you’re considering. It will help you get some valuable insights into customer experience.

6. Claims Process: Research the claims process for each insurer. A smooth and efficient claims process can significantly affect a stressful time.

7. Customer Service: It is crucial to check the quality of customer service to ensure that the insurer is responsive, helpful, and reliable.

Read more: how do car insurance claims work

Key Steps to Change Car Insurance

Once you’ve decided to change car insurance, follow these eight steps to make the process seamless:

1. Research and Choose: Select the new car insurance company that best meets your needs based on your research.

2. Policy Overlap: Ensure coverage is maintained between your current and new policies. Coordinate the new policy’s start date with the old one’s end date.

3. Cancellation of Current Policy: Contact your insurer to cancel your policy. Be cautious of prospective cancellation fees or penalties.

4. Notify DMV: Inform your state’s Department of Motor Vehicles (DMV) about the change in insurance. Many states require continuous coverage, and failing to do this could result in fines or penalties.

5. Proof of Insurance: Obtain proof of insurance from your new insurer. You must carry this document in your vehicle to show law enforcement if needed.

6. Update Lender or Leaseholder: If you’re financing or leasing your vehicle, notify the lender or leaseholder about the change in insurance.

7. Automatic Payments: If you had automatic payments set up with your old insurer, cancel them to avoid double payments.

8. Review New Policy: Carefully review your new policy once you receive it to ensure it matches what you agreed upon during the quoting process.

also know about: tips for buying car insurance

Is Changing Car Insurance a Good Idea?

Changing car insurance can be a smart move under the right circumstances. If you find better rates, more comprehensive coverage, and improved customer service, or if your life circumstances change, switching can save you money and provide better protection. However, weighing the benefits against any cancellation fees or potential gaps in coverage is essential. Be sure to review your options thoroughly before making a decision.

How to change car insurance 3 1024x576 1

Conclusion

Changing car insurance is a process that requires careful consideration. Regularly evaluating your policy, comparing options, and staying informed about changes in the insurance landscape can help you make the right decision for your needs. Remember, following the steps, such as canceling your old policy and notifying the DMV, is essential to ensure a smooth transition. Before changing your insurance, ensure to use Beem’s online comparison tool to find the best policy for your needs. Consider the coverage options, deductibles, and premiums offered by different insurance companies and pick the best one that suits your needs. Ultimately, the goal is to have car insurance that provides adequate coverage at a reasonable price while aligning with your current situation.

Frequently Asked Questions

1. Will Changing Car Insurance Affect My Credit Score?

No, changing car insurance does not impact your credit score. However, some insurers use credit-based insurance scores to determine rates, which may result in a soft inquiry on your credit report.

2. Will Changing Car Insurance Affect My Credit Score?

Yes, you can switch car insurance mid-policy. However, be aware of potential cancellation fees from your current insurer and ensure no coverage gap.

3. How Often Should I Review My Car Insurance Policy?

It’s a good idea to review your car insurance policy annually during renewal. Additionally, review it when you experience major life changes or if you notice significant rate increases.

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Author

Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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